Stylam Industries Shares Plunge Nearly 8% After 1:5 Stock Split Announcement, Q2 Profit Rises 13%

Chandigarh: Shares of Stylam Industries Limited plunged nearly 8 percent in Wednesday's intraday trade, even as the company reported higher quarterly earnings and announced a 1:5 stock split.

According to the market data available at 12:36 pm, Stylam Industries shares were trading at Rs 2,942, down Rs 254.30 or 7.93 percent from the previous closing price of Rs 3,205.50.

The stock opened at Rs 3,205.50 and touched an intraday high of Rs 3,233 before witnessing a sharp sell-off. It fell to a day's low of Rs 2,851.50, marking a decline of around 11 percent from the previous close.

The sharp fall came on a day when the company announced its September-quarter financial results and a proposed subdivision of equity shares.

Stock Split

Stylam Industries' board approved the subdivision of one equity share with a face value of Rs 5 into five equity shares with a face value of Rs 1 each.

The proposed 1:5 stock split is subject to shareholder approval through a postal ballot and applicable regulatory approvals.

The company said the move is intended to improve liquidity and encourage greater participation from small investors.

The record date for the stock split will be announced after the necessary approvals are obtained.

Profit Growth

Despite the sharp decline in its share price, Stylam Industries reported a 13.4 percent year-on-year increase in consolidated net profit to Rs 42.35 crore for Q2 FY27, compared with Rs 37.34 crore in the corresponding quarter last year.

Revenue from operations rose 16.5 percent to Rs 340.52 crore from Rs 292.40 crore a year earlier.

Consolidated total income increased to Rs 344.79 crore from Rs 293.32 crore, while total expenses rose to Rs 289.33 crore from Rs 242.50 crore.

Profit before tax increased to Rs 55.46 crore from Rs 50.82 crore.

Quarterly Comparison

On a sequential basis, the company's consolidated net profit declined 12.1 percent from Rs 48.16 crore in the June quarter, even as revenue increased 4.3 percent from Rs 326.47 crore.

The company's basic earnings per share stood at Rs 24.93, compared with Rs 28.37 in the preceding quarter.

Half-Year Performance

For the first half of FY27, consolidated net profit rose 37.9 percent to Rs 90.51 crore from Rs 65.61 crore in the corresponding period last year.

Revenue from operations increased 15.9 percent to Rs 666.99 crore from Rs 575.38 crore.

Capacity Expansion

The company also disclosed that commercial production commenced at its new laminate manufacturing plant at Manak Tabra in Panchkula, Haryana, on September 22, 2026.

The facility is located adjacent to its existing manufacturing plant and forms part of its capacity expansion programme.

The stock's sharp intraday decline contrasted with its year-on-year earnings growth. However, the available information does not establish that the stock split announcement alone caused the sell-off.

Disclaimer: This report is based on company filings and intraday market data and is not intended as investment advice.

Published on: Wednesday, October 28, 2026, 12:47 PM IST