Stanley Lifestyles Faces ₹1.63 Cr Tax Exposure Following Audit Review

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Stanley Lifestyles Ltd, India’s leading luxury furniture brand, has disclosed a proposed tax liability of ₹16.3 million (₹1.63 crore) following a recent tax audit report. The development comes shortly after the company’s successful IPO debut and reflects the routine scrutiny that accompanies newly listed entities.

Key Highlights:

- The tax audit report has proposed a liability of ₹16.3 million, which pertains to past assessment periods and is currently under review by the company’s finance and legal teams.
- The proposed liability is not yet final and may be subject to revision or contestation depending on the outcome of further assessments or clarifications sought by tax authorities.
- Stanley Lifestyles has stated that it maintains a conservative and compliant tax policy and will respond to the audit findings in accordance with applicable laws.

Strategic Context:

- The proposed liability is not expected to materially impact the company’s financials, given its strong liquidity position and consistent profitability.
- As of FY24, Stanley Lifestyles reported robust growth with a 147.3% PAT CAGR and 41.8% EBITDA CAGR over FY21–FY24, supported by its vertically integrated operations and premium brand positioning.
- The company operates over 60 stores across India and has been expanding aggressively through multiple retail formats, including Stanley Level Next and Sofas & More.

Outlook: While the tax audit proposal introduces a short-term compliance task, it is unlikely to derail Stanley’s growth trajectory. Investors and analysts will monitor the final resolution, but the company’s fundamentals remain strong, underpinned by rising demand in India’s luxury home segment.

Sources: Economic Times, ICRA Ratings, Stanley Lifestyles Ltd. Corporate Filings