Stylam Industries Ltd

Certificate submission

• Certificate submitted for the reporting period.

Stylam Industries Limited — Trading Window closed from Thursday, October 01, 2026 until 48 hours after the declaration of the unaudited financial results of the Company for the quarter and half year ended September 30, 2026, to the Stock Exchanges.

Operational Update

• Commenced commercial production at Manak Tabra-2 plant from Sep 22, 2026.
• Existing capacity at Panchkula and Manak Tabra-1: ~8.60 crore sq m per annum.
• Current capacity utilization around 90%.
• Proposed capacity at Manak Tabra-2: ~5.25 crore sq m per annum.
• Investment: Rs 300 crore; funding via internal accruals.
• Rationale: to meet growing demand and support future growth.

AGM Details

• AGM held August 28, 2026 at 11:30 AM IST via VC/OAVM.
• Record date for voting: August 21, 2026.
• Total shareholders on record: 34,372.
• Meeting duration: 11:30 to 11:46 AM.

Key Resolutions

• Item 1: Adopt audited standalone and consolidated financial statements.
• Item 2: Manit Gupta re-appointed as Director by rotation.
• Item 3: Tirloki Nath Singla appointed Non-Executive Independent Director.
• Item 4: Amendment to Articles of Association approved.
• Item 5: Naruhiro Amada appointed Whole-time Director with remuneration.
• Item 6: Kenji Ebihara appointed Non-Executive Director.
• Item 7: Nobuyuki Omura appointed Non-Executive Director.
• Item 8: Yuji Iwatsuka appointed Non-Executive Director.
• Item 9: Koshi Suzuki appointed Non-Executive Director.
• Item 10: Makoto Tanaka appointed Non-Executive Director.
• Item 11: Adisak Thiaphairat appointed Non-Executive Director.
• Item 12: Increase in Jagdish Gupta's managerial remuneration.
• Item 13: Continuation of Jagdish Gupta as Managing Director.
• Item 14: Increase in Manit Gupta's managerial remuneration.
• Item 15: Re-appointment of Manit Gupta as Whole-time Director.

Voting Results

• Item 1 passed; 100.00% assent.
• Item 2 passed; 99.97% assent, 0.03% dissent.
• Item 3 passed; 92.55% assent, 7.45% dissent.
• Item 4 passed; 91.90% assent, 8.10% dissent.
• Item 5 passed; 99.98% assent, 0.02% dissent.
• Item 6 passed; 99.98% assent, 0.02% dissent.
• Item 7 passed; 99.98% assent, 0.02% dissent.
• Item 8 passed; 99.98% assent, 0.02% dissent.
• Item 9 passed; 99.98% assent, 0.02% dissent.
• Item 10 passed; 99.98% assent, 0.02% dissent.
• Item 11 passed; 99.98% assent, 0.02% dissent.
• Item 12 passed; 100.00% assent.
• Item 13 passed; 99.97% assent, 0.03% dissent.
• Item 14 passed; 100.00% assent.
• Item 15 passed; 99.97% assent, 0.03% dissent.

Dividend

• Dividend: No dividend proposed or declared.

Director Changes

• Manit Gupta: Re-appointed as Whole-time Director.
• Remuneration increases approved for Jagdish Gupta and Manit Gupta.
• Naruhiro Amada appointed Whole-time Director.
• Tirloki Nath Singla appointed Non-Executive Independent Director.
• Kenji Ebihara appointed Non-Executive Director.
• Nobuyuki Omura appointed Non-Executive Director.
• Yuji Iwatsuka appointed Non-Executive Director.
• Koshi Suzuki appointed Non-Executive Director.
• Makoto Tanaka appointed Non-Executive Director.
• Adisak Thiaphairat appointed Non-Executive Director.
• Jagdish Gupta continued as Managing Director per resolution.

Auditor Appointments

• Auditor appointments remained unchanged; no new statutory, secretarial, or cost auditor changes.

Material Related Party Transactions

• No material related party transactions were approved.

Other Material Approvals

• Amendment to Articles of Association approved.
• Remuneration increases for Jagdish Gupta and Manit Gupta approved.
• Continuation/renewal of Manit Gupta as MD and Whole-time Director approved.

AGM details

• Held on August 28, 2026 at 11:30 IST via VC/OAVM; concluded 11:46 IST.
• Chairman: Sunil Kumar Sood; 44 members attended.

Resolutions placed for voting

• Resolution 1 (Ordinary): Adoption of standalone and consolidated financial statements; results pending.
• Resolution 2 (Ordinary): Appointment of Manit Gupta by rotation; results pending.
• Resolution 3 (Special): Appointment of Tirloki Nath Singla as Independent Director; results pending.
• Resolution 4 (Special): Amend Articles of Association; results pending.
• Resolution 5 (Special): Appointment of Naruhiro Amada as Whole-time Director and remuneration; results pending.
• Resolution 6 (Ordinary): Appointment of Kenji Ebihara as Non-Executive Director; results pending.
• Resolution 7 (Ordinary): Appointment of Nobuyuki Omura as Non-Executive Director; results pending.
• Resolution 8 (Ordinary): Appointment of Yuji Iwatsuka as Non-Executive Director; results pending.
• Resolution 9 (Ordinary): Appointment of Koshi Suzuki as Non-Executive Director; results pending.
• Resolution 10 (Ordinary): Appointment of Makoto Tanaka as Non-Executive Director; results pending.
• Resolution 11 (Ordinary): Appointment of Adisak Thiaphairat as Non-Executive Director; results pending.
• Resolution 12 (Special): Increase in managerial remuneration of Jagdish Gupta, Managing Director; results pending.
• Resolution 13 (Special): Continuation of Jagdish Gupta as MD on attaining age 70; results pending.
• Resolution 14 (Special): Increase in remuneration of Manit Gupta, Whole Time Director; results pending.
• Resolution 15 (Special): Re-appointment of Manit Gupta as Whole-time Director; results pending.

Other material

• Auditor's and secretarial reports circulated; no qualifications noted.
• Scrutinizer to report results; declaration within two working days.

Financial performance

• FY26 standalone net revenue ₹1,129 crore, up 10% YoY from ₹1,025 crore.
• EBITDA ₹220 crore; EBITDA margin 20%.
• PAT ₹150 crore; PAT margin 13%.
• PBT ₹203 crore; PBT margin 18%.
• Basic EPS ₹88; Diluted ₹88 per share.
• Dividend not declared for FY25-26.

Operations and capacity

• Highest-ever laminate production in FY26: 72,658 MT.
• Laminates sheets produced: 12.67 million.
• New laminate size 1600x3660 mm for exports.
• Process Engineering Division established to address bottlenecks.
• IoT/AI integration; broader digitalization across plants.
• Launched 5x12 ft laminates; expanded design portfolio.

Growth and expansion

• Manak Tabra greenfield facility: ₹334 crore; production by mid-2026.
• Third greenfield laminate plant planned; capacity expansion ongoing.
• Automation and lean manufacturing continue to improve efficiency.
• Export master catalogue launched; Leader of Stylam loyalty programme introduced.

Markets and product mix

• Export share of turnover 73.6% in FY26.
• Region contributions: Europe 50%, Middle East 18%, North America 17%, Far East 10%, Rest 3%, South America 2%.
• Product portfolio includes laminates, compact laminates, acrylic solid surfaces, exterior cladding, cubicles, large-format laminates.

Governance and board changes

• Board refreshed mid-2026 with multiple new independent and nominee directors.
• Exit of Vinod Kumar, Sachin Bhatla, Manav Gupta, Rajesh Gill in Feb 2026.
• New AICA-nominated directors: Sakai, Amada, Ebihara, Omura, Iwatsuka, Suzuki, Tanaka, Thiaphairat.
• MD Jagdish Gupta and director Manit Gupta continue; governance strengthened.

Audit, risk and governance flags

• Statutory auditors Mittal Goel & Associates; unmodified opinion; no fraud reported.
• Internal controls robust; SAP-based, RC-CAPA, 8D, SPC in use.
• Related party transactions disclosed; reviewed by Audit Committee; arm's-length terms.
• No material going-concern concerns; reliance on diversified export markets.

Sustainability and CSR

• CSR spend ₹3.45 crore; focus on education, healthcare, rural upliftment, sport.
• Zero Liquid Discharge (ZLD) and ISO 14001 environmental systems in place.
• PNG-fired dryers; biomass from sanding dust used as fuel; solar plans underway.
• First India laminate maker to shift impregnators to PNG; energy efficiency initiatives ongoing.

Financial Performance

• Q1 FY27 margins around 19%–20%+, despite capex and higher utilization.
• No inventory gain in the quarter; efficiency and utilization drove sales.
• Commercial production of the new plant expected in the first week of September.
• Depreciation for the new plant to commence from next month.
• Domestic revenue share around 25%; expected to rise gradually from Q3.
• US tariff currently 10%; some reports of 0% discussed, but not confirmed.
• Capex focus on laminates; domestic market strengthening first.
• Trial vs commercial: commercial production targeted September; trial ongoing.
• Aica stake: no immediate promoter stake increase planned; options under review.
• Exports growth: Europe strong; APAC and Middle East improving; logistics challenges global.

Operating Update

• New plant ramp-up targeted at 30%+ capacity in the first year.
• Commercial production expected by Sept 1, with dry run ongoing.
• There are no POs for the full year; monthly ramp-up expected.
• Laminate capex aimed at domestic market expansion; wood-panel adjacencies to follow.
• New team, distributors, and warehouses being built for the domestic market.
• Aica board meeting occurred; no immediate strategic plan disclosed.
• Exports: existing geographies to grow; Europe, APAC, ME expanding.
• Tariff impacts: US 10% duty in place; logistics congestion; general global impact.
• Phenol and melamine prices: phenol ~ USD 1,400/ton; Melamine USD 1,000–1,100.

Guidance and Outlook

• Margin guidance around 19–20%+ persists; capex timing end-August; plant online by Sep.
• New plant initial-year revenue targeted at 250–300 crores.
• Domestic revamp expected to show results from Q3 FY27; gradual ramp.
• Export growth to continue; Europe strong; new geographies added; logistics challenges remain.
• No forecasted further price hikes unless raw-material costs rise.
• Depreciation for the new plant will start next month.

Risks and Watchpoints

• Uncertain near-term roadmap from Aica; tech transfer possible.
• Raw-material costs volatile due to war; potential upside/downside.
• Global logistics disruptions; affect shipments and costs.
• Exports logistics remain challenging; global supply chains strained.