Stanley Lifestyles’ margin recovers QoQ, but profit halves YoY
Revenue momentum improved sequentially, but expenses continued to outpace sales growth on a year-on-year basis.
Filed 12 Nov 2026, 20:45 IST · after market close · Stanley Lifestyles Ltd (STANLEY)
Key takeaways
- Consolidated operating margin recovered 1.25 percentage points QoQ to 18.58% as revenue grew +7.76% and expenses +6.14%.
- Year on year, revenue grew only +1.57% while expenses rose +8.15%, cutting operating margin by 4.95 percentage points and net profit by -51.17%.
- Other income equalled 133.8% of pre-tax profit, while the tax rate fell 45.93 percentage points QoQ to 18.16%.
Price around the results
Sequential recovery does not erase the YoY margin setback
Stanley Lifestyles reported consolidated Q2FY27 revenue growth of +1.57% YoY, while expenses rose +8.15%; the resulting cost mismatch reduced operating margin by 4.95 percentage points. QoQ momentum was better: revenue increased +7.76% against expense growth of +6.14%, lifting operating margin by 1.25 percentage points. The company’s 18.58% operating margin was 7.35 percentage points above the 11.23% median for 329 Consumer Discretionary peers that had reported.
Margin recovery is still below last year’s level
Operating margin has risen from 12.52% in Q3FY26 to 18.58% in Q2FY27, but remains below 23.53% in Q2FY26. The sequential improvement came despite interest expense rising +6.69%; depreciation declined -2.02% QoQ. On a YoY basis, depreciation increased +5.17%, adding to the pressure below operating profit.
Lower tax rate supported the sequential profit rebound
Net profit rose +350.77% QoQ as the tax rate fell 45.93 percentage points from 64.09% to 18.16%, even though interest expense increased +6.69%. The YoY tax-rate decline of 7.77 percentage points was not enough to offset weaker operating profit, leaving net profit down -51.17%. Other income represented 133.8% of pre-tax profit, making the reported pre-tax result heavily reliant on non-operating income in this quarter.
Results were filed after market close
The consolidated results were filed after market close, so there is no reported market reaction yet. Across the eight-result reaction history, the stock fell after six results and rose after two, with a median absolute move of 6.24%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹107 cr | ₹99 cr | +7.76% | +1.57% |
| Other income | ₹5 cr | ₹6 cr | -14.77% | -6.08% |
| Expenses | ₹87 cr | ₹82 cr | +6.14% | +8.15% |
| Operating profit | ₹20 cr | ₹17 cr | +15.51% | -19.80% |
| Operating margin (%) | 18.58% | 17.33% | — | — |
| Interest | ₹6 cr | ₹6 cr | +6.69% | -19.20% |
| Depreciation | ₹15 cr | ₹15 cr | -2.02% | +5.17% |
| Profit before tax | ₹4 cr | ₹2 cr | +97.79% | -55.80% |
| Tax | ₹1 cr | ₹1 cr | -43.97% | -69.05% |
| Net profit | ₹3 cr | ₹1 cr | +350.77% | -51.17% |
| EPS (₹) | ₹0.49 | ₹0.08 | +512.50% | -50.00% |
Operating margin of 18.58% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 18.58% after its 1.25-percentage-point QoQ recovery.
- Whether expense growth narrows from +8.15% YoY toward revenue growth of +1.57%.
- Whether other income remains above 133.8% of pre-tax profit and how the tax rate moves from 18.16%.