Stanley Lifestyles Limited has appointed CA. Sudhir Iyer as Group Chief Financial Officer, effective August 17, 2026. The appointment was announced by the company’s Board of Directors to strengthen its financial leadership team as it scales operations in India’s premium furniture market.

Stanley Lifestyles disclosed the hiring under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In his new role, Iyer will oversee the Group’s Finance and IT functions with a mandate to enhance governance, operational efficiency, and long-term value creation.

Leadership Transition

Iyer joins Stanley Lifestyles from Revathi Equipment Limited (Dalmia Group), where he served as Group CFO and Vice President. During his tenure there, he led financial strategy, business expansion, and transformation initiatives. Prior to Revathi, he held leadership positions at Goenka International and senior finance roles at Arvind Lifestyle Brands Ltd.

His responsibilities at Stanley Lifestyles will include:

• Financial planning and analysis
• Treasury and taxation
• Accounting and compliance
• Risk management and investor relations
• Mergers and acquisitions
• Business finance
• Group IT function

Strategic Focus

CA. Sudhir Iyer stated that his focus will be on building an agile finance function to support business growth through disciplined capital allocation and technology-led transformation. He emphasized strengthening financial performance and governance frameworks while enabling the company’s strategic growth ambitions.

Venkataramana Gorti, Managing Director of Stanley Lifestyles, noted that Iyer’s experience in corporate finance, M&A, and capital markets will be valuable during the company’s next phase of growth. Gorti highlighted that Iyer’s understanding of strategic finance and business operations will strengthen the company’s financial discipline.

About Stanley Lifestyles

Stanley Lifestyles is one of India’s largest integrated super-premium and luxury furniture manufacturers and retailers. The company operates three manufacturing facilities in Bengaluru spanning over 300,000 square feet and maintains 72 retail outlets across major Indian cities through company-owned and franchise formats.

Stanley Lifestyles reported a significant contraction in profitability for the quarter ended June 30, 2026, with consolidated net profit falling 91.6% year-on-year to ₹65 lakh. The decline was primarily driven by delays in B2B shipments due to international freight disruptions and a challenging environment in the premium residential retail sector, where customer conversions slowed amid delayed home handovers.

Revenue from operations dropped 8.6% to ₹993.5 crore (₹9,935 lakh) from ₹1,086.7 crore (₹10,867 lakh) in Q1FY26. The Board of Directors approved the unaudited standalone and consolidated figures in a meeting held on August 13, 2026. The company also released an investor presentation detailing operational highlights and strategic initiatives for the quarter.

Financial Performance

Despite the revenue decline, Stanley Lifestyles managed to stabilize its gross margin at 57.5% in Q1FY27, compared to 57.4% in the corresponding quarter last year. This resilience was attributed to ongoing localization efforts and restructuring initiatives across the business. EBITDA stood at ₹172.2 crore (₹1,722 lakh), representing a margin of 17.3%, down from 20.7% in Q1FY26.

The sharp drop in net profit was exacerbated by higher depreciation charges, which rose to ₹153.5 crore from ₹118.3 crore in the prior year, and increased finance costs of ₹56.8 crore. Other income contributed ₹62.9 crore to the bottom line, up from ₹46.2 crore previously.

Operational Updates & Strategy

The company’s retail business faced headwinds as nearly 80-85% of its customers are new home buyers, a segment affected by 12-18 month delays in residential project handovers across India. Additionally, geopolitical tensions in West Asia impacted construction material availability. However, management noted that customer enquiries and store traction remain encouraging.

In terms of retail network management, Stanley Lifestyles adopted a selective approach during the quarter:

• Opened three new stores in Bengaluru (two in Varthur, one on Mysore Road).
• Closed four stores (three in Bengaluru, one in Mumbai) as certain catchments matured and residential development cycles completed.
• Launched its first international store, Stanley Boutique Homes, in Colombo, Sri Lanka, in July 2026, via a joint venture with Singer (Sri Lanka) PLC.
• Expanded in India with a new Sofas & More store in Jaipur, marking entry into Rajasthan.

What the Numbers Show

The divergence between stable gross margins and collapsing net profit highlights significant fixed cost leverage challenges. While gross margin remained flat at ~57%, EBITDA margin contracted by over 300 basis points, and PAT margin plummeted from 7.2% to 0.7%. This indicates that operating expenses, particularly depreciation and finance costs, are not scaling down proportionally with revenue declines. Furthermore, the B2B segment, which contributed 26.7% of revenue in Q1FY27 (down from 29.8% in Q1FY26), remains vulnerable to external logistics shocks, whereas the Company Owned Company Operated (COCO) channel share increased to 64.6%, suggesting a shift toward more controlled distribution channels despite overall volume pressure.

The financial results, along with the Limited Review Report, have been posted on the company’s website pursuant to Regulation 33 read with Regulation 47(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE01A001028/cd398d41-ee56-48ce-84e8-3103ee5c3b5e.pdf