Remember when US tariffs were supposed to crash Indian exports? Turns out, luxury couches in Bangalore don’t care. Stanley Lifestyles, India’s self-declared “Hermès of sofas,” kicked off FY26 with growth, margin gains, and a Hyderabad land grab.
Revenue touched ₹108.7 crore in Q1 (+7.9% YoY). Retail (COCO stores) soared 25%, B2B jumped 27%, but the FOFO franchise channel flopped thanks to a deadweight brand (D8) exiting. Gross margin expanded 428 bps to 57.4%, EBITDA rose 11.9% to ₹22.5 crore, and PAT doubled to ₹7.8 crore (7.2% margin). Basically, premium Indians still buy sofas—even if they wait for their luxury flats to get handed over.
The catch? Franchise revenues collapsed 40%. Management blamed one brand’s closure, but promised Hyderabad expansion (3 new COCO stores) will restore balance.
Stick around—things get spicier two scrolls down.
AT A GLANCE
• Revenue up 7.9% YoY – inflation-beating, not Netflix-binge-worthy• Retail (COCO) ₹64 cr (+25%) – Bangalore aunty still loves leather couches• B2B/OEM ₹28.3 cr (+27%) – contract manufacturing held up despite US tariffs• FOFO down 40% – blame D8, not the furniture gods• EBITDA ₹22.5 cr (+12%) – margin up 428 bps on localization• PAT doubled to ₹7.8 cr – the couch is paying rent
MANAGEMENT’S KEY COMMENTARY
- “Luxury housing sales >₹10 cr doubled YoY.”→ Translation: Villas keep selling, so sofas will too.
- “All new stores from FY25 are breakeven.”→ Translation: Location > Luck; we finally got both right.
- “COCO stores now 60% of revenue.”→ Translation: If you want control, stop trusting franchise cousins.
- “Gross margins expanded 428 bps.”→ Translation: Local leather > imported Italian excuses.
- “Hyderabad is as big
- as Bangalore for us.”→ Translation: Gachibowli has more villas than Koramangala has cafés.
- “We remain unaffected by US tariffs.”→ Translation: Indians don’t import their sofas from Uncle Sam.
- “QCO on import furniture is positive for us.”→ Translation: Government just made under-invoicing less fun.
NUMBERS DECODED
| Revenue – The Hero | EBITDA – The Sidekick | Margins – The Drama Queen |
|---|---|---|
| ₹108.7 cr (+7.9% YoY) | ₹22.5 cr (+11.9%) | 57.4% gross margin (+428 bps) |
- Revenue: Retail & B2B pulled hard, FOFO dragged.
- EBITDA: Scale + localization = fatter cushion.
- Margins: Expanding like waistlines at wedding buffets.
ANALYST QUESTIONS
- On COCO growth: Mgmt said 25% YoY—the best in 2 years. Translation: finally, sales numbers match the store furniture size.
- On FOFO crash: Mgmt blamed D8 brand exit. Translation: “Not us, blame the ex.”
- On store economics: New COCO stores take 4 years to hit 100% potential. Translation: patience is a virtue, also an accounting line item.
- On Hyderabad buyout: Acquired partner, converting all to COCO. Translation: “No
