Styrenix Perfor.

Styrenix Performance Materials reported a standalone total income of INR648.8 crores in Q3 FY26, marking a 6.2% year-on-year dip from INR692.2 crores in Q3 FY25. Despite this, standalone EBITDA saw a marginal growth of 0.4% YoY, reaching INR75.7 crores, with EBITDA margins improving significantly by 800 basis points to 11.7%. Profit After Tax (PAT) for the standalone entity, however, decreased by 7.51% YoY to INR44.3 crores, with PAT margins at 6.8%. Sales volume demonstrated resilience, growing 7.6% YoY to 51.1 KT.

On a consolidated basis, the company reported a total income of INR871.3 crores for Q3 FY26. The transcript stated consolidated EBITDA as INR943.5 crores and EBITDA margins at 5%. This presents a clear discrepancy, as a 5% margin on INR871.3 crores revenue would imply an EBITDA of approximately INR43.57 crores. Consolidated PAT stood at INR16.3 crores, with a PAT margin of 1.9%. Consolidated sales volume for the quarter was 66 KT.

The company's Thailand operations, acquired in January 2025, underwent a brand transition to Absolac and Absolan. Inventory was built up during the first half of the year to manage this transition and test plant productivity. However, a significant fall in raw material and finished goods prices over the last 9 months led to inventory losses, impacting consolidated profitability. Management clarified that these were not one-time^📎 adjustments but rather a consequence of market pricing dynamics, with over 75% of losses attributed to inventory valuations.

Styrenix expanded its polystyrene capacity from 65,000 tons to 100,000 tons, primarily for General Purpose Polystyrene (GPPS). However, overall sales in GPPS have not fully utilized this capacity, partly due to muted demand in the first two quarters of FY26. In contrast, High Impact Polystyrene (HIPS) is running at nearly 100% capacity utilization with a high OEM percentage. Management noted that while GPPS imports are significant, they sometimes consciously avoid the unorganized market due to low pricing.

The Indian ABS market remains stable with no significant changes in demand-supply dynamics, despite new capacity additions by competitors. India continues to be a net importer of ABS. Globally, overcapacity in China, Korea, and Taiwan maintains competitive pressure. Styrenix is on track with Phase 1 of its ABS expansion, targeting commissioning in H2 FY27, with an estimated capex of INR350 crores. Phase 2 is planned for the subsequent financial year.

Management acknowledged the historical volatility of styrene monomer prices but noted they remained fairly stable last year despite a reduction towards year-end. The company has implemented a hybrid power agreement, expected to become effective in February or March 2026. This initiative is anticipated to reduce power costs and contribute to profitability in the coming quarters.