Record PAT masks volume collapse; margin normalization ahead

Standalone volumes fell 26% YoY despite pricing uplift; consolidated revenue 7.1% YoY despite mid-single-digit target at fiscal start.

PAT +166% YoY driven by gap between raw material and finished product pricing (explicitly transient). Management stated margins are 'snapshot in time' and not sustainable.

ABS expansion confirmed FY27 but no quarter specified. SAN sales (~15–20k tonnes/yr from ~100k capacity) confirmed to continue. No volume growth target articulated.

Management quantified non-OEM impact as 'far more exaggerated' but confirmed OEM also impacted. Volume recovery contingent on broad market normalization, not OEM resilience alone.

Thailand sales flat for 1.5 years post-acquisition. Energy/supply chain constraints cited. 3-year frame for margin improvement is speculative; no commercial milestones achieved yet.

Entered FY27 expecting mid-single-digit growth; Q1 saw 26% volume drop in standalone despite pricing uplift, showing demand destruction not pricing power.

Management explicitly stated: current margins are 'not indicative of sustainable business' and not to assume expansion. Pricing gap is temporary; normalization will compress NPM from 13.6% toward prior-year levels.

ABS expansion remains FY27 but no quarter specified (was 'H2 FY27' in prior calls; now 'Q3–Q4 distinction is fairly precise' but 'not in line with our priorities'—signaling delays possible).

No new commercial wins; validations still in 12–24 month cycle. 3-year frame for margin recovery is new; prior call implied sooner traction.

Unwillingness to buy; non-OEM sector heavily impacted (15–25% segment-wide drop). OEM impact muted. Middle East disruptions drove pricing spikes, demand destruction not supply shortage.

Current margins a 'snapshot in time,' not indicative of sustainable business. Assume prior-year operational basis. Normalization expected once volatility subsides.

No cost increase stated; no guidance given on reduction timeline. Volumes will take time to pick up; current environment not conducive to timing prediction.

Some inventory/channel stocking/destocking at play but not entire story. Overall pricing impact at multiple levels. Uncertain if catch-up will materialize; contingent on normalization.

Assume normalization to same level, not higher. Volatility and uncertainty too high; unwilling to hazard guesses on margin expansion.

Production in line with sales forecast. RM inventory slightly higher due to alternate sourcing (10–15 day longer lead times). Styrene monomer $1000→$1600–$1700→$1100–$1400 range; acrylonitrile $1200→$1800–$1900→$1400–$1600; butadiene $1000→$2500→current. Fully covered; lead times longer.

SAN merchant sales will continue unaffected. Capacities expanded on all sites (rubber, SAN, compounding). No impact on merchant sales.

Yes, pricing gap (RM up more than finished product initially; then compressed) led to abnormal margins. Will not comment on current quarter but prior quarter pricing significantly higher than earlier quarter.

Auto production numbers more or less flat. Auto sector supplied accordingly. Impact muted vs. appliances. Tier 1 ancillaries buy directly from us; OE specifies product and share; smaller volumes via distributors.

Operating at low utilization on specific products. Demand impacted similarly to India. Competitive intensity high. Company not seeing huge volume impact for specific products. Structurally, scenarios similar across regions.

Activity on track with good feedback but not translated to volume yet. Current environment difficult (demand reduction). Short-term phenomenon; structurally nothing changed.

Still close to commissioning; brownfield complexity (running plant) makes precision difficult. Q3–Q4 distinction fairly precise but 'not in line with our priorities' (safety/env take precedence). Will happen this FY year.

Few hundred tonnes monthly. Don't break up products competitively but ~few thousand tonnes annualized.

Sell 15–20k tonnes SAN/yr from 100k capacity; mostly in-house. Auto, appliances, other sectors; split can vary depending on sector growth. Expect both sectors to grow in normalized environment; split to remain same if growth in line.

Supply chain disruptions don't trigger short-term customer switching; long spec process needed. No significant benefits from current crisis. Customers looking to expand supply for structural reasons; participating there.

Both ABS and PS important; both have equal focus depending on customer requirements and capex allocation. ABS expansion prioritized now. PS expansion as business case becomes clear; will share in future.

Thailand cost structure higher than India; difficult to compare. As volumes improve over time, margin profile will strengthen. Target 3-year frame for improvement.

Migrated to own brand ~1.5 years ago (unknown in region). Sales to China, Japan, Vietnam, SE Asia, Korea. Strategy: more validations (12–24 month cycle), deployed sales teams in Shanghai, Vietnam, Seoul, Osaka. Differentiated product but high competitive intensity from China.

FY27 completion confirmed but no specific quarter given (brownfield complexity, safety/env priorities). 8th, 9th, or 11th month not to be guessed. Volume guidance: don't give as company; production can sell most; geopolitical uncertainty prevents precision.

Q1 saw revenue growth 6.6% (SA) and 7.1% (consol.) YoY but through pricing, not volume. Management won't project FY27 revenue due to geopolitical uncertainty.

Current NPM 13.6% inflated by pricing gap. Management explicitly: 'not indicative of sustainable business.' Expect compression as RM/FP pricing gap closes.

Brownfield expansion in running plant; safety/environmental priorities over timeline precision. Management confident in FY27 close but unwilling to name month.

Middle East disruptions since March 2026 spiked RM costs (styrene monomer $1000→$1600–$1700; acrylonitrile $1200→$1800–$1900). Lead times 10–15 days longer from alternate suppliers. Volatility expected to persist; no clear stabilization timeline.

Q1 saw 26% volume decline in standalone and 15–25% segment-wide decline due to customer 'unwillingness to buy at higher prices.' Non-OEM sector saw 'far more exaggerated' impact. Recovery contingent on normalization.

Current NPM 13.6% and OPM 21.8% inflated by gap between RM and finished product pricing (explicitly acknowledged as 'snapshot in time' by management). When gap closes (RM pricing and FP pricing move in tandem), margins will compress toward prior-year 10–12% range.

50k-tonne ABS expansion is brownfield (in running plant). Safety, environmental compliance, and dynamic decisions prioritized over timeline precision. Q3 vs. Q4 distinction now being softened; no specific month given despite FY27 target.

Thailand volumes flat 1.5 years post-acquisition. Validations in 12–24 month cycle; no commercial wins yet. Energy constraints and supply chain disruptions in region adding headwinds. 3-year frame for margin improvement is speculative.