Stylam FY26: Exports drove growth, and the new plant is the next catalyst

Stylam Industries ended FY26 with higher consolidated revenue and profit, supported by steady export demand and a healthier margin profile. Consolidated net revenue rose to INR1129 crore in FY26 from INR1025 crore in FY25. EBITDA increased to about INR220 crore from INR185 crore, and PAT moved up to INR150 crore from roughly INR122 crore.

In Q4 FY26, revenue came in at INR283 crore versus INR265 crore in Q4 FY25. EBITDA improved to INR55 crore from INR43 crore, while PAT rose to INR38 crore from INR29 crore. The company also disclosed that it sold 3.27 million sheets in Q4, with exports contributing 2.21 million sheets and domestic 1.06 million.

The larger context is Stylam’s export-heavy operating model. The investor presentation shows exports at INR831 crore in FY26, up from INR731 crore in FY25. Domestic revenue was INR298 crore versus INR294 crore. In the earnings call, management framed FY26 mix at roughly 75% exports and 25% domestic and indicated this mix could broadly remain similar, while domestic efforts are being strengthened.

Financial snapshot: margins improved in FY26

Stylam’s FY26 numbers point to improving operating leverage. The company reported contribution margin of 47% for FY26 and 49% in Q4 FY26, reflecting better gross profitability after material costs. FY26 EBITDA margin was about 20% versus 18% in FY25, as per the presented P&L table.

The quarter also reflected a higher employee expense line compared to the previous quarter. Management linked this to fixed-cost readiness for the new plant and suggested only marginal additional fixed cost would be needed when the plant starts commercial production.

New plant commissioning: the key operating swing factor

The most important near-term variable is the commissioning of Stylam’s third greenfield laminate plant at Manak Tabra, Panchkula, located next to its existing facility. The investor presentation states that groundwork for the new plant is underway to meet rising global demand.

On the May 12, 2026 earnings call, management guided that commercial production should begin by end of June 2026 or by mid-July 2026 at the latest. Management acknowledged that earlier timelines were pushed back and attributed delays to environmental clearance requirements that emerged after a Supreme Court observation. The company applied for clearance with the Ministry of Environment, and management indicated that trials have started.

The call included multiple datapoints on ramp-up and revenue potential:

Management said the new plant could deliver about INR300 to INR400 crore turnover over the next three quarters after it starts commercial production. In another response, management gave a more conservative FY27 target of about INR250 to INR300 crore from the new plant. Longer-term, management discussed a potential peak revenue capacity of INR900 to INR1000 crore from the plant, and suggested that the next year after FY27 could see around INR600 to INR700 crore if utilization moves toward roughly 80%.

Management also indicated that 30% to 40% utilization can be achieved early, starting from the second quarter after commissioning, and that 80% plus utilization could be achieved over the next two years.

Inputs, pricing, and the margin question

Analysts focused heavily on raw material inflation, especially phenol and crude-linked input costs, as well as freight volatility. Management’s stance was that near-term impact is limited because the company carries contracted supply and inventory, including multi-month stocks for some chemicals. They also stated that they are not exposed to daily spot buying for all inputs.

On pricing, management said the company has taken two tranches of price increases in the domestic market and indicated overall hikes of about 3% to 5% for customers. In exports, they said pass-through is attempted where possible but cannot be done fully.

When asked about margin sustainability, management suggested margins could move up or down but did not give a fixed band. In one exchange, management indicated that even if crude stays elevated, the EBITDA margin impact should not be significant, and suggested that incremental revenue from the new plant could add operating leverage because it would not require proportionate increases in overheads.

Domestic focus and acrylic: two operating levers to watch

On the domestic business, management stated it has been about three months since they started handling it more directly and systematically, similar to how export operations are managed. They did not outline large structural changes, but did state that the impact of these efforts should start becoming visible in two to three quarters.

The acrylic solid surface segment was addressed with unusual candor. Management said acrylic did not perform as expected in FY26, with turnover of about INR15 crore. For FY27, management guided acrylic revenue could rise to around INR50 to INR70 crore, linked partly to potential demand from Aica, which management said is currently importing acrylics from Europe and the US.

What management guided for FY27

The call had limited explicit company-level guidance, but management stated FY27 revenue could grow about 20% to 25% over FY26, depending on the external situation. They also referenced that the new plant should follow a similar margin pattern to prior guidance, and in an exchange, management indicated that by FY28 a 22% EBITDA margin could be possible if there are no major disruptions, though this was framed as hope rather than a firm commitment.

Separately, management disclosed that capex spent so far on the new plant is about INR334 crore.

Takeaways

Stylam’s FY26 performance shows a company benefiting from export momentum and improved profitability, with EBITDA margin expanding to about 20% and PAT reaching INR150 crore. The next phase is execution-driven. The most measurable near-term milestone is commissioning of the third laminate plant by end-June to mid-July 2026 and ramping it toward the utilization levels discussed in the call.

For investors tracking FY27, the key questions will be whether the new capacity translates into the INR250 to INR300 crore incremental revenue management discussed, whether input inflation remains manageable through contracts and price actions, and whether the acrylic segment can scale meaningfully from the INR15 crore base disclosed for FY26.