Stylam Industries Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 to the Bombay Stock Exchange and the National Stock Exchange of India on August 04, 2026. The filing, mandated under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provides stakeholders with a comprehensive overview of the company’s environmental, social, and governance performance. For investors, the report underscores the firm’s heavy reliance on international markets, with exports contributing 73.60% of total turnover, while confirming robust compliance with safety and human rights standards across its operations.

The report covers the period from April 01, 2025, to March 31, 2026, and is prepared on a standalone basis. Dhiraj Kheriwal, Company Secretary & Compliance Officer, signed the document, which forms an integral part of the Annual Report for FY26. The company reported a turnover of ₹11,360,299,946 and a net worth of ₹8,067,977,222, making Corporate Social Responsibility (CSR) applicable under Section 135 of the Companies Act, 2013.

Operational and Market Overview

Stylam Industries operates two manufacturing plants and eight offices across India, serving customers in 28 states. Its primary business activity involves the manufacturing of laminates and allied products, which accounted for 99.41% of its turnover. The company’s diverse customer base includes stockists, distributors, OEMs, architects, and institutional clients. Notably, the company does not have international offices, relying entirely on domestic infrastructure to support its significant export volume.

Governance and Related Party Transactions

The BRSR disclosure reveals minimal exposure to related-party transactions (RPTs). Purchases from related parties amounted to ₹33,40,156 against total purchases of ₹6,040,808,622, representing 0% of total purchases. Similarly, sales to related parties were ₹2,71,677 against total sales of ₹11,292,939,289, also constituting 0.00% of total sales. Investments in related parties stood at ₹10,000,000, which was 100% of total investments made, indicating a focused capital allocation strategy within the group structure, specifically towards its subsidiary, Stylam Panel Limited.

Environmental and Social Metrics

The company reported zero lost-time injury frequency rates (LTIFR) and zero fatalities for both employees and workers in FY26, maintaining a strong safety record aligned with its ISO 45001:2018 certification. Water withdrawal increased slightly to 2,32,155 kiloliters from 2,31,320 kiloliters in FY25, primarily sourced from groundwater. Total waste generated rose to 17.45 metric tonnes from 9.04 metric tonnes in the previous year, comprising 12.61 metric tonnes of plastic waste and 4.84 metric tonnes of other hazardous waste. The company aims to achieve Zero Liquid Discharge (ZLD) status at all feasible manufacturing units but has not yet implemented the mechanism fully.

Human Capital and Compliance

As of the end of FY26, Stylam employed 514 permanent employees, including 10 women (2% of the workforce), and 728 permanent workers. The board comprises nine directors, with two women representing 22.2% of the board. The company spent ₹27,770,864 on employee well-being measures, amounting to 0.25% of total revenue. No complaints were recorded regarding sexual harassment, discrimination, or child labor. The company confirmed that its premises are accessible to differently abled individuals as per the Rights of Persons with Disabilities Act, 2016.

Stylam Industries Limited will hold its 35th Annual General Meeting on August 28, 2026, to approve significant changes to its board composition and executive compensation structure. The meeting, scheduled to be conducted via video conferencing or other audio-visual means from the company’s registered office in Chandigarh, centers on implementing a shareholders’ agreement executed on December 26, 2025, with Aica Kogyo Company, Limited. This agreement grants Aica substantial nomination rights, fundamentally altering the governance dynamics of the manufacturing firm.

The most material item on the agenda is the appointment of eight directors nominated by Aica. Shareholders are asked to approve the appointment of Naruhiro Amada as Whole-time Director and Tirloki Nath Singla as Non-Executive Independent Director via special resolutions. Additionally, six non-executive directors—Kenji Ebihara, Nobuyuki Omura, Yuji Iwatsuka, Koshi Suzuki, Makoto Tanaka, and Adisak Thiaphairat—will be appointed through ordinary resolutions. All appointments are effective from June 17, 2026, for a five-year term ending June 16, 2031, except for Amada’s role which is liable to retire by rotation. These appointments align with Regulation 31B of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which governs special rights granted to investors.

Concurrently, the Board seeks shareholder approval to amend the Articles of Association to incorporate these special rights, including quorum provisions ensuring Aica-nominated directors constitute a majority in board meetings. The amendments also allow Aica directors to disclose confidential information to their parent entity for investment monitoring purposes. This structural shift underscores the strategic partnership between Stylam Industries and Aica, a Japanese manufacturer of decorative laminates.

In parallel with the board reshuffle, the company proposes significant increases in managerial remuneration. The annual fixed remuneration for Managing Director Jagdish Gupta and Whole-time Director Manit Gupta will be revised to ₹420 lakh each, effective June 17, 2026. This increase applies until the conclusion of their existing terms, which were previously approved in September 2024 and September 2022, respectively. The resolutions specify that in the event of inadequate profits, this amount shall be paid as minimum remuneration under Schedule V of the Companies Act, 2013. Additionally, shareholders must approve the continuation of Jagdish Gupta’s tenure despite him attaining the age of 70 years, citing his extensive experience and contribution to the company’s growth.

Manit Gupta, who retires by rotation, is also up for re-appointment as Whole-time Director for a new five-year term starting January 28, 2027. His re-appointment package includes the same ₹420 lakh annual fixed remuneration. The Nomination and Remuneration Committee recommended these revisions based on the executives’ leadership roles and the company’s performance. Shareholders holding shares as of August 21, 2026, can vote remotely between August 25 and August 27, 2026, or during the meeting. The register of members will remain closed from August 22 to August 28, 2026.