Company reported unaudited financial results for Q1 ended June 30, 2026.
EBITDA margins exceeded 21% for the quarter, surpassing the historical ceiling of 20%.
Margin improvement was attributed to operational efficiency and higher sales utilization, not inventory gains.
Export business achieved its highest quarterly performance.
New Plant Commissioning & Capex
New laminate plant commissioning has been delayed, with commercial production now expected by September 1, 2026 (maximum timeline).
Dry run trials are currently underway.
Delays were attributed to heavy rains in Chandigarh and previous family-related issues that have now been resolved.
For the first year of operation, management targets a conservative 25-30% capacity utilization for the new plant.
This is expected to generate revenue of ₹250-300 crores in FY27.
All major employee costs for the new plant have already been incurred in previous quarters.
Depreciation for the new plant will begin from the next month (August/September 2026).
Management indicated that focus is currently on starting this plant, with announcement of additional major capex delayed until next quarter.
Future capex will focus on domestic market expansion into wood panel adjacencies (potentially plywood, MDF, particle boards) rather than laminates.
Domestic Business Restructuring
Domestic business revenue has been stagnant at approximately ₹300 crores run rate for the past four years.
Management is undertaking a comprehensive restructuring of the domestic business.
Initiatives include: building a new team, adding new distributors, opening new warehouses, entering new geographic markets, and rebuilding market confidence.
Significant results from this restructuring are expected from Q3 FY27 onwards, with gradual improvement visible in Q2.
Domestic business losses have been reduced in Q1, indicating margin improvement.
The company has implemented multiple product-specific price hikes in the domestic market during Q1.
Export Market & Demand
Export demand remains strong, particularly in Europe, APAC region, and Middle East.
US tariffs on laminates remain at 10% (not increased to 15% as previously anticipated).
US market contributes approximately 10-12% of laminate revenue; Middle East contributes 10-15%.
Logistics costs remain a challenge globally but are being managed.
Existing plant capacity still has 5-10% additional utilization potential through efficiency improvements.
Acrylic production capacity is currently underutilized and is part of the domestic revamp strategy.
Raw Material Costs & Pricing
Current raw material prices: Phenol at approximately $1,400 per ton; Melamine at $1,000-1,100 per ton.
Prices remain elevated due to geopolitical tensions (West Asia war).
Recent price hikes are sustaining current margins.
Management cannot predict future raw material cost movements, which depend on geopolitical developments.
Aica Partnership Update
Aica has nominated 7-8 members to the company's Board.
The first Board meeting with Aica representatives was held on July 22, 2026.
Partnership currently focuses on technology transfer possibilities rather than operational involvement.
Aica may potentially source acrylic solid surfaces from Stylam for their global distribution in the future.
Stylam maintains operational independence, with the company run by existing management (Jagdish Gupta and Manit Gupta).
Employee Cost & Depreciation
QoQ decline in employee cost (10%) was due to actuarial valuation adjustments in the previous quarter's audited results.
Employee cost is expected to remain at current levels as major hiring for new plant is complete.
