Managed accommodation startup Stanza Living has reported profitability for the financial year ending March 2025 (FY25), marking a major turnaround after reporting losses in the previous year. The Gurugram-based company managed to enter the profit zone primarily due to a significant boost in other income, even as its core operating revenue declined slightly.
Stanza Living is known for providing managed housing solutions for students and young professionals across several major cities in India. Over the past few years, the company has focused on improving operational efficiency and restructuring costs to strengthen its financial position.
Revenue from Operations Sees a Slight Dip
According to the company’s financial filings, Stanza Living recorded ₹545.5 crore in revenue from operations in FY25, which represents a 6.6% decline compared to ₹584 crore in FY24.
The company earns the majority of its revenue by offering fully managed accommodation services that include furnished living spaces, food services, housekeeping, and community experiences for residents. These services remain the primary source of income for the startup.
Despite the dip in operational revenue, the company’s overall income rose significantly to around ₹824 crore during FY25. The increase was mainly driven by a large contribution from non-operating income.
₹277 Crore Other Income Boosts Financial Performance
One of the most notable aspects of the company’s financial performance was the ₹277 crore recorded under miscellaneous or other income. This amount made up a large share of the company’s non-operating earnings and played a key role in improving the overall financial results.
Although the exact sources of this miscellaneous income were not clearly detailed in the financial statements, it significantly strengthened the company’s total income for the year and helped offset the impact of reduced operating revenue.
Cost Reductions Support Profitability
Alongside the increase in other income, Stanza Living also managed to cut several major expenses during the year.
Depreciation related to lease obligations remained the company’s largest expense but declined by about 18% to ₹215 crore in FY25. The company also reduced its finance costs by nearly 27%, bringing them down to ₹128 crore.
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Employee benefit expenses saw a substantial drop as well, falling by around 41% to ₹85 crore. The reduction indicates that the company has been actively working on controlling operational costs and improving efficiency across its operations.
Company Reports ₹130 Crore Profit in FY25
Supported by the rise in other income and lower expenses, Stanza Living reported a net profit of ₹130 crore in FY25. This represents a major improvement compared to a net loss of ₹273 crore in FY24.
The turnaround highlights the company’s efforts to streamline operations and strengthen its financial structure. However, the reliance on non-operating income for profitability also suggests that continued improvement in core business performance will be important going forward.
Outlook for Stanza Living
The managed accommodation sector in India continues to grow as more students and working professionals move to large cities for education and employment. Companies like Stanza Living are trying to tap into this demand by offering organised, service-based housing solutions.
Going ahead, Stanza Living is likely to focus on increasing occupancy rates, expanding its presence in key urban markets, and improving its core operating revenue to sustain profitability in the long term.