1:5 Stock Split: Second Stock Split Announced by Small-Cap Company Held by Sunil Singhania’s Abakkus Growth Fund; Check Details

Stylam Industries, a laminates manufacturer with exports contributing 73.6 per cent of FY2025-26 turnover, is expanding production capacity while seeking to strengthen its domestic distribution presence. The company reported consolidated net profit of Rs 42.35 crore for the quarter ended September 30, 2026, up 13.4 per cent YoY, and commenced commercial production at its new laminate plant in Manak Tabra, Panchkula, Haryana.

Revenue from operations rose 16.5 per cent YoY to Rs 340.52 crore in the September quarter, while total income increased to Rs 344.79 crore from Rs 293.32 crore a year earlier. Profit before Tax grew 9.1 per cent to Rs 55.46 crore. Earnings per share increased to Rs 24.93 from Rs 22.17 in the corresponding quarter last year.

The quarterly cost profile remained elevated. Total expenses increased to Rs 289.33 crore from Rs 242.50 crore, led by higher material consumption and other expenses. Material costs rose to Rs 191.45 crore, while other expenses climbed to Rs 77.37 crore. Finance costs, however, declined to Rs 0.87 crore from Rs 1.87 crore.

On a QoQ basis, revenue increased from Rs 326.47 crore in the June 2026 quarter, although net profit declined from Rs 48.16 crore and profit before tax fell from Rs 65.06 crore. For the first half ended September 30, consolidated revenue rose to Rs 666.99 crore from Rs 575.38 crore, while net profit increased to Rs 90.51 crore from Rs 65.61 crore.

The new Haryana facility began commercial production on September 22 as part of Stylam’s manufacturing expansion. The start is significant because the company has been investing heavily in new capacity. During the first half, it spent Rs 90.51 crore on fixed assets, while net cash from operating activities stood at Rs 26.57 crore.

Separately, the board approved a proposal to split each fully paid-up equity share with a face value of Rs 5 into five shares of Rs 1 each. The proposal remains subject to shareholder and regulatory approvals, with the record date to be set subsequently. The company said the move is intended to improve liquidity and encourage small-investor participation. The Quarterly Results received an unmodified audit opinion.

At 1:12 pm on October 28, 2026, Stylam Industries shares were trading at Rs 2,913.50, down 9.11 per cent from the previous close. The stock was about 21.9 per cent below its 52-week high of Rs 3,730.20, though it remained well above its 52-week low of Rs 1,895.45. The company’s market capitalisation stood at about Rs 5,432.53 crore at the time of the market-data update.

What This Means for Investors

Commercial production from September 22 gives Stylam an additional platform to serve export and domestic demand, although the September quarter captures only a brief contribution from the new facility. First-half revenue and profit growth support the company’s operating momentum. The key next step is ramping up the plant efficiently after earlier commissioning delays. Management had previously indicated initial utilisation of around 25 per cent to 30 per cent, making sales conversion and margin retention important over the coming quarters.

The update is potentially supportive for the growth outlook, but it also raises the importance of execution and cash conversion. The company generated Rs 26.57 crore of operating cash in the first half while purchasing fixed assets worth Rs 90.51 crore, reflecting the funding demands of expansion. Higher revenue has not translated into sequential profit growth in the September quarter, which places attention on input costs, operating expenses and utilisation. The proposed share split may improve tradability, but it does not alter the company’s underlying earnings or business economics.

Disclaimer: The article is for informational purposes only and not investment advice.