Stanza Living has emerged as a key player in managed accommodation for students and working professionals, achieving profitability in the fiscal year ending March 2025. Despite this success, Stanza Living did not record any revenue growth during the same period. According to a consolidated financial statement obtained from the Registrar of Companies, revenue from operations dropped by 6.6%, falling to Rs 545.5 crore in FY25 from Rs 584 crore in FY24.
Stanza Living provides seamless housing solutions for students and young professionals moving to new cities. The revenue from these accommodation services remains the primary income source for the company. When including non-operating income of Rs 278.5 crore, Stanza Living’s total income increased to Rs 824 crore in FY25.
Notably, within the Rs 278.5 crore of other income, Rs 277 crore was recorded as miscellaneous income in FY25, though specific details regarding this amount were absent from the financial statements.
Examining the expenses, depreciation related to leases constituted the largest cost centre for Stanza Living, decreasing by 18% to Rs 215 crore in FY25. Additionally, finance costs fell by 27% to Rs 128 crore, while employee benefit expenses saw a significant decline of 41% to Rs 85 crore during the year.
Electricity costs decreased to Rs 46 crore from Rs 56 crore in FY24, whereas rent expenses rose to Rs 18 crore from Rs 6.5 crore in the previous fiscal year. Overall, Stanza Living’s total expenses fell by 21.5% to Rs 683 crore in FY25, down from Rs 870 crore in FY24.
The improvement in cost structure, combined with the undisclosed income of Rs 277 crore, contributed to Stanza Living reporting a profit of Rs 130 crore in FY25, a considerable turnaround from a loss of Rs 273 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin were recorded at -2.68% and 35.66%, respectively.
On a unit basis, Stanza Living expended Rs 1.25 in order to earn a single rupee during the fiscal year. Cash and bank balances stood at Rs 5 crore, while current assets amounted to Rs 108 crore at the close of FY25.
To date, Stanza Living has secured approximately $231 million in funding, with Peak XV Partners and Accel as notable lead investors. The company faces competition from other players in the market, including Zolo, Colive, and PadSplit.
This milestone of achieving profitability signals a noteworthy transition for Stanza Living following multiple years of losses. Operating within a highly competitive managed accommodation sector, the company’s sustained profitability will rely on its capacity to uphold stable occupancy rates and execute efficient expansion strategies. The results in the forthcoming years will reveal whether the positive shift noted in FY25 can evolve into a more stable and consistent financial path.
