Managed accommodation platform Stanza Living has finally reported profitability for the financial year ending March 2025. The company posted a profit of Rs 130 crore in FY25, marking a major turnaround after years of losses.
However, the profitability came despite a drop in its core operating revenue during the same period. A significant portion of the profit was driven by other income worth Rs 278.5 crore, including a large miscellaneous income component that was not fully explained in the company’s financial filings.
The development highlights a notable financial shift for the student housing startup as it navigates a competitive market and attempts to build a sustainable business model.
Revenue Declines Slightly in FY25
According to the company’s consolidated financial statements sourced from the Registrar of Companies, Stanza Living reported operating revenue of Rs 545.5 crore in FY25.
This represents a 6.6 percent decline compared to Rs 584 crore in FY24.
Stanza Living generates revenue primarily through its managed accommodation services. The platform provides housing solutions for students and young professionals who move to new cities for education or work.
These services remained the company’s only operating revenue stream during the year.
Despite the drop in core revenue, the company’s total income increased significantly due to non-operating income.
Other Income Drives Total Income Growth
A major highlight in Stanza Living’s financials was the sharp rise in other income.
The company reported Rs 278.5 crore in other income during FY25, which pushed its total income to Rs 824 crore for the year.
Out of this amount, Rs 277 crore was recorded as miscellaneous income.
However, the financial statements did not provide details about the source of this miscellaneous income, making it one of the most notable aspects of the company’s financial report.
This large non-operating income played a key role in helping the company report profitability for the year.
Expenses Decline Significantly
Along with additional income, Stanza Living also managed to reduce its overall expenses.
The company’s total expenses declined by 21.5 percent, dropping from Rs 870 crore in FY24 to Rs 683 crore in FY25.
Several cost categories saw major reductions during the year.
Depreciation Remains the Largest Cost
Depreciation expenses related to leased properties continued to be the largest cost component for the company.
However, this expense fell by 18 percent to Rs 215 crore in FY25.
Since Stanza Living operates leased residential properties across cities, depreciation related to these leases forms a significant part of its financial structure.
Finance Costs Drop
The company also managed to lower its finance costs.
Finance expenses declined by 27 percent to Rs 128 crore during FY25. Lower interest obligations helped improve the company’s cost structure.
Employee Expenses See Sharp Reduction
Employee benefit expenses recorded one of the biggest declines during the year.
These costs fell by 41 percent to Rs 85 crore, indicating tighter operational control and possibly organizational restructuring.
Utility and Rental Expenses
Electricity expenses dropped from Rs 56 crore in FY24 to Rs 46 crore in FY25.
However, rent expenses increased significantly, rising to Rs 18 crore compared to Rs 6.5 crore in the previous financial year.
Profitability After Years of Losses
The combination of lower expenses and additional income helped Stanza Living achieve a major financial turnaround.
The company reported a profit of Rs 130 crore in FY25.
This marks a significant improvement compared to FY24, when the company recorded a loss of Rs 273 crore.
Despite the positive shift, some financial indicators remain under pressure.
The company’s Return on Capital Employed (ROCE) stood at negative 2.68 percent, while its EBITDA margin was reported at 35.66 percent.
On a unit economics basis, the company spent Rs 1.25 to earn every rupee during the fiscal year, indicating that operational efficiency still needs improvement.
Financial Position and Assets
At the end of FY25, Stanza Living reported cash and bank balances of around Rs 5 crore.
The company’s total current assets stood at Rs 108 crore.
While the company has achieved profitability on paper, maintaining strong liquidity and improving operating efficiency will remain important priorities going forward.
Funding and Investors
Stanza Living has raised approximately $231 million in funding since its inception.
The startup is backed by several well-known venture capital firms, including Peak XV Partners and Accel, which have been among its key investors.
The company has used the funding to expand its presence in multiple Indian cities and build a large network of managed accommodation properties.
Competition in the Managed Accommodation Market
Stanza Living operates in India’s rapidly growing managed accommodation sector.
The company provides fully managed residential spaces designed for students and young professionals who move to different cities for studies or jobs.
This segment has seen increasing demand due to urban migration and the rising number of students and professionals relocating to metro cities.
However, competition in the market is also intensifying.
Stanza Living faces competition from companies such as Zolo, Colive and PadSplit, which offer similar co-living and managed housing solutions.
To stay ahead, companies in this space must maintain high occupancy levels, provide consistent services, and manage property costs efficiently.
The Road Ahead
The shift to profitability in FY25 represents an important milestone for Stanza Living after several years of losses.
However, the sustainability of this profitability will depend on multiple factors.
The company will need to stabilize its core revenue growth, maintain high occupancy across its properties, and continue improving its cost efficiency.
Additionally, clarity around the large miscellaneous income reported in FY25 may attract attention from analysts and industry observers.
As the managed accommodation sector continues to grow in India, Stanza Living’s performance in the coming years will determine whether the company can maintain a stable and consistent financial trajectory.
