Stylam Industries Ltd. delivered impressive financial results for the December quarter (Q3FY26), demonstrating strong operational performance across key metrics. The company reported significant growth in profitability while maintaining healthy revenue expansion.

Financial Performance Highlights

The company's financial performance for Q3FY26 showed robust growth across all major parameters:

Net profit for the quarter surged 54.4% to ₹46.00 crore, compared with ₹29.80 crore in the corresponding period last year. This substantial increase in profitability reflects improved operational efficiency and better cost management.

Revenue and Margin Performance

Revenue growth remained steady at 6.5% year-on-year, reaching ₹271.00 crore from ₹254.50 crore in Q3FY25. While revenue growth was moderate, the company demonstrated strong margin expansion capabilities.

EBITDA grew at a faster pace of 21.3% to ₹56.00 crore, up from ₹46.00 crore a year ago. The EBITDA margin expanded significantly to 20.6% in Q3FY26 from 18.1% in the year-ago period, representing an improvement of 250 basis points.

Stock Performance

Despite the strong quarterly results, shares of Stylam Industries Ltd. traded 1.19% lower on Friday at ₹2,178.80. The stock performance reflects broader market sentiment, with shares down 3% so far in 2026.

Stylam industries Limited's Board of Directors has approved the write-off of its investment in Malaysian associate company Alca Vstyle Sdn. Bhd, valued at ₹35.63 lakh. The decision was taken during the board meeting held on January 23, 2026, and disclosed to stock exchanges under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Investment Write-Off Details

The company has provided comprehensive details regarding the investment write-off as mandated by regulatory requirements. The following table summarizes the key aspects of this corporate action:

Reasons for Write-Off

The board's decision to write off the investment stems from the deteriorating financial condition of the Malaysian associate. The company cited continuous losses and erosion of net worth of Alca Vstyle Sdn. Bhd as primary factors leading to the non-recoverability of the investment. This assessment reflects the challenging operational environment faced by the associate company in Malaysia.

Financial Impact Assessment

Despite the write-off of ₹35.63 lakh, Stylam Industries has stated that there will be no impact on the company's financials. This suggests that appropriate provisions may have already been made in the books of accounts, or the investment value had been adequately adjusted in previous reporting periods. The transaction has been classified as a related party transaction, though the company noted that arm's length pricing considerations are not applicable in this context.

Regulatory Compliance

The disclosure was made in compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Company Secretary and Compliance Officer Dhiraj Kheriwal signed the regulatory filing, ensuring all mandatory disclosures were completed. The company has confirmed that no other material information pertains to this transaction, indicating a straightforward write-off process without additional complications or contingent liabilities.