Styrenix Performance Materials (506222) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 standalone total income declined 6.2% YoY to INR 648.8 crores, while EBITDA grew marginally by 0.4% YoY to INR 75.7 crores.

• Standalone sales volume for Q3 FY 2026 rose 7.6% YoY to 51.1 KT; consolidated sales volume (India + Thailand) was 66 KT.

• Thailand business faced inventory losses due to price declines in finished goods and raw materials, following inventory buildup during brand transition.

• 9-month FY 2026 standalone total income was INR 1,988 crores, with EBITDA at INR 243.6 crores (12.3% margin) and PAT at INR 150 crores (7.5% margin).

• Expansion plans and integration of the Thailand acquisition are progressing, supporting long-term growth and market leadership.

Financial highlights

• Q3 FY 2026 consolidated total income rose 25.9% YoY to ₹871.3 crore; standalone total income was ₹648.8 crore.

• Q3 FY 2026 standalone EBITDA margin improved to 11.7% from 10.9% YoY; PAT margin slightly dipped to 6.8%.

• Q3 FY 2026 consolidated EBITDA margin was 5%, with PAT margin at 1.9%.

• 9-month FY 2026 consolidated total income reached INR 2,619 crores, EBITDA INR 231.8 crores (8.8% margin), and PAT INR 109.4 crores (4.2% margin).

• Inventory losses in Thailand contributed to over 75% of the INR 40 crore difference between standalone and consolidated EBITDA in Q3.

Outlook and guidance

• ABS demand-supply in India remains stable; domestic production is less than 50% of demand, with India still a net importer.

• Additional ABS capacity expansion (phase one) is on track for the second half of FY 2027; phase two to follow.

• Power cost reduction benefits from a new hybrid power agreement will start accruing in the coming quarters.

• Full-year volume growth target revised lower due to sluggish polystyrene demand in H1, despite robust ABS growth.

• Management is monitoring the impact of new Indian Labour Codes and will adjust accounting as further regulatory guidance emerges.