STYRENIX - Styrenix Perfor.

📊 NSE: STYRENIX 🏢 Petrochemicals 📅 Last Updated: 12/14/2025 13:45

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew 34% YoY in FY25 to INR 2,982 Cr from INR 2,222 Cr in FY24. This was driven by a 23% YoY increase in sales volumes (10% contributed by the Thailand acquisition and 13% organic growth) and a 10% YoY increase in realizations. Q2 FY26 revenue stood at INR 799 Cr, a decrease of 15.32% compared to INR 943 Cr in Q1 FY26.

Geographic Revenue Split

The company is expanding from a domestic-heavy focus to a regional player. The acquisition of Styrenix Thailand in January 2025 contributed approximately 10% to the FY25 volume growth. In Q1 FY26, the Thai entity significantly boosted consolidated volumes by 40% YoY, while standalone domestic volumes grew by 8%.

Profitability Margins

Consolidated PBILDT margin was 11.79% in FY25, slightly down from 11.90% in FY24 due to the lower margin profile of the acquired Thai entity (standalone margin was 12.60%). Q1 FY26 PBILDT margin was 10.22%. Net margins are susceptible to volatile raw material costs and foreign exchange fluctuations on imports.

EBITDA Margin

EBITDA (PBILDT) margin stood at 11.79% for FY25. In Q2 FY26, margins remained under pressure due to competitive intensity and seasonal demand drops, though the company maintains a healthy margin profile relative to the industry through specialty product focus.

Capital Expenditure

The company invested US$ 22.3 million (approx. INR 185 Cr) for the 100% acquisition of Styrenix Thailand, plus a US$ 1 million technology license fee. Future capex for capacity expansion is planned to be funded via internal accruals and moderate debt, targeting a healthy IRR as cleared by the Board.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE A+; Positive / CARE A1+' in October 2025, upgrading the outlook from 'Stable'. The acquisition was funded by a US$ 22.24 million term loan at the subsidiary level, backed by a corporate guarantee from the parent company.

⚙️ Operational Drivers

Raw Materials

Styrene Monomer (SM) is the primary raw material, representing a significant portion of the cost structure. Other key inputs include Acrylonitrile and Butadiene for ABS production.

Import Sources

100% of Styrene Monomer is imported as there is currently no domestic production capacity in India. Imports are primarily sourced from global markets, exposing the company to international price benchmarks and shipping logistics.

Key Suppliers

While specific vendor names like Saudi Aramco or Shell are not explicitly listed, the company transitioned its supply and technology agreements from INEOS Styrolution following the acquisition of the Thai entity.

Capacity Expansion

Polystyrene (PS) capacity has been successfully debottlenecked from previous levels of 40,000-45,000 tonnes. The company is pursuing further expansion in ABS and SAN to maintain its leadership position and cater to a robust 7-8% incremental industry demand.

Raw Material Costs

Raw material costs are a major driver, with realizations increasing 10% YoY in FY25 to offset input inflation. The company uses a formula-based pricing model for many customers to pass through raw material volatility, though spot market sales remain competitive.

Manufacturing Efficiency

The company focuses on 'operating leverage' by utilizing debottlenecked capacities. Standalone operations maintain higher efficiency and margins (12.60%) compared to the newly acquired Thai operations which are currently undergoing a turnaround.

Logistics & Distribution

The company is setting up a base in Jafza, Dubai, to improve distribution efficiency for long-term sales to the Middle East, Europe, and the US.

📈 Strategic Growth

Expected Growth Rate

7-8%

Growth Strategy

Growth will be achieved through: 1) Capacity expansion in ABS and SAN to capture underserved domestic demand; 2) Turnaround of the Styrenix Thailand entity to boost consolidated volumes; 3) Export expansion via the Dubai subsidiary; and 4) Import substitution in the Indian ABS market.

Products & Services

Acrylonitrile Butadiene Styrene (ABS), Styrene Acrylonitrile (SAN) co-polymers, Polystyrene (PS), and various polymer blends.

Brand Portfolio

Styrenix Performance Materials.

New Products/Services

Focus on customized specialty products and import substitutes in the ABS segment. The company is also exploring specialty OEM business and blends.

Market Expansion

Expansion into the APAC region via the Thailand acquisition and targeting Middle East, Europe, and US markets through the newly incorporated Dubai subsidiary.

Market Share & Ranking

Market leader in ABS and SAN in India; established player in the Polystyrene (PS) market.

Strategic Alliances

Acquisition of 100% shareholding of INEOS Styrolution (Thailand) Co., Limited, including technology and license agreements.

🌍 External Factors

Industry Trends

The Indian ABS market is currently underserved, providing a 7-8% growth runway. The industry is seeing a shift toward 'Mass ABS' technology by some competitors, though Styrenix remains focused on the dominant 'Emulsion ABS' process.

Competitive Landscape

Key competitors are expanding capacity (e.g., one peer adding Mass ABS capacity), which may lead to margin pressure in the short term as new supply is absorbed.

Competitive Moat

Moat is built on market leadership in ABS/SAN, long-standing OEM relationships, and specialized product formulations. Sustainability is supported by high entry barriers due to the capital-intensive nature of the industry and stringent environmental norms.

Macro Economic Sensitivity

Highly sensitive to the growth of end-user industries like automotive, household appliances, and electronics, which drive demand for ABS and SAN.

Consumer Behavior

Increasing demand for high-quality, durable plastics in consumer durables and automotive light-weighting is driving volume growth.

Geopolitical Risks

Trade barriers or supply chain disruptions in the APAC region could impact the Thailand operations or the flow of imported raw materials to India.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to manufacturing standards for polymers and safety regulations due to the susceptibility to accidental fires in chemical processing.

Environmental Compliance

The industry is exposed to stringent environmental compliance and pollution norms. Failure to comply could lead to operational disruptions.

Taxation Policy Impact

The Dubai subsidiary was incorporated partly for tax efficiency in long-term international business structuring.

⚠️ Risk Analysis

Key Uncertainties

Volatility in Styrene Monomer prices (impacts margins by 5-10% if not passed through); successful turnaround of the Thai subsidiary; and the impact of new competitive capacity in the domestic market.

Geographic Concentration Risk

Historically high concentration in India (100% of sales previously), now diversifying with the Thailand acquisition and Dubai export hub.

Third Party Dependencies

High dependency on global Styrene Monomer suppliers due to zero domestic production in India.

Technology Obsolescence Risk

Risk of 'Mass ABS' technology gaining preference over 'Emulsion ABS', though management currently views this risk as minimal for their specific customer segments.