Stylam Industrie Q2 FY27 Results (NSE: STYLAMIND)
Signal: Margin pressure
The read
The trajectory remains growth-positive but the margin arc has interrupted its recent expansion: Q2FY27 revenue grew 16.5% YoY to ₹34,051.90 lakh, while estimated EBITDA grew only 4.8% and margin fell 120bps YoY to 17.8%; the new plant is now operational, but its earnings contribution and the recovery in margin require confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹340.52 Cr | +16.5% | +4.3% |
| EBIT | ₹56.32 Cr | +6.9% | |
| Net profit | ₹42.35 Cr | +13.4% | |
| EPS | ₹24.93 | +12.4% | |
| EBIT margin | 17.8% |
P&L walk
Consolidated revenue increased 16.5% YoY to ₹34,051.90 lakh, but estimated EBITDA margin declined to 17.8% from 19.0% as employee and other operating expenses grew broadly with revenue; PAT still rose 13.4% YoY to ₹4,234.54 lakh, helped by 53.7% lower finance costs.
Segments
No segment table is disclosed, and standalone PAT of ₹4,233.22 lakh was nearly identical to consolidated PAT of ₹4,234.54 lakh, so the subsidiary did not materially drive group earnings.
Key positives
- Revenue increased 16.5% YoY to ₹34,051.90 lakh and 4.3% QoQ, maintaining double-digit growth momentum.
- Gross margin expanded approximately 205bps YoY to 48.4%, while raw-material consumption declined to 56.2% of revenue from 56.8%.
- Finance costs declined 53.7% YoY to ₹86.60 lakh, supporting 13.4% YoY PAT growth to ₹4,234.54 lakh.
- PPE reached ₹48,381.01 lakh and CWIP fell to ₹1,241.48 lakh as the new laminate plant commenced commercial production on September 22, 2026.
- The proposed five-for-one share split is intended to improve liquidity and participation by smaller investors.
Key concerns
- Estimated EBITDA grew only 4.8% YoY versus 16.5% revenue growth, and estimated EBITDA margin declined 120bps YoY to 17.8%.
- H1FY27 operating cash flow was ₹2,657.09 lakh against consolidated PAT of ₹9,050.64 lakh, with ₹5,771.47 lakh absorbed by the increase in trade receivables and ₹4,238.88 lakh by inventories.
- Net cash at 31-Mar-25 of ₹3,949.36 lakh turned into net debt of ₹2,972.49 lakh at 30-Sep-26 as cash declined and borrowings increased.
- Sequential PAT declined 12.1% to ₹4,234.54 lakh and EPS declined 12.1% to ₹24.93 despite 4.3% sequential revenue growth.
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