Stylam Industries Q4 Results: EBITDA Margins at 20% and PAT Up 23%

Synopsis: Stylam Industries revenue growth remained moderate at 10 percent, with a new third laminates plant in Panchkula on track to commence operations in June 2026, which will be the most significant capacity addition in the company’s history.

Shares of India’s largest laminate-producing group came into focus after its Board of Directors, meeting on May 7, 2026, approved audited financial results for both the fourth quarter and full year ended March 31, 2026. The numbers reflected a business in margin recovery mode, with operating leverage working in the company’s favour even as export-driven revenue growth stayed in single digits.

With a market capitalisation of Rs. 4,322.43 crore, the shares of Stylam Industries were last trading at Rs. 2,548.50 per share, up 9.73 per cent from its previous close of Rs.2,322.6. It is trading at a P/E of 27.88, with a ROCE of 27.4 per cent and ROE of 20.4 per cent.

On a standalone basis, revenue from operations for the full year FY26 grew 10.2 per cent to Rs. 1,129.29 crore from Rs. 1,025.09 crore in FY25. Net profit after tax advanced 22.7 per cent to Rs. 149.47 crore from Rs. 121.83 crore. EBITDA for the year came in at approximately Rs. 227 crore, with margins expanding to around 20.1 per cent from 17.8 per cent in FY25, the primary highlight of the year, achieved through a combination of better realisations, tighter cost management, and modest raw material relief.

For the fourth quarter specifically, revenue grew 6.7 per cent year-on-year to Rs. 282.95 crore while net profit rose 31.1 per cent to Rs. 37.90 crore from Rs. 28.91 crore, reflecting Q4’s traditional seasonality strength. The consolidated numbers were essentially in line with the standalone. Stylam Panels Limited, the wholly owned subsidiary, does not materially alter the consolidated picture. Auditors, Mittal Goel & Associates, issued an unmodified opinion on both standalone and consolidated results.

The company remains effectively debt-free at the operating level, with short-term borrowings of Rs. 29.09 crore against a total equity base of Rs. 806.80 crore. Operating cash generation was healthy at Rs. 177.08 crore for the year, though net investing outflows of Rs. 155.77 crore, largely directed toward the new plant absorbed a significant portion of that.

The most consequential development heading into FY27 is the new integrated laminates manufacturing facility at Panchkula, Haryana which is under active construction and expected to commence operations in June 2026. Capital work-in-progress on the balance sheet more than doubled to Rs. 221.45 crore from Rs. 83.05 crore, tracking the pace of construction spend. The addition will materially increase the company’s overall output capacity, which, given Stylam’s export-heavy business model, positions it to service incremental order flow from European and Southeast Asian buyers that the existing two plants currently operate at near-full utilisation to fulfil. How quickly the new capacity ramps to utilisation will be the key variable for FY27 earnings.

Stylam Industries, incorporated in 1991 and listed on BSE (526951) and NSE, manufactures high-pressure decorative laminates, specialty surfaces, compact laminates, and solid acrylic surfaces under the Stylam brand, with a strong export orientation to Europe and Southeast Asia. The company is recognised as a Star Export House by the Government of India and holds a pioneering position in the Hot Coating Process for PU+ lacquer on thin laminates. 

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