Trading Symbol

STYLAMIND

Key Quantitative Figures & Operational Highlights

Financial Performance & Metrics:

  • Export Realization: Increased to INR 191 per kg in Q2 FY27 from INR 161 per kg in the previous year, a ~19% increase. Management clarified that per kg realization is a more appropriate metric than per sheet.
  • Volume Growth (H1 FY27): Total sheet volume was 6.96 million sheets in H1 FY27, up from 5.83 million sheets in H1 FY26, an increase of over 1 million sheets.
  • EBITDA Margin Clarification: Management clarified that the EBITDA margin for the quarter was "18 point something percent," not 17%, stating that export incentives should be considered part of operational profit.
  • Margin Impact: A 3-3.5% decline in EBITDA margin was attributed to increased costs, specifically INR 8.15 crores from higher ocean freight and INR 2.5 crores from increased PNG (Piped Natural Gas) costs, totaling an INR 11 crore impact.
  • Other Expenses: Increased to INR 77 crores in Q2 from INR 58 crores in Q1. The increase beyond the INR 11 crore disproportional impact was attributed to being proportional to increased production and sales volumes.
  • Finance Cost Volatility (FY26 Context): Explained that the significant difference between H1 FY26 (INR 9 cr) and full-year FY26 (INR 3 cr) finance cost was due to a loss of approximately INR 7-8 crores on foreign exchange forward contracts booked in H1, which was recovered by profits in H2 due to currency movements.
  • Cash Flow: Cash generated from operations was INR 26 crores for the period. A query regarding a INR 15 crore change in "other current financial liabilities" was not answered in detail during the call; management requested a follow-up via email.
  • CWIP: Capital Work-in-Progress stood at INR 12.41 crores, primarily related to the new plant for pending presses and ancillary construction work.

New Plant Update (Panchkula, Haryana):

  • Commissioning Date: The new plant became operational on September 22, 2026.
  • Current Status: Two presses were operational at the time of the call (Nov 4). A third press was expected to start within 2-3 days, and the fourth within a few days. The plant was expected to be fully operational within November 2026.
  • FY27 Outlook: The company expects INR 250-300 crores in revenue from the new plant in FY27, implying a utilization rate of 25-30%.
  • FY28 Outlook: Utilization is targeted to reach 60-70%+ in FY28.
  • Fixed Costs: Management stated there would not be a significant increase in fixed costs due to the new plant, with increases primarily related to direct costs.
  • Technology: Management described it as "the largest and the most advanced plant" globally for HPL, expecting lower maintenance costs and better margins once ramped up.

Market Performance & Strategy:

  • Exports: Experienced strong volume growth (>30% in H1). Growth is attributed to gaining global market share due to high energy and manufacturing costs in Europe and other regions. The Middle East (excluding Israel) remains a strong market with no significant revenue impact from geopolitical issues yet, though ocean freight availability remains a challenge.
  • Domestic Business (Laminates & Acrylic Surfaces): Performance is subdued. Management is actively revamping the domestic strategy, which includes stopping the sale of low-margin "liner" products (previously ~300,000 sheets/month) to focus on value-added products. A "drastic change" in both value and volume is expected in the domestic market in Q3 and Q4 FY27.
  • Pricing: Limited price increases have been taken in the domestic market. Price increases in the export market are described as difficult due to competition from both global organized players and Indian unorganized players.

Raw Material & Cost Environment:

  • Management cited high crude oil prices and a "cartel" by traders and suppliers as keeping raw material prices at a peak, contributing to margin pressure.

Partnership with Aica Kogyo:

  • The strategic partnership with Aica Kogyo (finalized June 15-16, 2026) is still in early stages (4 months). While discussions are ongoing, no specific synergies, joint projects, or integration plans have been finalized yet. All current market efforts are being driven by Stylam directly.

Forward-Looking Commentary

  • Management refrained from providing specific margin guidance for upcoming quarters, citing day-to-day volatility due to geopolitical tensions, crude oil prices, and raw material costs.
  • They expressed confidence in holding current contribution margins and believe margins could easily improve by 3-5% once the geopolitical and cost environment normalizes.
  • The long-term reconstruction needs in the Middle East were noted as a potential future opportunity.

Governance & Participants

  • Management Participants: Mr. Jagdish Gupta (Managing Director), Mr. Manit Gupta (Whole-Time Director), Mr. Kishan Nagpal (Chief Financial Officer), Mr. Sanjeev Madan (Vice President).
  • Moderator: Mr. Rishab Bothra from Systematix Shares & Stocks Limited.
  • Company Secretary & Compliance Officer: Mr. Dhiraj Kheriwal, who signed the filing.