Stylam Industries Ltd — earnings calls

Stylam Industries reported Q1 FY27 results with EBITDA margins exceeding 21%, above the 19-20% range management had previously indicated as typical. Management attributed the margin performance to efficiency gains and higher utilization rather than any inventory-related benefit, and said the new capacity expansion, delayed due to family issues and earlier environmental and weather-related construction delays, is now expected to reach commercial production by early September 2026. Management also discussed ongoing restructuring of the domestic business, including new distributors, warehouses and team changes, and addressed questions on the Aica strategic partnership, US tariffs, and raw material costs.

Management discussed the ramp-up of the new greenfield laminate plant at Manak Tabra, expected to begin commercial production between end-June and mid-July FY27 after a delay caused by environmental clearance requirements following a Supreme Court observation. The company reported a gross margin of 49% in Q4 FY26 and a capex spend of INR334 crores on the new plant so far. Management also discussed the AICA Kogyo strategic partnership, tariff and freight impacts on exports, and raw material cost pressures from the ongoing geopolitical conflict.