Stylam Industries Ltd Management Discussions

Economic Overview

Global Economy

The global economy remained resilient in CY 2025, with GDP expanding by 3.3% even amid trade tensions and policy uncertainty. The expansion was supported by technology-led investments, resilient consumer spending and accommodative financial conditions. Inflation moderated to around 4.1%, strengthening capital inflows and currency stability. This environment enabled Central Banks to transition towards a more accommodative stance with a gradual reduction in interest rates and continued policy easing.

Growth trends remained uneven across economies. While advanced economies recorded moderate expansion amid persistent inflationary pressures and

elevated public debt levels, Emerging Market and Developing Economies (EMDEs) remain important contributors to global growth. However, several EMDEs, particularly commodity-importing economies, faced challenges arising from higher energy costs, currency volatility, external financing constraints and weaker global demand.

Further, global trade remained robust, particularly in technology-related products. While investments in digital infrastructure and advanced manufacturing supported economic activity across major regions. Further, rising geopolitical risks, trade fragmentation, supply chain disruptions and financial market uncertainties constrained broader global growth momentum during the year.

Global economic growth is projected at 3.1% in 2026 before improving marginally to 3.2% in 2027. Supportive factors like easing tariff regimes alongside continued fiscal and monetary measures are expected to help sustain underlying economic momentum. Emerging Market and Developing Economies (EMDEs) are projected to remain important contributors to global growth, driven by urbanisation, infrastructure development, manufacturing expansion, and rising domestic consumption.

However, the outlook remains subject to geopolitical uncertainties, energy market disruptions, trade fragmentation, and persistent inflationary pressures. Commodity-importing developing economies remain particularly vulnerable to external shocks. Global inflation is expected to edge up to 4.4% in CY 2026 before moderating to 3.7% in CY 2027, reflecting easing labour market conditions across several economies .

Nevertheless, ongoing investments in innovation, renewable energy, infrastructure, and technology adaptation are expected to support economic activity and productivity gains. These developments are projected to enable the global economy to maintain a positive, albeit moderated, growth trajectory over the medium term.

Indian Economy

India remained among the worlds fastest-growing major economies in FY2025-26, as real GDP growth accelerated to 7.7% from 7.1% in FY2024-25. This growth was supported by strong domestic demand, both rural and urban private consumption, GST rationalization, and monetary easing. Government infrastructure spending, structural reforms, and favorable financial conditions also boosted investment activity. On the supply side, manufacturing activity expanded by 11.5%, led by infrastructure and construction goods. This industrial growth was supported by lower input costs and higher profits for listed manufacturing firms. Simultaneously, real estate was the largest growth contributor, further sustained by expanding financial intermediation and healthy gains in insurance premiums.

On the external financing front, gross foreign direct investment (FDI) experienced strong growth, while net FDI showed improvement. Indias foreign exchange reserves reached US$ 697.1 billion. Furthermore, as inflation moderated to 3.4%, the reduction in price pressures enabled the RBI to implement a cumulative 125 basis points cut to the policy repo rate. These actions maintain stable borrowing costs and support the market sentiment required for sectoral growth.

outlook

Indias economic outlook is expected to remain supported by continued structural reforms and favourable supply conditions. Tariff-related trade disruptions and volatility in capital flows may occasionally impact exports and investor sentiment. However, healthy capacity utilisation, improving credit growth and continued government focus on capital expenditure are expected to support investment activity, with GDP growth rate projected at 6.6% for FY 2026-27.

Supply-chain disruptions due to the West Asia conflict could tighten the availability of key inputs for downstream sectors, including plastics and chemicals, which may weigh on economic activity. Despite these challenges, CPI inflation for 2026-27 is projected at 5.1%, supported by favourable supply-side conditions, including adequate reservoir levels and the continued benefits of GST rate rationalisation.

Investment activity is expected to remain positive, supported by strong capacity utilisation, credit flows and ongoing government capital expenditure, while resilient services activity and stable employment conditions are expected to support domestic consumption. Further, the recent bilateral and regional trade agreements with major trading partners are expected to boost Indias trade and investment opportunities, widen and diversify its trading partners and integrate India into global value chains.

Industry Overview

Global Real Estate Industry

The global real estate industry demonstrated resilience in 2025, supported by rapid urbanisation, population growth, rising household incomes and increasing investments in residential, commercial and industrial infrastructure. The sector remains a key contributor to global economic activity, facilitating capital formation, employment generation and urban development across both developed and emerging economies. The market attained a value of ~USD 7.5 trillion in 2025, highlighting the importance of real estate as an asset class and investment destination.

Advanced technologies and financial structures continue to reshape the broader real estate landscape, significantly enhancing operational efficiency and market transparency. The integration of Property Technology (PropTech), artificial intelligence and virtual platforms has optimised transaction execution while improving customer engagement. Furthermore, the growing adoption of Real Estate Investment Trusts (REITs)

has expanded investor participation, providing broader access to diversified real estate assets and increasing overall market liquidity.

The sales segment remained the dominant category within the global real estate market, accounting for ~62.8% of the total market share in 2025. Demand was supported by favourable demographic trends, increasing wealth creation and the preference for property ownership as a long-term investment. Distribution channels remained largely dominated by traditional office transactions, which represented ~82.8% of the market, reflecting the importance of physical property inspections, local market expertise and personalised advisory services in real estate transactions.

Regionally, North America accounted for the largest share of the global market, representing approximately 33.4% of total industry revenues. The region benefited from a mature real estate ecosystem, high institutional participation, advanced financing mechanisms and strong demand across residential, commercial and industrial asset classes. Emerging economies witnessed growing investments in urban infrastructure, industrial corridors and smart city developments, contributing to the broader expansion of the global real estate industry.

The industry also witnessed increasing emphasis on sustainable construction practices, energy-efficient buildings and environmentally responsible development. Growing awareness of climate-related risks, evolving regulatory frameworks and investor preference for sustainable assets have encouraged developers to integrate green building standards, resource-efficient technologies and sustainable design principles into new projects. These developments are expected to further transform the industry and create long-term value across the real estate ecosystem.

^Houtlook

The global real estate market is expected to maintain a steady growth trajectory, expanding at a CAGR of approximately 1.66% during 2026-2034 and reaching an estimated value of ~USD 8.76 trillion by 2034. Future growth is expected to be supported by rapid urbanisation, infrastructure development, rising demand for

residential housing and increasing investments across commercial, industrial and mixed-use developments. Technological innovations, including artificial

intelligence, digital transaction platforms, data-driven property management and smart building solutions, are expected to further enhance operational efficiency and customer experience across the sector.

Indian Real Estate Sector

Indias real estate sector strengthened its position as a key contributor to economic growth, urban development and employment generation. Spanning residential, commercial, retail, industrial and logistics segments, the sector has benefited from rapid urbanisation, evolving customer preferences, rising income levels and increasing infrastructure investments. The sector contributed ~7.3% to the countrys GDP in 2025 and remained among Indias largest employment generators,

reflecting its significant economic and social impact. The market was valued at ~USD 650 billion in 2025, supported by sustained demand across asset classes and growing participation from Institutional investors. The increasing adoption of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) has further enhanced transparency, liquidity and capital access across the sector.

Several structural drivers bolstered industry growth during the year. Rising urbanisation is expected to increase demand for housing and urban infrastructure, while public investments in infrastructure development is strengthening connectivity and supporting real estate activity across emerging growth corridors. Demand for commercial real estate remained robust, supported by the expansion of Global Capability Centres (GCCs), increasing office space absorption and the growing preference for flexible workplace solutions. Robust activity in industrial, warehousing and retail real estate reflects the expansion of manufacturing, e-commerce, logistics and organised retail. Simultaneously, the sector is modernising through increased institutionalisation and digital transformation. Adopting technology across project planning, construction, asset management and customer relations is now vital for improving operational transparency, driving efficiency and creating long-term value.

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The Indian real estate sector is expected to maintain a positive long-term growth trajectory, supported by rapid urbanisation, infrastructure expansion, favourable demographics and increasing formalisation of the industry. The market is projected to reach ~USD 1 trillion by 2030, with long-term potential to exceed USD 5.8 trillion by 2047. Growth is expected to be supported by rising housing demand, increasing institutional investments, expanding REIT participation and sustained development across residential, commercial, industrial and retail segments. Adoption of advanced digital technologies to drive core business growth and transformation by integrating data-driven planning, Building Information Modelling (BIM), AI and smart asset management, the industry anticipates significant improvements in project execution, overall operational efficiency and end- user customer experience. While challenges relating to regulatory compliance, technology adoption costs, workforce capabilities and broader macroeconomic uncertainties remain, the sectors strong structural fundamentals and ongoing policy support are expected to support sustained growth and value creation over the medium to long term.

Growth Drivers of the real estate Industry in India

Growth Driver	(Details )
Infrastructure Development	Large-scale investments in highways, expressways, metro rail networks, airports, logistics corridors and other infrastructure projects are improving connectivity, reducing travel time and opening new growth corridors. These developments are driving demand for residential, commercial and industrial real estate across both established and emerging markets.
Urbanisation and Demographic Shifts	Rising migration from rural areas to urban centres in search of better employment opportunities, education and quality of life is creating sustained demand for housing, commercial spaces and urban infrastructure. Expanding urban populations remain a key long-term growth driver for the sector.
Rising Household Incomes	Increasing disposable incomes, growth in the middle-income population and improving purchasing power are supporting home ownership aspirations and encouraging investments in residential real estate, particularly in premium and lifestyle-oriented developments.
Growth of Tier-II and Tier-III Cities	Improving infrastructure, industrial development and employment generation are enhancing the attractiveness of Tier-II and Tier-III cities. These markets are witnessing increasing demand for residential, commercial and mixed-use developments, supported by relatively affordable property prices and expanding economic activity.
Government Policy Support	Various government initiatives aimed at housing development, infrastructure expansion, smart city development and urban transformation are supporting long-term sector growth by improving accessibility, investment attractiveness and overall market confidence.
Industrial and Economic Expansion	Growth in manufacturing, logistics, warehousing and service industries is generating demand for commercial, industrial and logistics real estate. Economic expansion continues to support real estate development across multiple asset classes.
Increasing Investor Interest	Growing participation from domestic and institutional investors, supported by improving market transparency and expanding investment opportunities, is contributing to capital inflows and supporting the development of new real estate projects.
Evolving Consumer Preferences	Changing lifestyle aspirations, increasing preference for integrated developments and demand for better amenities are encouraging developers to introduce modern residential and commercial projects that cater to evolving customer expectations.
Regulatory Hurdles	Delayed approvals and complex land acquisition processes increase project timelines and costs. Although RERA has improved transparency, compliance levels continue to vary across states.
Funding and Liquidity Issues	Developers often face funding constraints due to high borrowing costs and delays in fund disbursements. Limited access to institutional finance and liquidity challenges further impact project execution.
Affordable Housing Gap	Demand for affordable housing remains unmet due to rising land prices and construction costs, particularly in urban areas. The urban housing shortage is estimated at around 11 million units.
Economic Cyclicality	The real estate sector is highly sensitive to economic conditions, with fluctuations in growth, interest rates and consumer sentiment affecting demand and investment activity.
Environmental Concerns	Real estate development can contribute to deforestation, urban flooding and environmental degradation, increasing the need for sustainable construction practices.
Urban Planning Deficiencies	Inadequate urban planning often results in unstructured development, traffic congestion and poor integration of supporting infrastructure and public services.

Global Export Market

The global export market remained resilient during 2025 despite elevated geopolitical tensions, trade policy uncertainty and evolving supply chain dynamics. Global goods and services trade expanded by ~4.7%, exceeding global GDP growth of 2.9%, while the value of global merchandise exports increased 7% to ~USD 26.26 trillion. Export activity was supported by resilient demand across emerging markets and developing economies, investments in technology and Al-related products and supportive fiscal and monetary conditions across major economies. Strong demand for office and telecommunications equipment, machinery, chemicals and food products further contributed to export growth, reflecting sustained global trade activity across key sectors.

Asian economies remained the primary drivers of global export growth, contributing nearly 71% of the increase in global merchandise trade volumes. Strong manufacturing output, surging shipments of tech hardware and the rapid expansion of Al-driven supply chains significantly bolstered regional performance. Concurrently, resilient demand across emerging markets provided crucial stability for sustaining broader international trade flows.

The global export environment faced challenges arising from trade fragmentation, tariff-related uncertainties and geopolitical developments. ln particular, tensions in the Middle East created additional risks by disrupting critical energy and shipping routes, including those passing through the Persian Gulf and the Strait of Hormuz, contributing to higher energy, transportation and logistics costs. Despite these headwinds, investments in advanced manufacturing, digital infrastructure and Al- enabled technologies, together with the diversification of global supply chains, supported the overall growth and resilience of export markets during the year.

outlook

The global export market is expected to witness moderated growth, with merchandise trade volumes projected to grow by 1.9% in 2026 and 2.6% in 2027. lnvestments in Al-related technologies, advanced manufacturing and digital infrastructure, along with resilient demand from emerging markets, are expected to support export activity.

Geopolitical tensions, particularly in the Middle East, remain key risks to the economic outlook. These conflicts, alongside elevated energy and logistics costs and

ongoing trade policy uncertainties, create a fragile global trade environment. Nevertheless, supply chain diversification and sustained technological investments are expected to support the resilience of global export markets over the medium term.

Indian Export Market

lndia strengthened its position in global trade during FY2025-26, supported by a diversified export base, expanding manufacturing capabilities and growing integration with international value chains. The country emerged as an increasingly important supplier across sectors such as engineering goods, electronics, pharmaceuticals, chemicals and services, benefiting from shifting global sourcing strategies and rising demand for competitively manufactured products. Total exports of goods and services reached approximately USD 860 billion, while merchandise exports surpassed USD 441 billion, reflecting sustained trade activity despite a volatile global environment.

For FY2025-26, lndia recorded a current account deficit of USD 22.9 billion, or 0.6% of GDP, in FY2024-25. The widening merchandise trade deficit, which increased to USD 83.4 billion during the January-March 2026 quarter from USD 59.3 billion in the corresponding period of the previous year, is weighing on the external balance.

Strong growth in services exports helped mitigate this impact, with net services receipts increasing to USD 60.4 billion during the quarter from USD 3.3 billion a year earlier, driven by robust performance in computer services and other business services. Reflecting resilience of the external sector, lndia recorded a current account surplus of USD 7.1 billion, equivalent to 0.7% of GDP, during the fourth quarter of FY2025-26, supported by strong services exports and healthy remittance inflows.

The export landscape was shaped by growing participation in global supply chains, increasing demand for value-added products and efforts to enhance trade competitiveness. Export activity was further supported by improvements in logistics infrastructure, market diversification initiatives and expanding trade partnerships. However, global geopolitical developments, supply-chain disruptions, tariff-related uncertainties and fluctuating external demand influence international trade flows. Despite these challenges, Indias expanding manufacturing ecosystem, enhanced export capabilities and strategic position within global trade networks continue to reinforce the long-term growth prospects of the countrys export market despite ongoing global challenges.

Global Furniture Industry

The global furniture market demonstrated sustained expansion in 2025. This growth was fuelled by accelerated urbanisation, steady household formation and increased residential construction. Furthermore, shifting consumer preferences towards modern and functional living spaces drove consistent demand for innovative furnishings. Growing disposable incomes, changing lifestyles and increasing expenditure on home improvement and interior aesthetics contributed to sustained demand across residential, commercial and institutional furniture segments. The global furniture market was valued at approximately USD 736.21 billion in 2025, reflecting steady growth across both developed and emerging economies.

Demand was further supported by increasing renovation and remodelling activities, expansion in hospitality and commercial infrastructure and rising adoption of customised and multifunctional furniture solutions. Consumers increasingly favoured furniture that combines functionality, aesthetics and space efficiency, particularly in urban environments. The growing popularity of e-commerce platforms improved product accessibility and expanded market reach, while manufacturers focused on innovative designs and sustainable materials to address changing consumer expectations. The Asia-Pacific region maintained its position as the largest market in 2025. It accounted for more than 36% of global revenue. This performance was driven by robust urbanisation trends, rising regional incomes and continuous growth across both residential and commercial construction sectors.

The global furniture market is expected to maintain a positive growth trajectory, reaching approximately USD 1,212.65 billion by 2035 and registering a CAGR of 5.12% during the forecast period. Growth is expected to be supported by rapid urbanisation, rising housing demand, increasing consumer spending and sustained investments in residential, commercial and hospitality infrastructure. Demand for customised, multifunctional and environmentally responsible furniture solutions is expected to increase, while the expansion of digital retail channels is likely to improve market accessibility and customer reach. Although inflationary pressures, raw material cost fluctuations and supply chain challenges may continue to influence industry dynamics, favourable demographic trends and evolving consumer preferences are expected to support long-term market growth.

Indian Furniture Market

During 2025, the Indian furniture market maintained a trajectory of steady expansion, primarily driven by macro-economic tailwinds. Accelerated urbanisation alongside a visible rise in household disposable income shifted consumer preferences towards organised retail. Concurrently, sustained momentum within the domestic real estate sector acted as a primary catalyst for systemic volume growth. Expanding urban housing developments, increasing home ownership and changing consumer lifestyles continued to drive demand for modern, functional and aesthetically appealing furniture solutions. Residential applications remained the largest end-use segment, accounting for approximately 70.6% of the market, while wood-based furniture dominated with a market share of nearly 59.8%, supported by consumer preference for durability, natural aesthetics and premium appeal.

The market further benefited from increasing adoption of modular and customised furniture, growth in organised retail channels and rising penetration of e-commerce platforms. Improvements in digital retailing, wider product accessibility and changing consumer preferences towards space-efficient and multifunctional furniture supported market expansion during the year. In addition, government-led housing initiatives, expanding commercial infrastructure and growing awareness regarding sustainable and environmentally responsible products strengthened demand across the furniture value chain.

outlook

The Indian furniture market is expected to maintain a favourable growth trajectory, reaching approximately USD 44.30 billion by 2034 and registering a CAGR of 6.38% during 2026-2034. Growth is expected to be driven by rapid urbanisation, expansion of the housing sector, rising disposable incomes and increasing demand for modular, customised and smart furniture solutions. The growth of e-commerce channels, greater adoption of digital technologies and sustained investments in residential and commercial infrastructure are expected to further support market expansion. While raw material price fluctuations, supply chain disruptions and inflationary pressures may pose challenges, favourable demographic trends, rising consumer spending and ongoing real estate development are expected to support long-term growth in the Indian furniture market.

Indian Furniture Market Growth Trend (to be designed)

Global Decorative Laminate Industry

The global decorative laminates industry experienced steady growth in 2025, supported by increasing demand from the residential, commercial and institutional construction sectors. The market reached approximately USD 8.3 billion in 2025, driven by rising urbanisation, growth in renovation and remodelling activities and increasing consumer preference for aesthetically appealing and durable surface solutions. Decorative laminates sustained market traction as a highly cost- effective alternative to conventional natural materials. Market demand was driven primarily by their versatility, low-maintenance requirements and a broad spectrum of design aesthetics. Demand remained particularly strong across furniture, cabinetry, wall panels, flooring and interior decor applications, reflecting the growing emphasis on modern interior spaces and functional design.

The industry further benefited from sustained growth in the global real estate and furniture markets, increasing investments in commercial infrastructure and evolving consumer preferences for premium and customised interiors. Technological advancements in laminate manufacturing enabled the development of innovative products featuring enhanced durability, anti-bacterial properties, scratch resistance and environmentally responsible materials. In addition, growing awareness regarding sustainable construction practices encouraged manufacturers to introduce eco-friendly laminates produced using low-emission and recyclable materials. Asia-Pacific dominated the global market, supported by rapid urbanisation, expanding construction activity and increasing demand for furniture and interior solutions across emerging economies.

outlook

The global decorative laminates industry is expected to maintain a favourable growth trajectory, reaching approximately USD 12.5 billion by 2033 and registering a CAGR of 5.2% during 2026-2033. Growth is expected to be supported by expansion in residential and commercial construction, increasing demand for modular furniture and interior decor products and rising consumer preference for premium surface solutions. Ongoing innovations in design, texture and sustainable laminate technologies are expected to further enhance product adoption across end-use applications. While raw material price volatility, supply chain disruptions and economic uncertainties may pose challenges, growing urbanisation, infrastructure development and rising demand for aesthetically appealing and durable interiors are expected to support long-term industry growth.

Indian Decorative Laminates Industry

The Indian decorative laminates industry sustained steady growth throughout 2025. Rising urbanisation, active construction and a shift towards aesthetic interiors fuelled this expansion. The market was valued at approximately USD 1.98 billion in 2025, driven by growing applications across furniture, cabinetry, wall panels, flooring and interior decor. Decorative laminates gained prominence as a preferred surface solution owing to their durability, versatility, ease of maintenance and cost-effectiveness, making them widely used across residential, commercial and institutional projects.

The industry benefited from increasing investments in real estate development, rising adoption of modular furniture and evolving consumer preferences for premium and customised interiors. Growth in organised retail, hospitality and office infrastructure further supported demand for decorative surface materials. In addition, advancements in manufacturing technologies and growing awareness regarding sustainable and environmentally responsible products encouraged the adoption of innovative laminate solutions offering enhanced durability, design flexibility and improved environmental performance.

outlook

This sector is positioned for long-term growth across both domestic and export markets. Ongoing investments in real estate and modular furniture directly support market expansion. Industry players are focusing on expanding their distribution networks to reach deeper into construction markets. Consequently, the market is projected to reach approximately USD 2.97 billion by 2034, growing at a CAGR of 4.62% during 2026-2034. Growth is expected to be supported by increasing urbanisation, rising disposable incomes, expansion of residential and commercial infrastructure and increasing demand for modular furniture and modern interior decor solutions. Growing consumer preference for premium, customised and sustainable surface materials, coupled with ongoing product innovation and technological advancements, is expected to further support market expansion. While fluctuations in raw material prices and broader economic uncertainties may pose challenges, favourable demographic trends, sustained construction activity and increasing investments in interior infrastructure are expected to support the long-term growth of the industry.

Global Acrylic Solid Surface Industry

The global acrylic solid surface industry maintained steady growth throughout 2025. Rising consumer and corporate preferences for premium, durable and hygienic materials drive market expansion. These surfacing materials saw widespread adoption across commercial, residential, healthcare and institutional applications. This sustained demand reflects an overarching market shift towards resilient, high-quality interior solutions.

The market was valued at approximately USD 4.2 billion in 2025, reflecting growing adoption of acrylic solid surfaces in countertops, wall cladding, sinks, basins, furniture and custom interior fixtures. Positioned between traditional laminates and natural stone, acrylic solid surfaces gained prominence owing to their seamless appearance, repairability, design flexibility and ease of maintenance, making them an increasingly preferred material for modern interior environments.

Demand growth was supported by commercial interior refurbishment activities, healthcare infrastructure expansion and rising investments in premium residential renovations. The healthcare segment emerged as a key demand driver due to the materials non-porous characteristics, ease of disinfection and suitability for infection-control environments. Increasing renovation and retrofit activities across commercial buildings, hospitality facilities and healthcare institutions further strengthened market demand, while advancements in fabrication technologies improved product performance and design versatility. Regionally, Asia-Pacific accounted for over 40% of global demand in 2025, supported by rapid urbanisation, expanding healthcare infrastructure and sustained commercial construction activity across key economies.

The global acrylic solid surface industry is expected to maintain a favourable growth trajectory, reaching approximately USD 7.1 billion by 2035 and growing at a CAGR of 5.4% during 2026-2035. Growth is expected to be driven by increasing investments in healthcare infrastructure, commercial refurbishment projects and premium residential renovations, alongside increasing demand for hygienic, durable and low-maintenance surface solutions. Rising adoption across healthcare, education and institutional facilities, coupled with growing demand for customised interior applications, is expected to support market expansion. While competitive pressures from quartz and premium laminates, resin price volatility and skilled fabrication constraints may pose challenges, increasing renovation activity, urban development and specification-driven demand are expected to support the long-term growth of the industry.

Indian Acrylic Solid Surface Industry

The Indian acrylic solid surface industry witnessed steady growth in 2025, supported by expanding residential and commercial construction activities, increasing demand for premium interior solutions and rising investments in healthcare and hospitality infrastructure. Acrylic solid surfaces gained wider acceptance across countertops, wall cladding, sinks, basins, furniture and custom interior applications owing to their seamless appearance, durability, hygiene advantages and design flexibility. Growing urbanisation, rising disposable incomes and evolving consumer preferences towards modern and aesthetically appealing interiors further supported market demand.

The industry experienced broad-based growth driven by increased renovation and refurbishment activities across the residential, commercial, hospitality and healthcare sectors. Demand accelerated significantly in institutional and healthcare applications, where hygienic, non-porous and low-maintenance surface materials are increasingly prioritised. Market expansion was further bolstered by the rising trend of modular interiors, customised furniture solutions and premium residential developments. In addition, advancements in fabrication technologies and expanding architect and designer preference for seamless engineered surfaces enhanced the adoption of acrylic solid surface materials across diverse applications.

^Joutlook

The Indian acrylic solid surface industry is expected to maintain a favourable growth trajectory over the coming years, supported by rapid urbanisation, rising investments in residential and commercial real estate and increasing demand for premium interior materials. Growth is expected to be driven by expanding healthcare infrastructure, hospitality developments and commercial refurbishment projects, along with rising

adoption of customised and design-oriented interior solutions. Heightened awareness regarding hygiene, durability and low-maintenance surface materials is expected to further support product adoption across institutional and residential applications. The ongoing shift towards premium, easy-to-clean materials reflects broader consumer preferences for long-term value and facility sanitation, which will continue to drive market demand. While competition from alternative surface materials, raw material price volatility and skilled fabrication constraints may pose challenges, sustained infrastructure development, growing renovation activity and rising consumer preference for premium interior solutions are expected to support the long-term growth of the industry.

Company Overview

Established in 1991, Stylam Industries Limited is a leading manufacturer of decorative laminates and premium surface solutions with a strong presence across domestic and international markets. Over the years, The Company has strengthened its position as a primary strategic partner for architects, designers, contractors and end-users by providing high-performance surfacing solutions across residential, commercial and institutional sectors. This leadership position in the global surface materials industry is driven by a strong commitment to quality, product innovation and customer-centric business practices.

The Company offers a diversified portfolio of value- added products catering to a wide spectrum of interior and exterior applications. Its offerings include decorative laminates, compact laminates, acrylic solid surfaces, exterior cladding solutions, restroom cubicles, lockers and other specialised surface materials. Through continuous product development and design innovation, Stylam has strengthened its ability to address evolving consumer preferences and emerging architectural trends across global markets.

The Company leverages state-of-the-art manufacturing facilities and rigorous quality control protocols to consistently deliver premium products. These offerings successfully integrate functional performance with lasting durability and modern design. Its focus on operational excellence, process innovation and manufacturing efficiency enables it to maintain high product standards while responding effectively to changing market requirements. Investments in technology, automation and manufacturing capabilities further support productivity enhancement and product differentiation.

The Company continues to strengthen its competitive position through innovation-led growth, sustainable manufacturing practices and a customer-focused business approach. Backed by a diversified product portfolio, strong export orientation and prudent financial management, Stylam remains well-positioned to capitalise on emerging opportunities in the global building materials and surface solutions industry while creating long-term value for its stakeholders.

During the year, the Company expanded its product portfolio with the introduction of larger-format 5x12 ft laminates, strengthening its ability to address evolving customer requirements, access new market opportunities and enhance its presence across domestic and international markets. ^

During the year, the Company expanded its product portfolio with the introduction of larger-format 5x12 ft laminates, strengthening its ability to address evolving customer requirements, access new market opportunities and enhance its presence across domestic and international markets.

Opportunities

Stylam strengthened its presence across international and domestic markets through a diversified customer base and an extensive distribution network. Export markets

remain a key growth driver, supported by increasing penetration across developed and emerging economies. In India, Stylam expanded its reach through a strong dealer and distributor ecosystem while enhancing brand visibility in the organised building materials segment. The commissioning of the new laminate manufacturing facility is expected to strengthen the Companys ability to serve growing demand, improve product availability and support expansion across strategic markets.

The Company offers a comprehensive portfolio of decorative laminates, compact laminates, acrylic solid surfaces, exterior cladding solutions, restroom cubicles and other specialised surface products. The Company focused on innovation-led product development, introducing differentiated offerings designed to address evolving architectural and interior design requirements. Its diversified product range enables it to cater to a wide spectrum of applications while strengthening customer retention and market positioning across multiple end-use segments.

[Excellence * * *

Investments in advanced technology, automation and process optimisation have strengthened manufacturing capabilities and operational efficiency. The ongoing expansion of manufacturing infrastructure is expected to enhance production flexibility and improve the ability to cater to growing demand across domestic and international markets. Bolstered by quality-focused processes and operational excellence, these initiatives are expected to drive scalability, product consistency and long-term competitiveness.

Stylam maintains a strong financial position supported by prudent capital allocation, healthy cash generation and a debt-free balance sheet. The Companys financial discipline provides the flexibility to pursue strategic growth initiatives, undertake capacity expansion and invest in product innovation while maintaining operational resilience across market cycles.

The Company strengthened its innovation-led growth strategy through investments in advanced manufacturing technologies and differentiated product offerings. During the year, Stylam enhanced its capabilities through the introduction of larger-format laminates, including the new 5x12 ft laminate range, aimed at addressing evolving customer requirements and expanding its addressable market. Focus on product development, design innovation and process excellence is expected to support long-term growth and competitive differentiation.

FavourablelndustryTrend

Growing urbanisation, increasing investments in residential and commercial infrastructure, rising demand for premium interior solutions and expanding renovation activities support demand for decorative surfacing materials. Increasing consumer preference for aesthetically appealing, durable and sustainable products, coupled with growth in organised retail and furniture markets, provides significant opportunities for the Company to expand its market presence and product adoption.

A strong focus on quality, innovation and customer satisfaction has enabled the Company to build a reputable brand in the surface solutions industry. Supported by enduring stakeholder relationships and internationally recognised certifications, the brand enjoys strong credibility in both domestic and global markets.

Threats

The Companys significant export exposure makes it susceptible to geopolitical developments, trade policy changes, tariff actions and disruptions in international shipping and logistics networks. Ongoing geopolitical tensions, evolving trade regulations and protectionist measures in certain markets may impact demand patterns, increase compliance requirements and affect supply chain efficiency. Prolonged uncertainty in global trade conditions may influence export competitiveness and customer purchasing decisions.

Stylam remains exposed to fluctuations in the prices of key raw materials such as kraft paper, resins, chemicals and other petrochemical-based inputs. The Company faces risks regarding its profitability when it cannot fully pass on cost increases to customers. This pricing pressure is especially acute in highly competitive export markets, where maintaining market share often requires absorbing higher input costs rather than raising selling prices. Additionally, supply chain disruptions, freight cost volatility and currency fluctuations could further influence input costs and operating margins.

The decorative laminates and surface solutions industry remains highly competitive, with domestic and international players expanding their product offerings and market presence. Increasing competition may result in pricing pressures, higher customer acquisition costs and the need for continuous investment in innovation, branding and distribution capabilities to maintain market share.

Given the Companys significant international business exposure, volatility in foreign exchange rates may impact export realisations, import costs and overall profitability. Sustained currency fluctuations across key markets could influence competitiveness and financial performance despite risk management measures adopted by the Company.

Financial Performance

Performance of the Year	FY26	FY25
Net Revenue	1,129	1,025
Material Consumption	604	557
Contribution	525	468
Contribution Margin (%)	47	46
Employee Expenses	96	84
Other Expenses	209	199
EBITDA	220	185
EBITDA Margin (%)	20	18
Other Income	7	7
Finance Costs	3	4
Depreciation and Amortisation	21	24
Less: Exceptional Items	-	-
PBT	203	165
PBT Margin (%)	18	16
Tax Expense	53	43
PAT	150	122
PAT Margin (%)	13	12
Share Capital	8.47	8.47
Other Equity	798	649
Shareholders Fund	807	658
Deferred Tax Liabilities	2	1

 

Provisions	9	7
Short Term Borrowings	29	36
Total Debt	29	36
Trade Payables	82	46
Other Financial Liabilities	4	2
Other Current Liabilities	30	20
Other Non-Current Liabilities	11	7
Total Liabilities	979	779
Fixed Assets	200	175
Capital Work in Progress	221	83
Intangible Assets	0	2
Financial Assets	29	52
Inventory	218	185
Trade Receivables	208	204
Cash & Bank	67	50
Other Financial Assets	21	17
Other Current Assets	12	11
Total Assets	979	779
Return Ratios	FY26	FY25
Current Ratio	3.47	4.35
Debt-Equity Ratio	0.21	0.18
Debt Service Coverage Ratio	5.84	4.02
Return on Equity Ratio	0.05	0.05
Inventory Turnover Ratio	2.99	3.37
Trade Receivables Turnover Ratio	5.48	5.62
Trade Payables Turnover Ratio	9.40	13.54
Net Capital Turnover Ratio	3.01	2.86
Net Profit Ratio	0.13	0.12
Return on Capital Employed	0.21	0.22
Return on Investment	0.49	6.59
Debtors Days	67	73
Inventory Days	132	121
Interest Coverage Ratio	59.86	43.09

Risk Mitigation

Risk	Description	Mitigation Strategy
• International Market Risk	A significant share of revenue is derived from exports, making business performance susceptible to changes in global economic conditions, geopolitical developments, trade policies and demand fluctuations across key international markets.	Geographic diversification across multiple export destinations, a broad customer base and expansion into new markets help reduce dependence on any single region and enhance business resilience.
Execution Risk	Delays or challenges in implementing strategic initiatives, capacity expansion plans and operational improvements may impact growth objectives and expected returns on investment.	A clearly defined growth roadmap, phased implementation approach and monitoring of expansion projects support timely execution and efficient utilisation of resources.
Technological Risk	Rapid advancements in manufacturing technologies and evolving customer requirements may reduce competitiveness if innovation and process improvements are not adopted effectively.	Investments in product development, advanced manufacturing technologies, automation and process optimisation help strengthen operational efficiency and maintain product differentiation.
• Market Preference Shifts	Changing consumer preferences, evolving design trends and increasing demand for new materials may affect the relevance of existing product offerings.	A diversified product portfolio, design innovations and development of value-added surface solutions enable effective response to changing market requirements.
Currency Risk	Fluctuations in foreign exchange rates may impact export realisations, import costs and overall profitability.	Active monitoring of currency exposure, prudent treasury management practices and natural hedging through diversified international operations help mitigate foreign exchange risks.
• Raw Material Cost Risk	Volatility in the prices of key raw materials such as kraft paper, resins, chemicals and other petrochemical-based inputs may impact operating margins and profitability.	Strategic sourcing practices, supplier diversification, inventory planning and operational efficiency initiatives help manage input cost fluctuations and minimise their impact on business performance.

Stylam Industries sustains its operational excellence and long-term growth through a robust organisational culture, seasoned leadership and a dedicated workforce. Together, these strengths enable the company to effectively navigate market cycles and continuously scale its global footprint. The Company fosters a work environment that emphasises quality, innovation, accountability and collaboration, enabling employees to contribute effectively across manufacturing, product development, sales and customer engagement functions. As the business expands its manufacturing capabilities and strengthen its presence across domestic and international markets, sustained investments in advanced technologies, automation and process enhancement are complemented by a focus on building organisational capabilities aligned with evolving business requirements. Supported by a culture of continuous improvement and performance excellence, human resources remain integral to maintaining product quality, operational efficiency and the Companys ability to create long-term value for stakeholders.

Environment

Environmental responsibility remains an integral part of Stylam Industries operational philosophy. The Company prioritises resource conservation,

responsible manufacturing practices and reducing its environmental footprint through initiatives aimed at improving energy efficiency and resource utilisation. Key sustainability measures include the operation of Zero Liquid Discharge (ZLD) systems, rainwater harvesting infrastructure and water recycling mechanisms across manufacturing facilities. The transition towards cleaner fuel sources and the electrification of material-handling equipment further supports the Companys efforts to promote environmentally responsible operations. In addition, responsible waste management practices and compliance-driven environmental processes remain central to the Companys sustainability approach. Through continuous improvement in manufacturing practices and responsible resource management, Stylam remains committed to supporting long-term sustainable growth.

Internal Control Systems

The Company has established internal control systems that are commensurate with the size, nature and complexity of its operations. These controls cover key areas such as finance, operations, compliance and risk management and are periodically reviewed by internal and external auditors to assess their effectiveness. The framework is designed to ensure the accuracy of financial reporting, compliance with applicable laws and regulations, safeguarding of assets and timely identification of business risks. Through continuous monitoring and review, the internal control systems support efficient operations and informed decisionmaking across the organisation.

Performance at a glance of last 10 years

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.