Stylam Q2 FY27: margin compression caps consolidated PAT growth at 13% YoY

Stylam Industries' consolidated Q2 FY27 (quarter ended September 30, 2026) revenue came in at ₹340.52 Cr, up 16.5% YoY from ₹292.40 Cr and up 4.3% QoQ from ₹326.47 Cr. Consolidated PAT was ₹42.35 Cr, up 13.4% YoY from ₹37.34 Cr but down 12.1% sequentially from ₹48.16 Cr in Q1 FY27 — profit growth trailed revenue growth on both counts, and basic EPS fell to ₹24.93 from ₹28.37 in the prior quarter. There were no exceptional items in either the current or comparative periods, so these are unadjusted growth figures reflecting underlying operations.

The gap between revenue and profit growth sits on margins: EBITDA margin (OPM) compressed to 16.8% from 19.4% a year ago, and fell more sharply from 21.1% in Q1 FY27, while net margin held closer to flat YoY at 12.4% (vs 12.7%) but dropped from 14.7% sequentially. The timing lines up with the new laminate manufacturing line adjacent to the Manak Tabra plant, which began commercial production on September 22, 2026 per the filing's notes — roughly three weeks after the September 1 start management flagged on the Q1 call — contributing only about eight days of revenue this quarter while still carrying start-up costs.

The stock went into the print at ₹2,889.8, down 14.2% over the past month of trading.

Against management's own framing, the quarter falls short: the July concall guided 19-20% EBITDA margins and 20-25% full-year revenue growth, alongside ₹250-300 Cr of FY27 revenue from the new plant at 30% utilization. Actual OPM of 16.8% is below that band, and H1 FY27 revenue of ₹672.48 Cr is up ~15.9% YoY — trailing the low end of the full-year growth guidance, which now needs a stronger H2 to close. No Q2-specific street estimates for Stylam turned up in search, so vsStreet is unknown; the company's own FY27 20-25% growth target remains the closest public yardstick. No fresh management press release accompanied this filing beyond the operational note on plant commissioning. Separately, the board approved a 1:5 equity share split (face value ₹5 to ₹1) alongside the results, pending shareholder approval via postal ballot — a liquidity move unrelated to the quarter's operating performance.