Stanza Living, a Gurugram-based managed accommodation provider, returned to profitability in FY25, reporting a net profit of ₹130 crore driven largely by a substantial increase in non-operating income even as revenue from core operations fell modestly.
Revenue and overall income
For the year ended March 2025, the company recorded revenue from operations of ₹545.5 crore, down 6.6% from ₹584 crore in FY24. Stanza’s primary revenue streams remain furnished housing, food services, housekeeping and community experiences for students and young professionals across major Indian cities.
Despite the decline in operational receipts, total income rose to about ₹824 crore in FY25, supported chiefly by a significant contribution to other income.
Other income drives the turnaround
Stanza reported approximately ₹277 crore under miscellaneous or other income, a large portion of its non-operating earnings for the year. The company’s filings do not fully detail the components of this item, but it was a decisive factor in lifting overall income and offsetting the fall in core revenues.
Cost control and expense trends
Management also reduced key expense lines. Depreciation related to lease obligations—which remained the single largest expense—declined about 18% to ₹215 crore. Finance costs fell nearly 27% to ₹128 crore.
Employee benefit expenses dropped sharply, by around 41% to ₹85 crore, reflecting efforts to rationalise staffing and operating costs as part of a broader efficiency drive.
Profitability and implications
Supported by higher other income and lower expenses, Stanza shifted from a net loss of ₹273 crore in FY24 to a net profit of ₹130 crore in FY25. The improvement underscores management’s cost-reduction measures and financial restructuring.
However, the reliance on non-operating income for the turnaround suggests that sustaining profitability will depend on strengthening core operating performance and increasing occupancy and yield across its portfolio.
Sector context and outlook
The organised managed accommodation market in India continues to expand as migration of students and young professionals to urban centres grows. Providers such as Stanza Living are positioning to capitalise on demand for integrated, service-led housing solutions.
Going forward, Stanza is expected to focus on raising occupancy rates, deepening presence in key cities and improving operational revenue to build a more resilient and recurring-profit business model.
