Stanza Living, a managed accommodation platform for students and working professionals, reported profitability in FY25 after several years of losses, aided largely by significant non-operating income. However, the company’s core operating revenue declined during the same period.
According to consolidated financial statements filed with the Registrar of Companies (RoC), Stanza Living’s revenue from operations fell 6.6% to ₹545.5 crore in FY25 from ₹584 crore in FY24.
Other Income Drives Profitability
The company generates revenue primarily from managed accommodation services for students and young professionals relocating to major cities. This remained its sole operating income stream.
Including non-operating income of ₹278.5 crore, Stanza Living’s total income rose to ₹824 crore in FY25. Notably, ₹277 crore of this amount was recorded as miscellaneous income, though the company did not disclose detailed sources for this figure in its financial statements.
Cost Optimisation Improves Financials
The company also reduced its expenses significantly during the fiscal year. Depreciation expenses related to lease costs remained the largest component but declined 18% to ₹215 crore. Finance costs dropped 27% to ₹128 crore, while employee benefit expenses fell sharply by 41% to ₹85 crore.
Electricity expenses decreased to ₹46 crore from ₹56 crore in FY24, although rent expenses rose to ₹18 crore from ₹6.5 crore.
Overall, Stanza Living reduced total expenditure by 21.5% to ₹683 crore in FY25 from ₹870 crore in the previous fiscal year.
Return to Profit
The combined impact of lower expenses and substantial other income helped the company report a net profit of ₹130 crore in FY25, compared with a loss of ₹273 crore in FY24. Its EBITDA margin stood at 35.66%, while ROCE was reported at -2.68%.
On a unit basis, the company spent ₹1.25 to earn every rupee of operating revenue.
Outlook
Stanza Living has raised around $231 million in funding to date, with Peak XV Partners and Accel among its key investors.
The company competes with players such as Zolo, Colive, and PadSplit in India’s managed accommodation sector. While the shift to profitability marks a notable milestone, sustaining margins will depend on stable occupancy levels and disciplined expansion in the coming years.
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