Analyst Concall
Supreme Ind sees plastic pipes capacity at 1 mln tn in FY26
This story was originally published at 19:07 IST on 24 July 2025
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--Supreme Ind: Margin eroded due to inventory loss during the Jun qtr
--CONTEXT: Comments by Supreme Ind mgmt in post-earnings analyst call
--Supreme Ind: Expect to sell more value-added products in next 9 months
--Supreme Ind: Expect plastic pipe segment to outperform industry in FY26
By Simran Rede and Anand JC
MUMBAI/NEW DELHI – Supreme Industries Ltd. expects the capacity of its plastic piping division to reach 1 million tonne by the end of 2025-26 (Apr-Mar), M.P. Taparia, managing director of the company, told analysts in a post-earnings conference call on Thursday. The capacity expansion for plastic piping segment of the company has been progressing smoothly, he said.
Currently, capacity of the segment is 870,000 tonnes. In the June quarter, the plastic piping business was affected due to an early onset of monsoon. The company reported a 3.6% fall in the consolidated sales of plastic pipe in the reporting quarter to INR 17.92 billion. The company expects this segment to outperform industry in 2025-26 (Apr-Mar).
Its plastic piping business reported a 6% on-year volume growth during the June quarter, but a 4% fall in value terms. "We anticipate that our plastic pipe business volume will grow between 15-17% this year," Taparia said. "...the plastic pipe industry will grow 2-3% more than the GDP growth," he said.
The company expects plastic piping industry to grow 9-10%.
The overall turnover of value-added product rose nearly 1% on year to INR 9.33 billion in the June quarter. The company said it will continue to invest and expand the product basket in all its divisions and will remain focused on increasing the range of value-added products, the company management said. The company expects to sell more value-added products in next nine months.
The company's margins for the June quarter eroded due to an inventory loss. However, the packaging division grew significantly and there was no inventory loss in packaging division, the company said. The demand for its cross laminated product and polyvinyl chloride packaging product was strong during the quarter.
The dealers are expected to start restocking the inventory from September quarter, Taparia said in the conference call. The inventory level at the dealers was below normal as of Jun. 30.
The demand for agriculture and housing is expected to remain very robust, the company's management said.
The supply of energy in India is abundant, Taparia said. The 30% of renewable energy is used across the company's segments in terms of power and fuel cost, he said. The company is looking ways to increase the share of renewable energy but with the constraints of discounts and the regulatory approvals, he said. In the previous year, renewables contributed to a 21.5% of the total share of energy. The comapny is targeting more than 30% in FY26. End
Edited by Akul Nishant Akhoury
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