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Informist, Tuesday, Jan. 20, 2026

By Afra Abubacker

NEW DELHI – Despite inventory losses, Supreme Industries Ltd. is expected to report a moderate rise in its net profit for the December quarter, supported by higher volumes, a low base, and the acquisition of Wavin India's pipes business, according to analysts. A sharp fall in prices of polyvinyl chloride is likely to result in stock losses during the quarter, and the non-implementation of anti-dumping duty on PVC imports could pose near-term headwinds for the pipes segment.

The plastic pipes major is expected to report a net profit of INR 2.03 billion, up nearly 9% on year and over 23% higher than in from the September quarter, according to the average of estimates from eight brokerages. The highest estimate for the company's bottom line is INR 3.11 billion by Elara Securities (India) Ltd., while the lowest estimate is INR 1.52 billion by Nuvama Wealth Management Ltd., which expects contraction in industrial volumes.

The company's revenue is seen at INR 26.84 billion, up 7% on year and 12% from the previous quarter. The highest estimate for the company's net sales is INR 27.65 billion by Motilal Oswal Financial Services Ltd., supported by capacity expansion and market share gains from unorganised players. Nuvama has the lowest estimate for revenue at INR 26.35 billion.

"Volumes for the packaging or consumer divisions are expected to grow by 5% YoY each, whereas volumes in the industrial division are estimated to contract by 5% YoY," Nuvama said. Consequently, the brokerage expects Supreme Industries' net profit to decline 8% on year to INR 1.52 billion.

"PVC prices fell 12.5% in Q3FY26 post anti-dumping duty not being implemented on PVC resin imports, and thus, could result in inventory losses for all companies in the quarter," ICICI Securities said. The brokerage expects Supreme Industries' revenue to grow 12% on year, with pipe volumes rising 15% on year.

The withdrawal of the Bureau of Indian Standards' quality control order on PVC shipments is expected to lead local end-users to import from China. "For local PVC players, concerns are compounded by indications that anti-dumping duties will not be implemented anytime soon," Independent Commodity Intelligence Services said. Although final anti-dumping duties recommendations were issued on Aug. 14, the expected implementation deadline of mid-November passed without an official notification, it said in a report early December.

The company's earnings before interest, tax, depreciation and amortisation for the reporting quarter are seen at INR 3.36 billion, up nearly 9% on year and 13% sequentially. Estimates for the company's EBITDA range from a high of INR 3.61 billion by IDBI Securities to a low of INR 3.03 billion by Nuvama.

Brokerages expect inventory losses across pipes companies and Prabhudas Lilladher estimates Supreme Industries' stock loss at about INR 250 million for the quarter. Analysts will closely track the management's commentary on PVC price trends and inventory impact.

At 0956 IST, shares of Supreme Industries were down 0.5% at INR 3,447.70 on the National Stock Exchange. The company's shares have fallen nearly 14% since it announced the September quarter earnings on Oct. 27. Supreme Industries will detail its Oct-Dec earnings on Wednesday.

Of the 11 brokerage reports on the company available with Informist, seven have a 'buy' or equivalent recommendation on the stock with an average target price of INR 4,604. This is 33% higher than the current market price. Three brokerages have a 'hold' recommendation, and one has a 'sell' recommendation on the stock at an average target price of INR 4,010 and INR 4,193 respectively.

Following are the Oct-Dec earnings estimates for Supreme Industries from eight brokerages in descending order by the estimate of net profit in INR billion:

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Edited by Nishant Maher

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