Styrenix Performance Materials Limited reported mixed financial results for Q3 FY26, with revenue declining year-on-year despite strong volume growth and improved operational efficiency. The company held its earnings call on February 02, 2026, to discuss the quarterly performance and business outlook.

Standalone Financial Performance

The company's standalone operations showed resilience in challenging market conditions. Total income for Q3 FY26 declined to INR648.8 crores compared to INR692.2 crores in Q3 FY25, representing a 6.2% year-on-year decrease.

Despite the revenue decline, EBITDA remained nearly flat at INR75.7 crores versus INR75.4 crores, showing marginal growth of 0.4%. More significantly, EBITDA margins improved to 11.7% from 10.9%, an increase of 80 basis points, demonstrating enhanced operational efficiency.

Volume Growth Amid Market Challenges

The company achieved notable volume growth with sales reaching 51.1 KT in Q3 FY26 compared to 47.5 KT in the previous year, marking a 7.6% increase. This volume expansion occurred despite challenging market conditions and pricing pressures in the styrenic polymers segment.

Profit after tax declined to INR44.3 crores from INR47.7 crores, a decrease of 7.51%, while PAT margins compressed marginally to 6.8% from 6.9%.

Nine-Month Performance Overview

For the nine-month period ending December 2025, standalone performance reflected similar trends with total income at INR1,988 crores versus INR2,052 crores in the corresponding previous period.

Thailand Operations Face Headwinds

The company's Thailand subsidiary encountered operational challenges during the quarter. Management explained that inventory built up during the first half of the year faced valuation losses due to significant price declines in both raw materials and finished goods.

Consolidated results for Q3 FY26 showed total income of INR871.3 crores with EBITDA of INR943.5 crores and margins of 5.0%. The Thailand operations are transitioning to the company's Absolac and Absolan brands for ABS and SAN products respectively, requiring customer validations and market development.

Expansion Plans and Market Outlook

Management confirmed that the Phase 1 expansion of ABS capacity remains on track for the second half of FY27. The company is progressing with equipment ordering and construction activities for the 50,000 ton capacity addition. Additionally, a power cost reduction agreement is expected to become effective in February or March 2026, providing operational benefits in coming quarters.

The polystyrene segment showed recovery in Q3 after muted performance in the first half, with the company operating HIPS capacity at nearly 100% utilization. Management noted strong seasonal demand patterns supporting current quarter performance.

Styrenix Performance Materials Limited has informed stock exchanges about receiving an Income Tax order for Assessment Year 2013-14, with no resultant tax demand on the company. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Income Tax Order Details

The order was issued by the Deputy Commissioner of Income-tax and received by the company on January 28, 2026. The proceedings relate to transfer pricing matters involving international transactions and were conducted under sections 143(3) read with section 144C and section 147 of the Income Tax Act.

Financial Impact Assessment

Despite the Income Tax order resulting in additions to the total income for AY 2013-14, there is no tax demand on the company. This is because the additions have been completely set off against brought-forward business losses from previous years.

The company has clarified that the order does not have any material impact on its financial position, operations, or other activities. This neutral impact stems from the offsetting of additions against existing business losses.

Company's Response and Next Steps

Styrenix Performance Materials has indicated that the order is appealable under the Income Tax Act provisions. The company is currently in the process of evaluating the merits of the matter and considering its options.

Key aspects of the company's response include:

• Evaluation of the order's merits is underway
• Right to file an appeal before the Income Tax Appellate Tribunal
• Appeal to be filed within prescribed timelines if decided
• No immediate financial impact anticipated

Regulatory Compliance

The disclosure was made to both BSE Limited and National Stock Exchange of India Limited as part of the company's regulatory obligations. The communication was signed by Chintan Doshi, Manager – Legal & Company Secretary, ensuring proper corporate governance protocols were followed.

This development represents a routine regulatory matter for Styrenix Performance Materials, with the company maintaining that there are no material adverse consequences from the Income Tax order for AY 2013-14.