Stylam Industries Ltd Management Discussions

Economic Overview

Global Economy¹

In CY 2024, the global economy sustained its growth trajectory, recording a growth rate of 3.3%, despite stubborn inflation, ongoing geopolitical tensions, shifting trade dynamics and realignment of supply chains. Growth was supported by strong labour markets and global output advancing towards its full potential. Although the pace of growth eased marginally towards the end of the year, overall performance reflected a stable rebound. Inflation continued to ease from earlier highs, following the accommodative policies undertaken by various Central Banks. Many countries witnessed improved job markets and healthier economic activity. Overall, CY 2024 highlighted the global economys resilience.

Emerging Markets and Developing Economies (EMDEs) led with strong real Gross Domestic Product (GDP) growth of 4.3% in CY 2024, while advanced economies registered a steady growth rate of 1.8%. This improvement was supported by stable demand, better employment conditions and ongoing policy support. While new trade tariffs introduced by the US in April 2025 and responses from other nations may pose a few challenges, the global economy remains positive. Although a few uncertainties prevail, the overall global economic performance remains interconnected and resilient.

Global GDP is projected to decline to 2.8% in CY 2025, rising marginally to 3% in CY 2026. EMDEs are likely to grow by 3.7% in CY 2025 and 3.9% in CY 2026, supported by improved demand and investment, while emerging Asia remains a key growth driver. Advanced economies are further expected to maintain stable growth, with projections of 1.4% in CY 2025 and 1.5% in CY 2026. the U.S. and Euro Area are predicted to register steady progress during this period. With inflation moving in the right direction, global headline inflation is expected to decrease to 4.3% in CY 2025 and 3.6% in CY 2026. Advanced economies will potentially reach near-target inflation of 2.2% by CY 2026, while inflation in EMDEs is expected to ease to 4.6%. Overall, the outlook remains positive with continued economic recovery, policy support and a steady decline in inflation that is expected in the near term.

Indian Economy

Indias economy registered steady improvement in FY 25, especially in the second half of the year. Growth was primarily driven by escalating consumption, better agricultural output, strong services and heightened government expenditure. GDP grew by 6.5% during FY 25, supported by a 7.6% hike in private consumption, 6.1% growth in capital investments, 7.5% expansion in services and 4.6% growth in agriculture. High-frequency indicators further reflected strong momentum. E-way bills surged by 19.4%, GST collections grew by 9.9% in FY 25, toll collections escalated by 11.9%, including steel and cement production with over 10% growth. These trends exhibit the economys steady growth.

Indias external sector remained resilient, with the Current Account Deficit (CAD) valued at around 1.1% of GDP. Services exports grew by 11.8%, with gross FDI inflows escalating by 15.2% to USD 75.1 billion, despite net inflows declining. Other inflows namely external commercial borrowings (USD 15.2 billion) and non-resident deposits (USD 14.3 billion) further strengthened. Foreign exchange reserves reached USD 665.4 billion by FY 25, covering approximately 11 months of imports. Inflation displayed a positive trend, averaging 4.6% for the year, with good farm output, decreased food and fuel prices and timely policy actions and declined household inflation, indicating a stable price environment in future.

Indias economy is set to remain resilient in the upcoming years, with heightened consumption, steady investments and ongoing government expenditure on infrastructure. With India becoming the 4th largest economy in the world and per capita income doubling since 2014, it reflects broad-based growth. Key sectors including agriculture, services and manufacturing display positivity , supported by healthy financial performance of banks and companies, improved rural and urban demand and optimistic business sentiment. Real GDP growth is projected at 6.5% for FY 26 and 6.7% for FY 27. Inflation will potentially remain moderate, with Consumer Price Index (CPI) inflation projected at 4.0% for FY 26 and expected to ease further in FY 27. While global uncertainties such as geopolitical tensions and supply chain disruptions pose some risks, Indias solid fundamentals and policy support provide a stable foundation for sustained economic progress.

Industry Overview

Global Real Estate Sector²

In CY 2024, the global real estate market was valued at around USD 7,384 billion, with North America leading the market, holding the largest share. The sector includes residential, commercial, industrial, and land properties. The residential segment saw the most demand, followed by commercial spaces. Sales made up the biggest part of the market, while offline channels were the main way people bought or rented properties. Key drivers of the market included urbanization, rising incomes, population growth, and government support for housing and infrastructure. Technological advances and interest in eco-friendly buildings also played a role.

North America held over 33% of the global share, with the U.S. being the top contributor. Asia Pacific followed, led by China and India, and showed the fastest growth. Europe also had a strong presence due to stable economies and demand for both homes and commercial spaces. Latin America, the Middle East, and Africa had smaller market shares but showed potential due to urbanization and large-scale government projects. Despite this growth, rising construction costs and limited skilled labor were challenges for the industry.

lighting and clean energy. Integrated townships and homes designed for multigenerational families further gain more popularity.

The commercial office space segment grew further in FY 25, with more companies moving back to physical offices. There is a surging demand for high-quality, smart office spaces with usage of AI and energy-saving technologies. Flexible workspaces and the Core + Flex model are further gaining momentum in the market. In retail and hospitality, escalating urbanisation and boosting incomes drive more consumer expenditure. Shopping centres prioritising customer experience and hotels with high occupancy are becoming widespread. Infrastructure growth will moreover, propel real estate, with government spending on roads, railways and airports boosting demand in smaller cities and satellite towns. New investment opportunities namely data centres, co-living and senior living spaces are expanding. Enhanced rules, such as updated Real Estate Regulatory Authority (RERA) regulations and support for Small and Medium Real Estate Investment Trusts (REITs), promote transparency in the sector, thereby appealing investors. Overall, FY 25 is set to be stable and positive for the real estate sector in India.

Looking ahead, the global real estate market is expected to grow steadily. It is estimated to reach USD 8,690 billion by 2033, growing at a CAGR of 1.81%. Fastest growth is expected in Asia Pacific, driven by demand in countries like India and China. North America and Europe will continue to grow due to strong infrastructure and steady demand. Trends like remote work, smart homes, and green buildings will shape future developments.

Indias Real Estate Sector²

Indias real estate sector registered strong growth in FY 25, building on the solid momentum witnessed in the previous year. Growing at over 9% annually, it was propelled by a strong economy, escalating investor interest and surging demand from consumers. Equity investments in real estate are projected to reach USD 10 billion in FY 25, primarily driven by high interest in commercial spaces and continued resilience in the housing market. The housing segment expects to stay active, with good loan rates and rising demand for smart, tech-enabled homes with features such as AI-based security, automated

Indias real estate sector registers strong signs of sustained growth beyond FY25. In the data centre segment, capacity was projected at 1,255 MW in the previous year and is predicted to surge by 66% over the next two years, covering FY26 and FY27. This highlights steady investment in emerging areas of real estate. In the office space segment, approximately 78% of Indian CEOs believe in a revert to office mode of work in the next three years, suggesting high demand for office spaces through FY26, FY27 and into FY28. Moreover, the housing market is expected to stay active, supported by growing consumer demand and favourable economic conditions. The strong connection between infrastructure development and real estate is set to strengthen, offering more opportunities in housing, commercial and industrial spaces. These positive trends indicate an encouraging future for Indias real estate sector, with a growing role in the countrys economy in the forthcoming years.

Growth Drivers⁴

Strong Market Growth and Rising Demand

Indias real estate sector being one of the key parts of the economy, currently contributes about 7% to the countrys GDP. In FY 25, the sector registered a stable performance, specifically in the residential and commercial segments. Since 2019, the housing market has hiked by approximately 60%, with a major part of this demand emerging from premium and high-end homes. This growth implies that more consumers now have the ability and willingness to invest in better quality housing. As Indias economy and peoples incomes keep growing, the demand for both homes and office spaces is expected to stay strong.

Rise in Commercial Real Estate

Commercial real estate in India is witnessing major expansion due to alterations in Company operations. More Global Capability Centres (GCCs) are operating, in cities namely Bengaluru, Hyderabad, Pune and Gurugram. Hiring in the Information Technology (IT) and services sectors remain steady with many encouraging their employees to revert to physical office spaces. Consequently, there is a growing demand for modern, flexible and technology-enabled office spaces. Offices with energy-efficient systems, smart lighting and digital management tools are becoming the new standard. This accelerated demand further propels large investments in commercial real estate.

Changing Consumer Choices

Today, homebuyers want a place to reside with an elevated lifestyle. Well-planned townships, offering a sense of community, open spaces and shared amenities stand out as ideal for buyers. Many prefer homes that are eco-friendly including features of modern technology, such as AI-powered security systems, smart lighting and automated appliances. These tech-enabled and sustainable homes are gaining popularity, particularly among younger buyers and working professionals. This shift in consumer preference is encouraging developers to build smarter and greener living spaces.

Real Estate Growth in Smaller Cities

Real estate development has expanded beyond major metros like Mumbai, Delhi and Bengaluru. Tier-2 and Tier-3 cities such as Indore, Coimbatore, Lucknow and Bhubaneswar are evolving as new centres of growth, recording rising economic activity, better infrastructure and improved quality of life. Consequently, more people are relocating or investing in these areas. Developers now prioritise these cities to meet the growing demand for housing, offices and retail spaces. Urbanisation beyond Tier-1 cities is opening up new opportunities for the real estate sector.

Government and Policy Support

The governments strong push on infrastructure is driving real estate growth. Large-scale investments in roads, metro networks, highways and airports are improving connectivity nationwide. This is making it easier for people to live and work in new areas, thereby, boosting demand for nearby housing and commercial projects. Future budget policies could further support the sector, with escalating tax deductions on home loans, providing tax benefits for green buildings and advancing the approval process through a single-window system. Support for affordable housing, student accommodation, rental homes and housing near industrial zones is under consideration. These steps thus, attract more investments, propelling an organised and sustainable growth of the real estate.

Global export market⁵

In CY 2025, the global export market for goods is expected to remain largely stable, with only a slight dip of 0.2%, as per the World Trade Organization (WTO). While this marks a change from the 2.9% growth seen in CY 2024, it also reflects the resilience of global trade despite ongoing challenges. The slight slowdown is mainly due to trade policy uncertainties and tariff issues, particularly between the United States and China. However, this also opens up room for new trade relationships and diversification. If these tensions ease, trade performance could improve.

Across regions, some areas are still expected to show growth. Asias exports are likely to rise by 1.6%, and Europes by 1.0%, helping to support overall trade activity. Even with reduced trade between the US and China, Chinese exports to other global markets could grow by 4% to 9%, creating positive shifts in trade flows. This shift could also benefit other exporting nations, especially least-developed countries (LDCs), who may find new opportunities to expand their presence in global markets. The evolving global landscape presents a chance for emerging economies to grow stronger and become key players in international trade.

Indias Export Market

In FY25 Indias top export destinations stayed largely the same, indicating steady trade ties with key global partners. The US remained the biggest market for Indian goods, constituting a large part of Indias total exports. The UAE was a vital trading partner, for items namely petroleum products, gems, jewellery and textiles. The Netherlands being a major buyer in Europe, predominantly imported petroleum products and chemicals from India. The UK, another key destination, has strong demand for Indian pharmaceuticals, textiles and engineering goods. Moreover, China stayed a crucial trade partner, primarily importing organic chemicals, minerals and some agricultural items.

In FY 25, Indias total exports reached a record high of USD 824.9 billion, displaying a 6.01% hike from the previous years USD 778.1 billion. This growth was primarily supported by strong service exports, surging to USD 387.5 billion, registering a 13.6% increase since last year. In March 2025, services exports were USD 35.6 billion, recording 18.6% hike from March 2024. Non-petroleum merchandise exports expanded by 6% to USD 374.1 billion, projecting the highest ever in this category. These figures highlight the strong and steady growth in Indias export market in FY 25.⁶

Indias Total Exports Value (in USS Billion)

Global Furniture Industry⁷

The global furniture market includes items used in homes and businesses, such as chairs, tables, beds, cupboards and desks. These products are made from materials namely wood, plastic and metal. In FY 25, the total market size was approximately $822.53 billion with steady growth expected in the forthcoming years. This rise is mainly due to heightened demand for homes, offices, eco-friendly furniture trends, lifestyle alterations and the popularity of do-it-yourself (DIY) home setups. Key reason for this growth being the booming real estate market, which, thereby, increases furniture demand.

The market is categorised into home furniture, office furniture, mattresses and window coverings. The Asia- Pacific region was the largest market, followed by Western Europe and North America along with countries namely the US, China, India, Germany and Japan playing a crucial role. However, shifting global trade rules and taxes offer opportunities for furniture companies to explore international markets, adjust pricing strategies, thereby, improving furniture exports.

Furniture Global Market Report 2025 Market Size (in USD billion)

Indias Furniture Industry⁸

In FY 25, India has become the worlds fourth-largest furniture market, valued at around USD 22 billion, highlighting a major leap in 10 years, thereby, displaying the rapid growth of the industry. Within Asia-Pacific, India is now the second-largest market after China. The industrys growth is being driven by strong factors such as government support, rapid urbanisation, rising incomes, accelerated expenditure for homes and offices. The market is further becoming organised and competitive, with more global brands entering India and modern retailers replacing smaller and unorganised sellers.

Looking ahead, the Indian furniture market is expected to sustain growth at a rapid pace beyond FY 26. Factors including the growing middle-class, expansion of organised retail and rising demand for designer and modern furniture will keep propelling industrys growth. The shift towards more efficient and large-scale production, with increasing exports, will strengthen Indias position in the global market. As more international brands and investments enter the country, the industry will potentially emerge as more competitive and innovative, making India a key player in the global furniture business.

Global Laminates Industry⁹

The global decorative laminates market, valued at USD 47.7 billion in CY 2024, is expected to grow steadily and reach USD 63.7 billion by CY 2033 with a CAGR of 3.3% from 2025 to 2033. Decorative laminates provide surfaces with a designer, durable and realistic finish. Widely used in furniture, flooring and wall panels they are valued for being cost-effective, convenient to maintain and of various designs. This growth is driven by rising demand for both modern interiors and construction activities, specifically in developing countries due to urbanisation, higher disposable incomes and the growing popularity of DIY home improvement. Technological improvements have made laminates more realistic and long-lasting with a growing shift towards eco-friendly options from recycled materials, produced via low-emission processes.

In CY 2024, Low-pressure Laminates (LPL) constituted over 80% of the market for their affordability and extensive use. The furniture and cabinet segment led the applications with a 53.2% share, while the non-residential sector comprised 56.4% of usage. Matte and suede finishes were preferred for their modern look and low maintenance, while mass-market products constituted 71.8% with the organised sector dominating 80.2% for their better quality and service. The Asia-Pacific region led globally with a 45.1% market share, supported by strong growth in India and China. The U.S. further played a key role with strong demand and advanced production.

Indian laminate industry

In FY25, Indias decorative laminate market showed steady growth, supported by strong demand from both residential and commercial sectors. The market includes products like plastic resin, overlays, adhesives, and wood substrates used in applications such as furniture, cabinets, flooring, and wall panels. These laminates are widely used for their look and durability, especially in furniture like shelves, cupboards, and doors. The furniture industry remained the largest consumer, with office furniture seeing rising demand due to new office construction and more companies expanding their operations. The furniture rental market also grew rapidly, with the office segment reached to USD 13 billion in FY 25.

The residential sector played a major role in market demand. Government investments in housing and infrastructure, including increased funding for PM Awas Yojana and the Urban Infrastructure Development Fund, boosted the need for decorative laminates. Growth in tier 2 and 3 cities and rising urban population added to the demand. Indias strong construction activity, rising middle-class income, and increased focus on home interiors helped drive sales.

Indias decorative laminate market is expected to grow at a rate of over 5% per year from 2025 to 2030. The growing construction and furniture industries will continue to support this growth. As more people earn higher incomes, the demand for stylish and low- maintenance furniture is likely to rise. At the same time, there are some challenges substitutes like veneer may affect market share. However, with rising urbanization, government-backed housing schemes, and more multinational companies entering the Indian market, decorative laminates are expected to find growing use in both homes and offices. The market remains fragmented, with many players, offering room for both established brands and new entrants to grow.

Global Acrylic Solid Surface Industry¹⁰

In CY 2024, the global acrylic solid surface market was valued at approximately USD 1.99 billion. Materials commonly used in kitchen countertops, bathroom vanities and wall panels, especially in homes and commercial spaces are popular for their durability, convenience and resistance to stains and scratches. The markets growth in CY 2024 was supported by growing construction activity, particularly in cities with demand for versatile and modern building materials. Manufacturers attempted to use recycled materials and improve production methods through sustainable practices. However, the market faced challenges, such as environmental concerns over plastic utility and tough competition from other building materials including granite, quartz and laminates.

Some well-known companies, active in the market during the year, launched new products, introducing fresh designs that prioritised designer and realistic finishes. This highlights the significance of innovation and continuous product development in the acrylic solid surface industry. Many manufacturers improved the quality, durability and appearance of the products to keep pace with changing consumer preferences and design trends. Efforts were attempted to meet the heightened demand while adapting to market alterations. Overall, the performance of the market in CY 2024 set a solid base for future growth.

Indian Acrylic Solid Surface Industry

In FY25, the Indian Acrylic Solid Surface market saw steady demand, supported by strong economic growth and increasing use in homes, hotels, and hospitals. These surfaces are used in kitchen countertops, bathroom sinks, furniture, walls, and even lighting. Their smooth finish, durability, and easy maintenance make them popular choices. The market is divided by product type mainly casting molding and extrusion molding. Casting molding remains the most widely used, making up a large share of the market. Key applications in India include private homes, healthcare, and the hospitality sector. Many global and local companies operate in India, including DuPont, LG Hausys, Durlax, and others.

Indias large population and rising demand for betterlooking and more functional home and commercial interiors helped the market grow in FY25. Indian customers increasingly looked for modern design solutions, boosting the need for acrylic solid surfaces. APAC, including India, remained the largest consumer region worldwide. In India, both value (sales in USD) and volume (sales in units) of acrylic solid surfaces saw good growth, with companies focusing on new applications and improved products.

Indias Acrylic Solid Surface market is expected to grow quickly. Demand will rise due to more construction in both housing and commercial spaces. As more people in India choose stylish and long-lasting surfaces for kitchens and bathrooms, the market will see further expansion. The casting molding type will continue to dominate the market, but new technologies and designs may bring changes. Growth will also be driven by hotels, hospitals, and real estate developments across cities. As part of the Asia-Pacific region, India will play a bigger role in global consumption.

Global Decorative Laminates Industry

The decorative laminates are laminated materials used for both household and business applications. They are adaptable and durable, and it is generally used to enhance the appearance of furniture, cabinets and walls. In CY 2024, the global decorative Laminated industry grew by USD 8.13 billion. This growth was primarily driven by growing customers interest in transforming the appearance of the house. The global decorative laminated industry can be divided into high-pressure laminates and low-pressure laminates. Among these, the high-pressure laminated segment made a significant contribution to the total revenue generated during the reported year. The demand for high-pressure laminates remained high, due to improved functional properties such as scratch resistance, chemical resistance, and antimicrobial characteristics. Moreover, with growing awareness of environmental sustainability among consumers, the demand for eco-friendly decorative laminates has risen. This shift in the industry highlights the uniform efforts to reduce the carbon footprint.

In the coming years, the global decorative laminates industry is anticipated to grow at a CAGR of 5.09% from 2025 to 2030 and attain a market size of USD 10.96 billion by 2030. This growth in the industry during the forecasted period is anticipated to be driven by urbanisation and evolution in the consumer demand for cost-effective and stylish interior solutions. Along with this, the North American markets are anticipated to make a significant contribution to the global decorative laminated industry in the coming years. Along with this, the Asia Pacific region is anticipated to grow at the fastest pace, supported by rapid industrialisation and growing consumer spending for both residential and non-residential activities.

Indian Decorative Laminated Industry

The Indian Decorative Laminated Industry was driven by evolving consumers preferences, economic growth and innovation within the industry. Moreover, with technological advancement, the Indian Decorative Laminated industry has enabled in offering of high- quality laminates that mimic natural textures such as wood and stone. Based on the product type, the domestic industry can be divided into High Pressure Laminates and Low-Pressure Laminates. The Low-Pressure Laminates constituted 62.1% of the market during the reported year. Moreover, since it offers a balance between affordability and aesthetic appeal, the Low Pressure Laminates became a popular choice among the consumers.

In addition to this, the premium decorative laminates held the largest share in the industry, and this was supported by growing reference for high-quality, aesthetically superior, and durable interior solutions.

The Indian decorative laminates industry in India is moderately fragmented, where there is the presence of both organised and unorganised players across various price points and product types. The key players in the industry emphasised design innovation, sustainability, and digital engagement as a strategy to distinguish themselves in the industry. Moreover, the organised players in the industry constituted 65.8% share in the domestic industry. This was supported by their keen focus on strengthening their brand presence, consistent quality, robust distribution network and product innovation. Further to this, Northern India had a significant share in the overall decorative laminates industry in India owing to rapid urbanisation in these regions.

The Indian decorative laminate industry is anticipated to grow at a CAGR of 4.81% from 2025 to 2033 and further attain a market size of USD 2.95 billion by 2033. Moreover, the growth in the Indian Decoratives Laminate industry is anticipated to be supported by various factors, including increasing disposable income and urbanisation.

Company Overview

Stylam Industries has been specialising in the manufacture of high-quality building materials for over 34 years. The Company is known for creating high- quality, elegant and eco-friendly surfaces, harnessing modern technology and innovative design, with a focus on meeting customer requirements. It aims to be a global leader in surface solutions, offering products that enhance spaces. Stylam prioritises key values such as quality, innovation, sustainability and honesty, through the usage of reliable raw materials and meticulous product checking. The Company promotes green manufacturing with the help of a skilled workforce by providing creative and durable surface solutions.

Initially starting as Golden Laminates Private Limited, a private firm, the Company later transformed into a public business. It has been listed on the Bombay Stock Exchange (BSE) and was recognized as an export house by the Government of India. With growing global expansion, the Company was renamed Stylam Industries Limited and progressed with key innovations like Fascia (HPL exterior cladding), VIOLAM (a premium brand), Indias first acrylic solid surfaces and the worlds first hot coating press machine. The Company also introduced anti-fingerprint and high-gloss boards for restroom cubicles, lockers by utilizing the short cycle press. Stylam has been listed on the National Stock Exchange (NSE) and operates debt- free, demonstrating financial resilience.

Stylam functions with a state-of-the-art plant equipped with machines from France, Germany and Italy. As one of the most advanced facilities in India, it is poised to emerge as the largest laminate factory in Asia. The Company produces 20 million sheets every year, including one million hot-coated sheets and 300,000 acrylic solid surface panels. The Companys product range includes over 1,200 laminate designs, solid surfaces, anti-fingerprint laminates and prelam boards for both indoor and outdoor use. Stylam is accessible to customers world-wide, supports multiple languages and offers helpful tools like a design visualiser, 360? virtual tour and e-catalogue. With robust administration and a focus on sustainability, the Company has been recognised through several global certifications which testify its sustainable legacy

Stylam stands as a dominant force in both national and international markets, driven by an unwavering ambition to set new benchmarks in surface innovation. Our world-class infrastructure enables us to manufacture a vast range of premium surface solutions, meeting the evolving demands of the building materials industry. Equipped with cutting-edge machinery and advanced technology, our single-location plant is one of the most dynamic laminate manufacturing units in the country. Soon to become the largest laminate manufacturing facility in Asia, this achievement underscores our commitment to excellence. Our manufacturing process is further strengthened by imported moulds from France and Germany, alongside state-of-the-art equipment such as the Italian IMEAS Machine for back sanding, ensuring precision, superior quality, and unparalleled finishing in every product we create.

Stylams manufacturing capabilities extend across a wide spectrum of sizes, offering dimensions from 1220 x 2440 mm to 1860 x 4320 mm, with sheet thickness ranging from 0.5 mm to 30 mm. These laminates are available in an extensive variety of finishes, including gloss, matte,

suede, and textured surfaces, catering to diverse design preferences. With a constantly expanding portfolio of over 1,200+ unique laminate designs, we continue to push the boundaries of creativity and innovation. Our expertise also includes the production of Anti-Fingerprint and High-Gloss laminates in 1mm and above thickness, as well as Prelam Boards in 18mm to 25mm thickness, ensuring versatility for both interior and exterior applications

Opportunities

Expansion of Global and Domestic Presence

Stylam sells its products to more than 80 countries, including Europe, the Middle East, the Far East, the Americas, Asia and Africa. About two-thirds of its revenue comes from exports. In India, Stylam has a strong presence across 28 states and over 2,000 cities, supported by a wide network of distributors, dealers and retailers. The Company is expanding its international presence while strengthening its reach within India. A new laminate plant near its existing unit in Panchkula, Haryana, is expected to begin operations. This will be Stylams third laminates plant and will boost its export capacity.

Diverse and High-Quality Product Portfolio

Stylam offers a wide range of surface products including wood designs, marble finishes, fabric looks, solid colours, patterns and specialty laminates like mirror, magnetic and digital types. Anti-fingerprint surfaces, high-gloss laminates and solid surfaces under the brands Granex and Marvella constitute its unique product portfolio. The Company was the first to introduce Polyurethane (PU+) lacquer coating and solid acrylic surfaces in India. This variety helps Stylam meet all customer requirements, thereby consolidating its strong market position.

Large Manufacturing Capacity

Stylam operates an extensive manufacturing unit currently spread across 58 acres. With the upcoming expansion, it will grow to 80 acres, becoming Asias largest. The Company can produce around 16 million laminate sheets annually. The plant is equipped with advanced press systems to manufacture large sheet sizes. They also produce hot-coated laminates and solid acrylic panels in large numbers. With the current capacity usage between 74% and 85%, Stylam has the potential to increase production even before the new plant commences production.

Financial Strength

Stylam is a net debt-free Company and plans to sustain its position even while building a new plant. The Company has demonstrated strong growth in terms of profits and continues to build its net worth. Through effective financial management, Stylam is in a good position to invest in long-term growth.

Innovation and Technology

Stylam prioritises new ideas and technologies. The Company globally pioneered the hot coating process and was the first to introduce solid acrylic surfaces in India. The Company uses advanced machinery, imported tools and high-precision systems to manufacture high-quality products. Stylam plans to expand its range of value-added products to meet dynamic customer requirements.

Market Trends

Stylam is well-positioned to benefit from the growing global demand for designer and durable surface materials. In India, the construction of homes and commercial buildings due to rapid urbanisation and increased government investment in infrastructure have resulted in greater consumer expenditure. There is a rising preference for eco-friendly materials, which aligns with Stylams focus on sustainable practices. With the expansion of the organised sector in India, Stylam expects to gain more market share. The projected growth of the global furniture industry supports Stylams future product demand.

Brand Reputation

With over 30 years of experience, Stylam is reputed for high-quality building materials. Along with international recognition gained through certifications and awards, the Company has been certified as an export house by the Government of India and listed by the Financial Times and Forbes among fastgrowing companies. Stylam also focuses on good customer service and supports social and environmental causes, helping build a strong and positive brand image.

Threats

Geopolitical Tensions and Trade Barriers

Some countries, especially advanced economies like the US are increasing tariff regulations on imports. Consequently, Indias US exports are expected to decline in CY 2025. Similar restrictions on building materials, are anticipated to impact premium building materials companies by escalating product prices and reducing market competition. The introduction of non-tariff barriers such as stricter quality checks, product certifications and technical standards may significantly decelerate approvals, increase paperwork and impact exporter performance. Since Stylams revenue is primarily generated from exports, these alterations in trade policies and international shipping rules can pose significant challenges. Higher costs, longer delivery times and limited access to certain markets may negatively influence business without efficient management. However, Stylams extensive global network and high quality standards strengthen it to adapt to these changes, consistently driving international growth.

Rising Input and Raw Material Costs

The cost of vital raw materials such as paper, resin and chemicals have recently escalated. However, the inability of companies to increase their product prices in the export markets in accordance with the rising costs, has considerably decreased the gross margin. This has affected laminate manufacturers, including leading companies, reducing their overall earnings with many witnessing a decline in their Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margins in FY 25. The rise in only raw material prices without an increased selling price may continue to pressurise profits.

Product Portfolio

High-Pressure Laminates (HPL)-Crafted with high-grade kraft papers and decorative layers fused under high pressure and heat, HPLs deliver exceptional durability while maintaining an aesthetic appeal. Suitable for both interiors and exteriors, they are ideal for cladding, furniture, countertops and wall panelling. Stylam offers the largest selection of HPL surfaces. Both HPL and Compact Panels contain double the amount of Post-Consumer Recycled Content(PCR), compared to other industries.

Kitchenate- Engineered for modern kitchens, Kitchenate laminates offer excellent resistance to moisture, heat and stains. Designed to withstand everyday cooking, it combines style and functionality for use in countertops, cabinets and backsplashes.

Play & Slay- A vibrant and playful laminate range perfect for spaces designed for children or creative environments. It features bold patterns and bright colours curating durable surfaces that bring energy to playrooms, schools and other dynamic areas.

Stella - Designed for premium interiors with unique textures, subtle designs and a luxurious finish, the Stella range embodies elegance and sophistication. Stella Tiles are an innovative addition to spaces, offering lightweight, versatile and resistant surfaces that enhance appearance with refined decorative aesthetics.

Stylam Laminate - Built to endure the extreme conditions at laboratories and healthcare environments, these laminates are resistant to chemicals, stains and heat, thereby, providing hygienic, durable surfaces for worktops, cabinetry and cleanroom applications. Moreover, they offer excellent abrasion and scratch resistance.

Chalk and Marker Laminate - Redefining convenience with erasable and reusable surfaces, these laminates offer ideal solutions for writing, sketching and notetaking. Perfect for classrooms, offices, or collaborative workspaces, it provides a durable and affordable writing surface.

Flicker Laminate- Infused with subtle metallic accents that shimmer under the light, Flicker Laminate adds sparkle and depth to surfaces. It is ideal for retail spaces, luxury interiors and decorative commercial applications.

Metallic Laminate - Combining the sophisticated look of real metal with the practicality and durability of laminates, Metallic Laminate are ideal for use in walls, furniture and interior surfaces, offering easy maintenance and an elevated contemporary aesthetic.

Electro-Static Laminate- Designed with durability to prevent electrostatic discharge, these laminates are essential for safety in sensitive environments such as laboratories and cleanrooms.

TouchMe - Anti-Fingerprint Laminate - These laminates feature an ultra-matte, smooth-touch finish that is resistant to fingerprints and smudges. Engineered with anti-bacterial properties, they help maintain cleanliness in high-traffic areas.

TouchMe - Anti-Fingerprint Prelam Board- Combining ultra-matte, low-maintenance technology with superior durability, these boards offer a soft, velvety feel that is resistant to smudges and stains. The antifingerprint prelam board production technology was introduced in 2021.

GlossPro+ High Gloss Prelam Board- Designed with a mirror-like shine to elevate interiors, these boards are ideal for furniture and cabinetry. They offer enhanced surface protection and a premium appearance. The high gloss prelam board technology was introduced in 2021.

Performance of the year	FY 25	FY 24
Net Revenue	1,025	914
Material Consumption	557	474
Contribution	468	440
Contribution Margin (%)	46	48
Employee Expenses	84	75
Other Expenses	199	180
EBITDA	185	183
EBITDA Margin (%)	18.06	20.06%
Other Income	7	6
Finance Costs	4	2
Depreciation and Amortization	24	22
Less: Exceptional Items	-	1
PBT	165	164
PBT Margin (%)	16.08%	17.97%
Tax Expense	43	36
PAT	121	128
PAT Margin (%)	11.81%	14.04%

 

Performance of the year	FY 25	FY 24
Share Capital	9	9
Other Equity	649	528
Shareholders Fund	658	537
Deferred Tax Liabilities	1	2

 

Performance of the year	FY 25	FY 24
Provisions	7	5
Short term borrowings	36	0
Total Debt	36	0
Trade Payables	46	-
Other Liabilities	30	24
Total Liabilities	779	605
Fixed Assets	175	172
Capital work in progress	83	2
Investment	1	1
Other non-current assets	49	25
Loans & Advances	2	2
Total non-current assets	312	205
Inventory	185	145
Trade receivables	204	161
Cash & Bank	50	72
Other Assets	28	22
Total Assets	779	605
Return ratios	FY 25	FY 24
Current Ratio	4.35	6.88
Debt-Equity Ratio	0.18	0.13
Debt Service Coverage Ratio	4.02	0.00
Return on Equity Ratio	0.05	0.07
Inventory Turnover Ratio	3.37	3.11
Trade Receivables Turnover Ratio	5.62	6.46
Trade Payables Turnover Ratio	13.54	11.08
Net Capital Turnover Ratio	2.86	2.67
Net Profit Ratio	0.12	0.14
Return on Capital Employed	0.22	0.28
Return on Investment	6.59	0.06
Debtors Days	73	64
Inventory Days	121	112
Interest Coverage Ratio	43.09	66.87

Risk Mitigation

Risk	Description	Mitigation strategy
International Market Risk	Around two-thirds of revenues are from exports; thus, economic fluctuations in global markets pose a major risk.	Geographic diversification with exports to 80+ countries and efforts to expand coverage in new export regions.
Execution Risk	Challenges in implementing strategic goals such as capacity expansion, product innovation and geographic expansion.	The Company has clear strategic roadmap, modular plant expansions and investments in new facilities to support growth execution.
Technological Risk	Rapid technological advancements or failure to implement new technologies can impact competitiveness.	The Company invests in Research and Development (R&D) and adopts advanced technologies such as the hot coating process, short cycle press and solid surface manufacturing to enhance product quality, efficiency and innovation.
Market Preference Shifts	Changes in consumer trends or interior design preferences could reduce demand for existing products.	The Company offers a wide product portfolio for varied applications while continuously innovating design and finish options.
Currency Risk	Exposure to foreign exchange fluctuations, particularly USD/INR, which can affect profitability.	The Company uses hedging strategies to manage currency risk and reduce the impact of foreign exchange volatility on its financial performance.

Internal Control Systems

The Company has set up internal control systems that are well-suited to its size, the way the Company operates and the type of business it does. These systems are designed to cover all key functions such as finance, operations, compliance and risk management. Skilled internal and external auditors regularly review and test these systems to make sure they are working well. These controls help ensure that all financial records and reports are clear, correct and easy to verify. They also help the Company follow all legal and regulatory requirements, protect its assets from loss or misuse and identify any major risks in advance so that the right steps can be taken to reduce or avoid them. This approach supports better decision-making and helps the Company run smoothly and responsibly.

Cautionary Statement

Some parts of this Management Discussion and Analysis (MD&A) talk about Stylam Industries goals, plans and expectations for the future. These are called "forward-looking statements" under the law. What actually happens may be very different from what is mentioned here. Things that could affect the Companys performance include a slowdown in the industry, major political or economic changes in India or other countries, changes in tax laws or import duties, legal issues and labour matters.

Performance at a glance of last 10 years

PERFORMANCE OF THE YEAR	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
REVENUE	214	249	294	338	461	462	480	659	952	914	1025
% GROWTH	16%	17%	18%	15%	36%	0%	3%	38%	44%	-4%	12%
Expenditure	196	224	257	309	410	414	410	587	826	754	868
EBITDA	22	30	47	52	80	80	99	104	155	183	185
EBITDA MARGIN	10%	12%	16%	15%	17%	17%	21%	16%	16%	20%	18%
Other income	1	1	0	0	2	1	1	8	1	6	7
Depreciation & Amortisation	4	5	6	11	18	21	23	23	20	22	24
Finance Cost	5	7	10	8	11	11	6	8	8	3	4
PBT	14	20	31	33	52	49	71	81	128	164	165
PBT Margin	6%	8%	11%	10%	11%	11%	15%	12%	13%	18%	16%
PAT	9	12	20	20	39	34	55	61	96	128	121
PAT Margin	4%	5%	7%	6%	8%	7%	12%	9%	10%	14%	12%
EPS	13	17	25	25	43	23	33	36	57	76	71

 

FINANCIAL PERFORMANCE	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Share Capital	7	7	7	9	9	9	9	9	9	9	9
Other Equity	37	49	69	138	177	196	251	308	404	528	649
Shareholders Fund	44	56	77	147	186	204	260	317	412	537	658
Deferred Tax Liabilities	2	2	2	6	9	13	12	11	10	2	1
Provisions	3	4	7	2	2	3	3	3	4	5	7
Borrowings	82	117	184	162	189	119	59	80	47	-	36
Trade Payables	13	21	18	34	27	36	52	58	40	38	46
Other Liabilities	11	17	24	32	36	37	37	35	39	24	30
Total Liabilities	149	211	303	375	438	395	407	489	538	605	779
Fixed Assets	49	56	73	137	147	195	188	179	172	172	175
CWIP	31	55	109	1	13	11	0	0	13	2	83
Investment	-	-	-	0	1	2	1	1	1	1	1
Other non-current assets				3	7	2	3	2	2	25	49
Loans & Advances	9	13	11	1	1	1	1	2	2	2	2
Total non-current assets	79	112	183	190	227	211	193	183	189	205	312
Inventory	26	43	54	61	66	67	72	133	160	145	185
Trade receivables	34	40	47	57	79	87	99	119	126	161	204
Cash & Bank	2	2	1	4	2	6	15	8	26	72	50
Total Assets	149	211	303	375	438	395	407	489	538	605	779