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

Executive summary

• Q1 FY26 saw record sales volumes in India, strong specialty-led growth, and improved product mix, despite sectoral slowdowns from early monsoon effects.

• The Thailand acquisition was completed in January 2025, fully integrated by June, enhancing APAC manufacturing capacity and mitigating geopolitical risks.

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

• Opened a new sales office in Shanghai, with further APAC expansion planned.

Financial highlights

• Standalone Q1 FY26 sales revenue: ₹721.1 Cr, up 2.8% sequentially and 3.2% YoY; consolidated revenue: ₹943.5 Cr, up 0.5% sequentially and 35% YoY.

• Standalone PAT: ₹54.9 Cr (7.6% margin), up 3.2% sequentially but down 10.3% YoY; consolidated PAT: ₹51.9 Cr (5.5% margin), down 15.2% YoY.

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

• Standalone EBITDA (PBDIT) for Q1 FY26: ₹86.12 Cr; consolidated EBITDA: ₹99.84 Cr.

• EPS (consolidated) for Q1 FY26: ₹29.52, down from ₹34.8 YoY.

Outlook and guidance

• Annualized volume growth target of 10-12% over the previous year remains on track, despite temporary demand softness in some segments.

• Thailand ramp-up expected to contribute additional volumes over the next 1-2 years; integration and customer revalidation ongoing.

• No new inorganic acquisitions planned at this time.

• ABS and HIPS capacity expansions scheduled for FY 2027 and FY 2028, respectively.

• 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.