STYRENIX Q4 FY26 earnings call.

Guidance to track

• Additional ABS volumes and capacities will come online in Q3-Q4 FY27 (second half of fiscal year), in line with previously announced timelines. No cost escalation anticipated for the upcoming capex.
• Thailand operations will start generating returns once capacity utilization reaches 60-70%, requiring approximately 14,000-16,000 tonnes per quarter. Currently running below this threshold.
• Management reiterated commitment to at least doubling ABS and SAN production capacity in India within the next 2-3 years, aligned with the company's vision of becoming a preferred global supplier.
• Management suggested that even if Middle East supply disruptions normalize, petrochemical prices (including ABS) may settle 15-20% higher than pre-conflict levels due to structural cost changes and geopolitical realignment.

Risks flagged

• Customers in the unorganized market have become cautious about purchasing at current elevated ABS/PS prices. If price pass-through becomes difficult for end-users in auto, appliances, and packaging, volume demand could soften further in FY27.
• Q4 margins benefited from opportunistic pricing in tight market conditions and favorable product mix (reduced low-margin GPPS). Management explicitly stated this pricing advantage may not be sustainable long-term and cautioned against extrapolating current run-rates.
• The company deliberately reduced GPPS sales volume due to import dumping from competitors. This structural weakness in the PS segment may continue, with management indicating PS expansion will be a 'backended' strategy rather than front-ended like ABS.
• Thailand volumes declined significantly (compared to Q4 FY25 which had unusual high bookings during brand transition). Management advised looking at annual figures rather than quarterly, but the path back to break-even utilization remains unclear given seasonal patterns and market conditions.

Key quotes

• There is no real significant arbitrage between one region to the other when it comes to these monomers and even for a lot of our suppliers... one of the big competitors whose position in Korea... was actually vertically integrated into styrene and they stopped producing styrene in fact... and they chose to now import or buy styrene from outside even into that country because again these are these monomers are commodities and there is no real value of being vertically integrated into these commodities.
• We do believe the market is still going to continue to add you know 30 40 50,000 tons of additional demand every year. So I believe still the import substitution will remain and that opportunity will still remain for the next 5 to 7 years.
• Going forward we do believe that Thailand will prove to be a very critical and important asset for the organization in terms of its positioning with these customers and also supplying to these customers in all these different regions. So talent is a very important and critical step in that direction which we believe in 2 to 3 years we'll have a very clear picture of what we have been trying to achieve so far.