Stanley Lifestyles Limited has submitted its quarterly compliance report to stock exchanges, confirming no deviation in the utilization of Initial Public Offering proceeds for the quarter ended 31st December 2025. The statement was filed under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

IPO Proceeds Overview

The company's IPO, completed on 28th June 2024, originally raised INR 181.085 crore. However, the net proceeds have increased to INR 183.937 crore as of 31st December 2025, representing an enhancement of INR 2.852 crore due to actual issue-related expenses being lower than initially estimated.

Fund Utilization Status

The company reported no deviation or variation in the use of funds raised through the IPO. The proceeds continue to be allocated across the originally planned objectives without any changes to the terms of contract or objects approved by shareholders.

Subsidiary Investment Focus

The largest portion of IPO proceeds has been allocated toward subsidiary investments for store expansion and renovation. The funds are being utilized for opening new stores under the formats of "Stanley Level Next", "Stanley Boutique", and "Sofas & More by Stanley". Additionally, the company is investing in anchor stores and renovating existing retail outlets under these brand formats.

Compliance and Monitoring

The fund utilization is being monitored by ICRA Limited as the designated monitoring agency. Both the Audit Committee and auditors have provided nil comments on the fund utilization, indicating compliance with the original IPO objectives. The revision in general corporate purposes allocation reflects the actual lower issue-related expenses compared to estimates.

Corporate Governance

The quarterly statement was signed by Rasmi Ranjan Naik, Company Secretary & Compliance Officer, and submitted to both NSE (Symbol: STANLEY) and BSE (Code: 544202). The company continues to maintain transparency in IPO proceeds utilization through regular quarterly disclosures as mandated by SEBI regulations.

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.