India · Delayed Price · Currency is INR Stanley Lifestyles Earnings Call Transcripts
Fiscal Year 2026
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Revenue growth remained muted due to demand softness and strategic investments, but gross profit improved and the company expanded its store network and full home solutions offering. Profitability was compressed by higher costs, but management expects margin improvement as stores mature and premium housing demand accelerates.
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Revenue and margins improved in Q2 and H1 FY26, driven by COCO store expansion, localization, and operational efficiencies. The company targets INR 1,000 crore revenue in 3-4 years, with continued focus on premium positioning, new formats, and international forays.
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Q1 FY2026 saw 7.9% revenue growth, led by a 25% rise in retail and 27% in B2B, while franchisee/accessories revenue declined 40% due to the D8 brand exit. Gross margin expanded to 57.4%, and PAT more than doubled. Expansion in Hyderabad and new store openings remain key priorities.
Fiscal Year 2025
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Revenue grew 8.5% in FY 2025, led by premium/luxury demand and improved gross margins. Expansion continues with 15 new stores planned, focus on B2C, and benefits expected from BIS import norms. B2B remains flat, while B2B2C stabilizes by Q3 FY 2026.
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Q3 FY25 saw 6.5% sequential revenue growth, margin expansion, and strong COCO retail performance, but overall growth was tempered by a 27% decline in B2B2C due to a shift to cash-and-carry. Outlook remains positive with a 20% B2C growth target and margin improvement expected as new stores mature.
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Q1 FY25 revenue grew 5% year-over-year to INR 100.70 crore, with EBITDA up 25.6% and PAT up 8.6%. Gross margin declined due to higher freight and forex costs, but is expected to recover as localization and price hikes take effect. 11 new stores are planned for FY25, targeting 100 stores in 3-4 years.