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Bengaluru: Luxury furniture designer Stanley Lifestyles Limited reported a 55.5% drop in net profit for the financial year 2026 to ₹130 crore as the company has faced major challenges with slowing B2B demand and heightened supply chain disruptions. Revenues were also down from ₹4,262 crore in FY25 to ₹4,193 crore this time, a 1.6% year on year decline. Despite that, the company has expanded its store network to 71 across its brands, as it aimed to boost its long term omni channel marketing strategy and scale up into newer geographies.
Squeezed by B2B Demand Slump & Logistics Issues
Stanley has been facing a combination of localised and macro market hurdles in the past year:
- The B2B Lag: The brand’s B2B hospitality and corporate supply vertical has faced softened demand mostly due to slower project completion timelines, delaying high volume furniture installations.
- Supply Chain Redirection: Specialised imports of hardware, wood and leather from Europe have seen higher input costs due to volatile freight rates and transit delays, forcing Stanley to raise prices.
- The Margin Compression: The company’s EBITDA margin contracted 7.8% year on year due to these challenges, besides increased employee costs from onboarding luxury design consultants.
“The management of the Company remains focused on strengthening the long-term foundation of the business through strategic expansion, operational consolidation, technology investments, and better control over customer experience.
During FY2026, the Company continued expanding its company-owned retail footprint across key luxury housing markets, progressed towards the proposed amalgamation of group entities into a single listed entity, and invested in digital and operational capabilities to build a scalable platform for future growth.
While profitability during the year was impacted by stores costs under gestation, expansion-related investments, leadership transition, and external headwinds including supply chain disruptions, delayed project handovers, and softer B2B demand in Q4 FY26, the underlying business fundamentals remain strong.
The Company entered FY2027 with its highest-ever order book of approximately ₹62 crore, supported by healthy traction in the full-home solutions segment and an improving competitive environment driven by localization and regulatory shifts.
With an expanding retail network, improved gross margins, disciplined capital allocation and a debt-free balance sheet, management remains confident about business stabilization over the coming quarters and the Company’s long-term growth prospects.” Mr Sunil Suresh, Chairman of Stanley Lifestyle, said in a press release.
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