Stanley Lifesty. Q1 FY27 Results (NSE: STANLEY)
Signal: Revenue declined
The read
The key inflection is a second consecutive quarter of severe consolidated deterioration: revenue fell 8.6% YoY to ₹99.35 Cr after Q4FY26's 10.1% decline, EBITDA margin fell to 23.7% from the prior-year level, and PAT dropped 93.8% to ₹0.48 Cr; standalone growth of 9.1% did not translate into group earnings because subsidiaries dragged the consolidated result and other income/exceptional items distorted PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹99.35 Cr | -8.6% | N/A |
| EBIT | ₹8.16 Cr | -46.7% | |
| Net profit | ₹0.48 Cr | -93.8% | |
| EPS | ₹0.08 | -94.2% | |
| EBIT margin | 23.7% |
P&L walk
Consolidated revenue was ₹99.35 Cr, down 8.6% YoY, EBITDA was ₹23.51 Cr, down 13.2% with margin at 23.7%, EBIT fell 46.7% to ₹8.16 Cr, and PAT fell 93.8% to ₹0.48 Cr as other income of ₹6.29 Cr and exceptional items materially distorted the low ₹1.81 Cr PBT.
Segments
The group structure is the key divergence: standalone revenue grew 9.1% to ₹55.18 Cr and PAT was ₹3.85 Cr, versus consolidated revenue declining 8.6% to ₹99.35 Cr and PAT of only ₹0.48 Cr, showing subsidiaries materially diluted group performance.
Key positives
- Standalone revenue grew 9.1% YoY to ₹55.18 Cr, substantially better than consolidated revenue growth of -8.6% and suggesting the parent business retained some demand momentum.
- Consolidated EBITDA remained positive at ₹23.51 Cr with a 23.7% margin despite revenue declining 8.6% YoY.
- EPS decline of 94.2% broadly tracked PAT decline of 93.8%, providing no clear evidence of incremental dilution in this quarter.
Key concerns
- Consolidated revenue declined 8.6% YoY to ₹99.35 Cr, extending the recent slowdown after Q4FY26 revenue fell 10.1% YoY.
- Consolidated EBITDA declined 13.2% to ₹23.51 Cr and EBITDA margin fell 126bps YoY to 23.7%, while EBIT declined 46.7% to ₹8.16 Cr.
- Standalone revenue grew 9.1% to ₹55.18 Cr but standalone EBITDA increased only 0.4% to ₹11.55 Cr and margin fell 182bps to 20.9%, indicating weak operating conversion.
Earnings quality: includes other income and an exceptional item
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