Stanley Lifestyles Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025. The company reported revenue from operations of ₹1,038 mn in Q3FY26, representing a decline of 5.4% year-on-year, primarily due to near-term demand softness in the luxury furniture segment.

Q3FY26 Financial Performance

The third quarter results reflect challenging market conditions with subdued performance across key metrics:

The company reported a net loss of ₹2 mn in Q3FY26 compared to a profit of ₹89 mn in the corresponding quarter last year. EBITDA margins contracted significantly by 680 basis points to 11.9% from 18.7% in Q3FY25.

Nine Months FY26 Performance

Despite quarterly challenges, the nine-month performance showed resilience in certain areas:

The company achieved 6.2% growth in gross profit for 9M FY26, supported by improved product mix and operational efficiencies. Revenue growth of 1.4% reflects evolving consumer preferences with a shift toward value-oriented products.

Management Commentary

Managing Director Sunil Suresh commented on the performance, stating that the resilient gross profit growth of 6.2% in 9M FY26 reflects the underlying strength of the brand and operating model. He attributed the bottom-line impact to strategic investments in strengthening leadership and expanding retail footprint, resulting in higher near-term costs.

The company highlighted that both manufacturing facilities have received Bureau of Indian Standards (BIS) certification, positioning them advantageously for the upcoming Furniture Quality Control Order (QCO) implementation expected by the end of this financial year.

Earnings Call Details

The company conducted its earnings call on February 13, 2026, at 5:00 PM IST, hosted by Emkay Global Financial Services Ltd. Senior management participants included Chairman Sunil Suresh, Managing Director Venkataramana Gorti, Group CFO JK Sharatha, and CEO of Retail business Abhijeet Sonar.

Company Overview

Stanley Lifestyles Limited operates as a leading luxury furniture company with brands including Stanley Level Next, Stanley Boutique, and Sofas & More. The company maintains two manufacturing facilities in Bengaluru spanning over 300,000 square feet and operates 68 retail outlets across major Indian cities through company-owned and franchise formats.

Stanley Lifestyles Limited has executed a comprehensive license agreement with Hilker Far East Limited and Stanley Retail Limited on December 22, 2025. The agreement was disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighting its strategic importance for the company's business expansion.

Agreement Structure and Parties

The three-party agreement involves distinct roles for each entity, with Hilker Far East Limited serving as the licensor. Under this arrangement, both Stanley Retail Limited and Stanley Lifestyles Limited will obtain exclusive rights to manufacture, retail, and distribute Hilker products for an agreed royalty.

Business Relationship and Structure

Stanley Retail Limited operates as a wholly-owned subsidiary of Stanley Lifestyles Limited, creating an integrated business structure for the licensing arrangement. The companies have confirmed that there is no direct relationship between Hilker Far East Limited and the Stanley group entities, establishing this as an arm's length transaction.

Regulatory Compliance and Governance

The transaction between Stanley Retail Limited and Stanley Lifestyles Limited will be conducted as a related party transaction on an arm's length basis, ensuring compliance with regulatory requirements. Both companies share common directors in accordance with SEBI regulations, with management confirming no potential conflict of interest arising from the agreement structure.

This licensing agreement represents a strategic move for Stanley Lifestyles to expand its product portfolio and manufacturing capabilities through exclusive rights to Hilker products, potentially strengthening its position in the consumer durables sector.