Stylam Industries Ltd

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.

Business Overview

• Laminates and surface solutions provider serving 80+ countries.
• One of India's top three laminate brands with innovation leadership.
• Zero-debt company; debt-free status maintained after expansions.
• New greenfield laminate plant adjacent to Manak Tabra, Panchkula, under construction.
• World's first hot coating press; 100% acrylic solid surface line.

Operational Highlights

• Capacity utilization reached 74% in laminates division after expansions.
• Third laminate plant commissioned adjacent to existing facility; groundwork underway.
• Q1 FY27 sales volume: 3.17 million sheets (Domestic 1.10m, Export 2.07m).
• Acrylic solid surface capacity: 300,000 panels per year.
• Laminate dimensions and technology: 28-daylights press; up to 4320x1860 mm formats.
• New plant near Panchkula to meet rising global demand.

Financial Performance

• Net revenue rose to ₹1,129 crore in FY26 from ₹659 crore in FY22.
• EBITDA ₹221 crore; PAT ₹150 crore in FY26.
• Q1 FY27 revenue grew 15% YoY.
• Zero debt; company remains debt-free.

Capital Structure & Liquidity

• Zero debt; net debt-free status maintained.

Strategic Priorities & Outlook

• Vision 2030 to become global leader in building materials.
• Focus on value-added products, design innovation, sustainable manufacturing.
• Confident in achieving financial guidance; expansion accelerates scale.
• Groundwork on new plant progressing; capacity expansion to meet demand.

Meeting Details

• Date and time: Friday, July 24, 2026 at 11:00 AM IST.
• Type and mode: group earnings conference call; virtual teleconference.
• Organiser: Systematix Institutional Equities.
• Event: Q1 FY27 unaudited results conference call for Stylam Industries.

Participants

• Company management participants: Managing Director, Whole Time Director, Chief Financial Officer.

Purpose

• Discuss unaudited Q1 FY27 results for quarter ended June 30, 2026 with analysts/investors.

Meeting Details

• Board meeting on July 22, 2026, to be held via video conferencing.

Key Agenda Items

• Consider, approve, and record unaudited standalone and consolidated Q1 results for quarter ended June 30, 2026.

Other Notes

• Trading window closed for directors, officers, KMPs from July 1, 2026 until 48 hours after results.

Filing excerpt status

• No dematerialisation/rematerialisation processing details are provided in this excerpt.
• Securities dematerialised/rematerialised status and listing confirmation not stated.
• No details on physical certificates mutilation or depository substitution provided.

Financial performance

• 📊 Standalone revenue from operations rose 24.4% YoY to ₹1,129.29 lakh in FY26.
• 📊 Standalone total income increased 10.0% YoY to ₹1,136.03 lakh in FY26.
• 📊 Standalone PAT rose 22.8% YoY to ₹149.47 lakh in FY26.
• 📊 Consolidated revenue from operations rose 24.4% YoY to ₹1,129.29 lakh in FY26.
• 📊 Consolidated total income increased 10.0% YoY to ₹1,136.09 lakh in FY26.
• 📊 Consolidated PAT rose 22.8% YoY to ₹149.87 lakh in FY26.
• 📊 Q4 FY26 standalone revenue was ₹282.95 lakh, up 6.6% YoY.
• 📊 Q4 FY26 standalone PAT was ₹37.90 lakh, up 31.1% YoY.
• 📊 Q4 FY26 consolidated PAT was ₹38.25 lakh, up 29.3% YoY.

Expenses

• 📊 FY26 standalone material cost was ₹613.99 lakh, up 9.2% YoY.
• 📊 FY26 standalone employee cost rose 14.8% YoY to ₹95.93 lakh.
• 📊 FY26 standalone other expenses increased 5.1% YoY to ₹209.16 lakh.
• 📊 FY26 standalone finance costs fell to ₹3.44 lakh from ₹3.92 lakh.
• 📊 FY26 standalone depreciation and amortisation expense was ₹20.70 lakh.

Balance sheet and cash flow

• 📊 Standalone total assets rose to ₹979.12 lakh from ₹778.53 lakh.
• 📊 Standalone cash and cash equivalents increased to ₹65.21 lakh from ₹48.90 lakh.
• 📊 Standalone inventories rose to ₹218.44 lakh from ₹185.26 lakh.
• 📊 Standalone trade receivables were ₹208.38 lakh at FY26 end.
• 📊 Standalone borrowings were ₹29.09 lakh, down from ₹36.07 lakh.
• 📊 Consolidated cash and cash equivalents were ₹68.58 lakh at FY26 end.
• 📊 Consolidated capex purchases were ₹191.86 lakh in FY26.
• 📊 Consolidated operating cash flow was ₹177.41 lakh in FY26.

Capex and operations

• 🧱 Stylam is expanding capacity with a new plant in Panchkula, Haryana.
• 🧱 The new plant will be the company's third laminates plant.
• 🗓️ Operations are expected to commence in June 2026.
• 🧱 Construction of the expansion is progressing well.

Audit and approvals

• 📍 Statutory auditors issued unmodified opinions on standalone and consolidated FY26 results.
• 📍 Board approved the audited standalone and consolidated results on May 7, 2026.
• 📍 Consolidated results include wholly owned subsidiary Stylam Panels Limited.

Business model

• Stylam Industries operates in a single business segment.
• The consolidated financials include Stylam Panels Limited as a subsidiary.