Styrenix Perfor.

Styrenix Performance Materials reported consolidated total income of INR837.9 crores for Q4 FY26, with an EBITDA of INR128 crores (15.3% margin) and PAT of INR73.5 crores (8.8% margin). For the full FY26, consolidated total income stood at INR3,454.4 crores, with EBITDA of INR359.6 crores (10.4% margin) and PAT of INR182.8 crores (5.3% margin). Standalone Q4 FY26 saw a 6.3% dip in income to INR658 crores, but EBITDA grew 51.9% to INR126 crores, with margins improving by 734 basis points to 19.2%. PAT for standalone Q4 FY26 grew 58.6% to INR84.3 crores, with a 12.8% margin.

The company noted global supply chain disruptions, particularly from the Middle East crisis and the Strait of Hormuz, impacting benzene, ethylene, and styrene monomer prices. While raw material prices have increased, finished product prices have moved in tandem, maintaining spreads. Management confirmed no significant disruption to manufacturing due to diversified global sourcing, ensuring raw material availability. However, the duration of these disruptions and the timeline for price normalization remain difficult to predict.

ABS capacity expansion remains on track for the second half of FY27, with no current cost escalation for the upcoming capex. For polystyrene, general-purpose capacity has already been expanded, but faces muted demand and margin compression from imports. The HIPS expansion is still under study, with management not yet 100% convinced on deploying additional capital. The company aims to double its ABS and SAN output in the next 2-3 years, focusing on value-added products.

India's ABS market demand is projected to grow by an additional 30,000 to 50,000 tons annually. Despite current capacities and new market entrants, a shortfall of over 100,000 tons remains, providing a significant import substitution opportunity for the next 5-7 years. Styrenix is committed to being a preferred supplier in India and leveraging this growth potential through its planned capacity expansions.

The Thailand business experienced a volume dip in Q4 FY26, primarily attributed to unusual pre-booking by customers in the prior year due to a brand transition. Management expects the plant to reach breakeven at 60-70% capacity utilization. The Thailand plant is strategically important for serving large customers in the EV and appliance sectors in China and the Far East, leveraging its geopolitical positioning and technology advancements.

While current market tightness allowed for some opportunistic gains and higher realizations in certain segments, management cautioned that these short-term arbitrages may not be sustainable. Raw material prices are expected to remain elevated in the short-to-medium term, which could keep finished product prices higher than in the past. The GPPS segment faced a significant volume decline due to muted demand and intense pricing pressure from imports, leading the company to strategically avoid aggressively participating in unorganized segments not backed by contracts.