Stylam Industrie Q1 FY27 Results (NSE: STYLAMIND)
Signal: Margin expansion
The read
Q1FY27 delivered a sharp inflection: revenue growth jumped to 15.4% YoY (vs 6.8% in Q4FY26) and EBITDA margin expanded 249bps to 21.5% on raw material tailwind. Finance costs collapsed 92% YoY, amplifying PAT growth to 70.4%. The new laminates plant in Panchkula (expected Aug 2026) adds further capacity. The only concern is employee cost growing faster than revenue, but the margin story is dominant.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹326.47 Cr | 15.4% | 15.4% |
| EBIT | ₹70.07 Cr | 30.4% | |
| Net profit | ₹48.16 Cr | 70.4% | |
| EPS | ₹28.37 | 71.2% | |
| EBIT margin | 21.47% |
P&L walk
Revenue growth accelerated to 15.4% YoY from 6.8% in Q4FY26; EBITDA margin expanded 249bps to 21.5% driven by raw material tailwind and operating leverage; finance cost collapsed 92% YoY to ₹59 lakh, lifting PAT growth to 70.4%.
Key positives
- Revenue growth accelerated to 15.4% YoY after sub-7% growth in previous two quarters.
- Gross margin expanded 266bps YoY to 47.2%, raw material % of revenue fell to 52.8%.
- EBITDA margin up 249bps YoY to 21.5% — combination of input tailwind and operating leverage.
- Finance cost crashed 92% YoY to ₹59 Lakh (from ₹749 Lakh), adding ~₹690 Lakh to pre-tax profit.
- PAT surged 70.4% YoY, EPS at ₹28.37 (+71.2%) — highest in at least 12 quarters.
Key concerns
- Employee cost grew 21.2% YoY, outpacing revenue growth by ~6pp; wage inflation/hiring ahead of new plant.
- Depreciation declined 10.8% YoY despite ongoing capex — may normalize when new plant capitalizes.
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