Styrenix Performance Materials (506222) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 saw strong specialty-led growth, record sales volumes, and improved product mix, with expansion and debottlenecking projects progressing as scheduled.

• The acquisition and integration of Styrenix Performance Materials Thailand Limited was completed, with consolidated results now including this subsidiary.

• Thailand operations are at 50-55% utilization, with significant ramp-up potential as customer revalidation and integration continue.

• Leadership in Automotive and Household sectors remains robust, with expansion into APAC markets and a new sales office in Shanghai.

• Debottlenecking at the HRG facility in India increased capacity by 20%, supporting rising demand.

Financial highlights

• Standalone Q1 FY26 sales revenue: ₹721.11 Cr, up 2.8% sequentially and 3.2% year-over-year; consolidated revenue: ₹943.5 Cr, up 0.5% sequentially and 35% year-over-year.

• Standalone Q1 sales volume: 51.8 KT, up 8.1% sequentially; consolidated Q1 sales volume: 67.2 KT, up 5% sequentially.

• Standalone PBIT: ₹86.1 Cr (11.9% margin); consolidated PBIT: ₹99.8 Cr (10.6% margin).

• Standalone PAT: ₹54.9 Cr (7.6% margin); consolidated PAT: ₹51.9 Cr (5.5% margin).

• Standalone EPS for Q1 FY26: ₹31.20; consolidated EPS: ₹29.52.

Outlook and guidance

• Management expects to meet annualized volume targets, projecting 10-12% volume growth over the previous year despite sectoral slowdowns.

• Thailand ramp-up is expected to drive future growth, with ongoing efforts to increase utilization and customer approvals.

• Indian household AC production expected to decline due to early monsoon and high inventory; overall market outlook for Jul–Sep is 3–5% industry growth.

• No new inorganic acquisitions are currently planned.