Analyst Concall
Supreme Industries plans INR 11-bln capex in FY26
This story was originally published at 20:40 IST on 24 April 2025
Register to read our real-time news.Informist, Thursday, Apr. 24, 2025
Please click here to read all liners published on this story
--Supreme Ind: FY26 capex to boost capacity, product portfolio
--Supreme Ind: Entire FY26 capex to be funded from internal accruals
--CONTEXT: Supreme Ind mgmt's comments in post-earnings call with analysts
--Supreme Ind: Going to make pdts in future using technology from Wavin
--CONTEXT: Supreme Ind to buy Wavin's piping ops for $30 million
--Supreme Ind: Looking at 14.5-15.5% EBITDA margin in FY26
--Supreme Ind: Wavin to be integrated into Supreme as tech brand on purchase
--Supreme Ind: Low demand for voting machines hit industrial pdt sales
--Supreme Ind: Expect plastic piping industry volumes to grow 7-8% in FY26
By Arya S. Biju
MUMBAI – Supreme Industries Ltd. plans capital expenditure of about INR 11 billion in 2025-26 (Apr-Mar), with the aim of expanding its product portfolio and manufacturing capacity, M.P. Taparia, managing director of the company, said in a post-earnings conference call on Thursday. The capital expenditure is inclusive of the carry-forward commitments from FY25 and acquisition of the building and infrastructure business of Wavin Industries. The company plans to fund the entire capital expenditure through internal accruals, Taparia said.
The capital expenditure plan includes the setting up of a state-of-the-art manufacturing unit in Kanpur, Uttar Pradesh, to manufacture unplasticised polyvinyl chloride profiles, windows, and doors. The company plans to start the first phase of the production in July, it said in a press release. The company also plans to set up a new unit at Gadegaon in Maharashtra to produce polypropylene piping soil, waste, and rainwater drainage systems. It also plans to expand the manufacturing capacity of unplasticised polyvinyl chloride pipes, chlorinated polyvinyl chloride pipes, and injection moulded fitting products at various locations, Taparia said.
On the acquisition of Wavin Industries' piping business in India, Supreme Industries said it will use technologies developed by Wavin to make products in the future. The Wavin brand will be integrated into Supreme as a technology brand, the company's management said. Earlier in March, Supreme Industries said it will acquire the India business of Wavin Industries for $30 million. Upon the acquisition, Supreme Industries will get exclusive access to all existing technologies from the parent company, Wavin B.V., Netherlands, and other new technologies to be developed over seven years for India and the South Asian Association for Regional Cooperation countries. Supreme Industries' piping division capacity is also expected to improve by 73,000 tonnes a year, with this acquisition, it said in an earlier exchange filing.
The company has set a revenue target of around INR 120 billion for FY26, excluding revenue contribution from the Wavin business, the management said. "...as far as Wavin is concerned, ... when we acquire Wavin say in July, we will have only nine months at the most for operating period. So we cannot take their annual revenue...because we will not be having full-year this year," the management said. Its earnings before interest, tax, depreciation, and amortisation margin is expected to it to be in the range of 14.5-15.5% in FY26, the company said.
The company expects the plastic piping industry volumes to grow by 7-8% in FY25. In FY25, the plastic pipe industry in India witnessed a degrowth of about 6% in volume, Taparia said in a press release. On the volume decline seen in the industrial products segment of the company in the last three consecutive quarters, the management said that lower demand for electronic voting machines in the current year has impacted the segment. Due to various elections in the states and the Centre, a large quantity of the volume was supplied for the electric voting machine, which is missing in the current year, Taparia said.
Earlier in the day, Supreme Industries reported a consolidated net profit of INR 2.94 billion for Jan-Mar, down more than 17% on year. However, this was above the analysts' expectation of INR 2.48 billion. The company's consolidated revenue for the quarter grew marginally on year to INR 30.27 billion, and failed to meet analysts' expectation of INR 30.89 billion. On Thursday, shares of the company closed 0.4% lower at INR 3,511.70 on the National Stock Exchange. End
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
