Stanley Lifestyles Limited – Investor Presentation Summary

Key Operational Highlights

  • Pan India retail presence with 70 stores across 26 cities, including 16 single format Indian cities
  • Store network comprises 46 Company Owned Company Operated (COCO) and 24 Franchise Owned Franchise Operated (FOFO) stores
  • Store sizes range from 3,516 to 72,000 sq. ft.
  • 35 stores have been operational for over three years
  • Opened three new stores during Q2 FY27 across different markets and formats

Key drivers of operational performance: Expansion into new markets including international entry into Sri Lanka, launch of new store format (Stanley Superlative Living), and strategic partnership with Singer Sri Lanka PLC.

Segment-wise Performance

Not Specified

Financial Highlights

Revenue: Rs. 10,706 lakhs (Q2 FY27)

EBITDA: Rs. 1,989 lakhs (Q2 FY27)

PAT: Rs. 293 lakhs (Q2 FY27, excluding exceptional item)

EPS: Rs. 0.49 (Q2 FY27)

Margins: EBITDA Margin 18.6%, PAT Margin 2.7% (Q2 FY27)

YoY/QoQ comparison: Revenue increased 1.6% YoY and 7.8% QoQ in Q2 FY27. EBITDA declined 19.9% YoY but improved 15.5% QoQ. PAT declined 51.5% YoY but improved 350.8% QoQ.

H1 FY27 Performance: Revenue Rs. 20,641 lakhs (down 3.6% YoY), EBITDA Rs. 3,711 lakhs (down 21.5% YoY), PAT Rs. 358 lakhs (down 74.1% YoY, excluding exceptional item)

Drivers of financial performance: Gradual improvement in revenues despite challenging operating environment, delays in residential project handovers, longer customer conversion cycles, and industry inventory build-up ahead of Furniture Quality Control Order leading to heavier festive price discounting.

Key Risks: Delays in residential project handovers, longer customer conversion cycles, raw material price fluctuations, and competitive discounting environment.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Net Debt/Equity: (0.36)x (H1 FY27)

Total Equity: Rs. 47,760 lakhs (September 2026)

Cash and Cash Equivalent: Rs. 17,850 lakhs (including bank balance of Rs. 12,131 lakhs and cash of Rs. 4,913 lakhs)

Total Debt: Rs. 536 lakhs (Short Term: Rs. 474 lakhs, Long Term: Rs. 62 lakhs)

Financial Health Insights: Strong cash position with net cash of Rs. 17,314 lakhs, providing financial flexibility for store expansion and growth initiatives.

Capex & Cash Flow Health

Capital Expenditure: Property, Plant and Equipment increased from Rs. 9,246 lakhs (March 2026) to Rs. 12,486 lakhs (September 2026)

Investment Rationale: Focus on store expansion, manufacturing capabilities, and complete home solutions portfolio development.

Strategic & R&D Initiatives

Investments in Innovation: 15,000 sq. ft. Design & Innovation Centre, 150 designers, 1,000+ skilled artisans, increasing Indian sourcing of key raw materials including leather

Expected impact on growth: Expansion into complete home solutions expected to increase average customer ticket size from Rs. 2.0 lakhs to Rs. 20-25 lakhs, driving higher customer wallet share. Delivered 200+ full home projects with average project value of Rs. 30-35 lakhs.

Strategic Rationale: Evolving from luxury furniture maker to complete luxury home solutions brand, expanding into high-growth markets internationally and domestically.

Industry Trends & Business Environment

Macro/Industry Trends: Furniture Quality Control Order (QCO) implementation in August 2026 led to industry inventory build-up and heavier festive price discounting. Rising affluent consumers and increasing demand for premium lifestyle products in markets like Sri Lanka.

Impact on Company: QCO creates opportunity for Stanley Lifestyles as other furniture retailers relying on imports may seek domestic suppliers. Challenging operating environment with delays in residential project handovers affecting customer conversions.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on improving customer conversions as residential project handovers progress, increasing contribution from newer stores, and strengthening complete home solutions portfolio. Selective approach to retail expansion with performance review of individual locations.

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Proposed amalgamation of subsidiaries aimed at simplifying group structure and improving coordination. Working towards improving cost competitiveness through strategic sourcing under Best Cost Country (BCC) model and greater localization.

Additional Headings

Order Book Visibility: Order book of Rs. 6,020 lakhs as of September 30, 2026, increased from Rs. 4,570 lakhs in March 2025.

Manufacturing Capabilities: Three facilities in Bengaluru with over 3 lakh sq. ft. manufacturing area and installed capacity of 3.07 lakh units. Facilities accredited with ISO 9001, ISO 14001, ISO 45001 and Greenguard certifications.

Brand Portfolio: Multi-brand portfolio serving Premium to Ultra Luxury segments through Stanley Superlative Living, Stanley Level Next, Stanley Boutique, and Sofas & More with ticket sizes ranging from Rs. 1.5 lakhs to Rs. 8.0 lakhs+