Event Type: Q4 & FY26 Earnings Conference Call hosted by Emkay Global Financial Services Limited

Date and Time: May 28, 2026 (specific time not mentioned in transcript)

Purpose: Discussion of Audited financial results (standalone and consolidated) for the quarter and Financial Year ended March 31st, 2026, and business updates

Management Participants:

  • Mr. Sunil Suresh – Chairman and Managing Director
  • Ms. Shubha Sunil – Whole-Time Director
  • Mr. Venkataramana Seshagirirao Gorti – Joint Managing Director
  • Mr. Sunny Bhadra from Emkay Global Financial Services Limited (Moderator)

Key Business Updates:

  • Financial performance remained relatively flat over recent quarters
  • Company focused on strategic corrections, investments and operational enhancements
  • Proposed merger process of subsidiaries and step-down subsidiaries into single listed entity approved by Board on May 27, 2026
  • Strategic conversion of key franchisee markets (Chennai, Hyderabad, Pune) to company-owned operations, delivering over 40% YoY growth
  • Expansion to direct company-owned presence across key markets covering 80% of India's luxury housing demand
  • Shut down three underperforming stores, opened 11 new stores, with five additional stores expected to commence operations shortly
  • Over half of stores under gestation period in investment and ramp-up phase
  • Launch of 60,000+ sq ft flagship store in Hyderabad delayed due to regulatory approvals
  • First international franchisee showroom in Sri Lanka expected to open beginning of Q2 FY27

Financial Highlights Mentioned:

  • Highest ever order book of approximately ₹62 crores (compared to ₹45 crores in April 2025)
  • Cash reserves strong at almost ₹200 crores (compared to ₹215 crores previous year)
  • Capital investment exceeding ₹60 crores
  • Gross margin expansion by 151 bps from 56.3% in FY25 to 57.5% in FY26
  • Impact of new Labor Code: ₹3.3 crores recognized under exceptional item
  • Higher depreciation and finance cost of ₹14.7 crores due to IndAS lease accounting

Challenges and Headwinds:

  • USD and EUR appreciation impacting input costs
  • Geopolitical disruptions (West Asia conflict) affecting conversion cycles and shipment schedules
  • B2B demand decline from middle of Q4 FY26
  • Supply chain disruptions, longer lead times, higher costs across value streams
  • Project handovers across key markets delayed
  • Longer conversion cycles despite steady customer footfalls

Compliance Statement: The transcript represents the earnings call discussion without indication of unpublished price sensitive information being shared.

Availability of Materials: The transcript of the earnings conference call is available on the company website at https://www.stanley.lifestyles.com/storage/Investor/June2026/f37qh-Transcript.pdf

Additional Notes Section

The document represents the full transcript of the earnings conference call filed with stock exchanges as regulatory compliance. No separate financial data or attachments were included beyond the transcript content. The transcript contains detailed management commentary, operational updates, and Q&A session with analysts.