Stanley Lifestyles earnings calls.

Stanley Lifestyles reported flat financial performance in Q4 FY26 as management executed a strategic pivot from franchise to company-owned operations across India's top 6 metros. Revenue has remained unchanged since FY23, while EBITDA margins compressed sharply to ~7.2% from ~15% prior year due to new store gestation costs, IND AS lease front-loading (₹14.7 crore D&A impact), and B2B headwinds from Middle East geopolitical disruptions affecting shipments. Same-store sales grew 4% overallCurrent 4% overall. Reported change: +11.6% Stanley Next, +3.5% Sofas & More.—11.6% at Stanley Lifestyle Next and 3.5% at Sofas and More—but were offset by a 35% decline in franchisee business and loss of ₹18-20 crore from discontinued leather trading. Management highlighted gross margin improvement of 151 bps to 57.5% driven by best-cost country sourcing and localization (now 85-90% made in IndiaCurrent 85-90% made in India. Reported change: From 70% in prior period.). With 33 stores under 3 years and highest-ever order book of ₹62 croreCurrent ₹62 crore. Reported change: +₹17 crore vs Apr 2025., management targets double-digit revenue growth in FY27 and expects premium housing handovers to peak in FY28-29, benefiting their expanded COCO footprint. Key risks include execution on store maturation ROIs, B2B recovery dependency, and brand penetration challenges in newer markets like Delhi and Mumbai.