Lifestyle’s profits climb, but mall crunch may slow expansion in 2026

Updated: November 17, 2025 04:51

Image Source: Indian Aparrel

Lifestyle International, part of Dubai’s Landmark Group, reported a 42% jump in net profit to ₹415 crore in FY2025 despite modest sales growth. However, CEO Devarajan Iyer has warned that expansion could slow next year due to a shortage of new premium malls, even as profitability and brand strength remain solid.

Profitability up, expansion outlook cautious

Lifestyle International, the department store chain known for apparel, fashion, and home products, has posted strong financial results but tempered its growth outlook. While profits surged, the company faces structural challenges in India’s retail real estate pipeline that could constrain store openings in 2026.

Key Highlights:

Profit surge: Net profit rose 42% to ₹415 crore in FY2025, even as sales grew modestly by 6% to ₹12,031 crore.

Expansion model: Lifestyle typically adds 12–14 new stores annually, each spanning over 40,000 sq. ft., but this pace may slow next year.

Mall supply crunch: CEO Devarajan Iyer noted that leading developers have no prime mall projects in the pipeline, limiting opportunities for large-format retail expansion.

Portfolio strength: The company operates Lifestyle department stores, Max value-format outlets, and Home Centre, giving it a diversified retail presence.

Tier-II strategy: Smaller Max stores have allowed Lifestyle to test and expand into tier-II and tier-III cities, balancing growth beyond premium malls.

E-commerce caution: Lifestyle plans to remain measured in online expansion, focusing instead on profitability and physical retail dominance.

Broader implications for India’s retail sector

Real estate bottleneck: The slowdown in premium mall development highlights a structural challenge for large-format retailers, potentially shifting focus to smaller formats or omnichannel strategies.

Consumer demand: Despite global headwinds, India’s retail sector remains resilient, with steady demand for fashion and lifestyle products.

Competitive landscape: Lifestyle’s profitability surge strengthens its position against rivals like Shoppers Stop and Reliance Trends, but expansion constraints could affect market share growth.

Future outlook: The company’s cautious stance signals a pivot toward efficiency and profitability, rather than aggressive footprint expansion, in the near term.

Sources: ETRetail (Economic Times); Apparel Resources

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