Stanley Lifestyles , a prominent player in the Indian luxury furniture market, has reported a solid start to the fiscal year 2026 with a 7.9% year-on-year increase in revenue from operations for the quarter ended June 30, 2025. The company's total revenue reached Rs 1,087.00 million, driven by strong performance in both retail and B2B segments.

Retail Business Leads Growth

The retail business emerged as the star performer, contributing Rs 640.00 million to the total revenue, marking a significant 25.2% year-on-year growth. This surge was primarily led by two key brands:

• Stanley Level Next: Grew by 20%
• Sofas & More: Experienced a remarkable 50.7% growth

As of June 30, 2025, Stanley Lifestyles operates a total of 68 stores, comprising 43 Company-Owned Company-Operated (COCO) stores and 25 Franchisee-Owned Franchisee-Operated (FOFO) stores. The COCO stores accounted for 60% of the revenue in Q1 FY26.

Expansion and Strategic Moves

The company continued its expansion strategy during the quarter:

• Added two new Sofas & More stores in Surat and Mangalore
• Stanley Retail Limited acquired complete ownership of Shrasta Decor Private Limited, strengthening its presence in Hyderabad
• Plans to open 15 new stores in FY26, focusing on high-potential real estate catchments in major cities and emerging urban clusters

Financial Highlights

The company's focus on localization and improving manufacturing efficiency has allowed it to optimize production costs while broadening the product mix, resulting in significant margin expansion.

Management Commentary

Sunil Suresh, Managing Director of Stanley Lifestyles, commented on the results: "We started FY '26 on a positive note with strong growth in both retail and B2B segments. Our focus on localization and improving efficiency in manufacturing have allowed us to optimize production costs while broadening the product mix."

He added, "While broader market sentiment remains cautious due to global trade developments and US tariff policies, our product portfolio is not directly exposed to the categories impacted by the US tariffs. We do not expect any material impact on our business from these changes."

Outlook

Stanley Lifestyles remains optimistic about its future growth prospects, citing several factors:

1. Continued expansion of the COCO store format
2. Focus on offering curated collections aligning with evolving preferences of affluent luxury homemakers
3. Positive impact expected from recent raids conducted by DRI on luxury furniture importers who were under-invoicing
4. Passage of the gazette for Quality Control Order (QCO) on imported furniture

With its differentiated brand portfolio, integrated manufacturing capabilities, and growing presence in India's luxury furniture market, Stanley Lifestyles is well-positioned to capture the opportunities ahead in FY26.

Leadership Changes

The company also announced the appointment of J.K. Sharath as the new Group CFO, expected to play a key role in driving the company's transformation agenda and lead Stanley into its next chapter of growth and long-term value creation.

As Stanley Lifestyles continues to navigate the evolving luxury furniture market in India, its strategic focus on retail expansion, manufacturing efficiency, and market penetration sets a strong foundation for sustained growth in the coming quarters.

Stanley Lifestyles Limited , a prominent player in the lifestyle products industry, has disclosed receiving Show Cause Notices from the Registrar of Companies (RoC) Bangalore against directors and an ex-director of its step-down subsidiary, Sana Lifestyles Limited. The notices allege violations of Sections 188 and 184 of the Companies Act, 2013, concerning substantial related party transactions during the fiscal years 2019-20 and 2020-21.

Allegations and Violations

The RoC Bangalore has raised concerns over transactions undertaken without proper Board approvals and inadequate disclosure in AOC-2 (Annual Report on Related Party Transactions) forms. The authority has directed the submission of domestic transfer pricing audit reports and proof that these transactions were conducted on an arm's length basis.

Potential Financial Implications

While no penalties have been imposed at this stage, the expected financial implications could be significant:

Company's Response

Stanley Lifestyles Limited has stated that the matter is currently under consideration. The step-down subsidiary, Sana Lifestyles Limited, is evaluating appropriate representations to address the allegations.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Stanley Lifestyles Limited has disclosed this information to the National Stock Exchange of India Limited (NSE) and BSE Limited.

Impact on Investors

While the potential penalties are not substantial relative to the size of a listed company, this development raises questions about corporate governance practices within the Stanley Lifestyles group. Investors will likely be watching closely for any further developments and the company's response to these allegations.

The outcome of this regulatory scrutiny could have implications for the company's reputation and potentially impact investor confidence. Stakeholders will be keen to see how Stanley Lifestyles addresses these compliance issues and strengthens its internal controls to prevent such occurrences in the future.