Earnings Review
Lower polymer prices weigh on Supreme Ind's Q3 net profit
This story was originally published at 16:38 IST on 21 January 2026
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--Supreme Ind: Oct-Dec consol net profit INR 1.53 bln
--Supreme Ind: Analysts saw Supreme Ind Oct-Dec consol net profit at INR 2.03 bln
--Supreme Ind: Oct-Dec consol revenue INR 26.87 bln
--Supreme Ind: Analysts saw Supreme Ind Oct-Dec consol revenue at INR 26.84 bln
--Supreme Ind: Oct-Dec consol net profit INR 1.53 bln vs INR 1.87 bln yr ago
--Supreme Ind: Oct-Dec consol revenue INR 26.87 bln vs INR 25.10 bln year ago
--Supreme Ind: Oct-Dec consol expenses INR 24.94 bln vs INR 22.95 bln yr ago
--Supreme Ind: Apr-Dec consol net profit INR 5.20 bln vs INR 6.67 bln yr ago
--Supreme Ind: Apr-Dec consol revenue INR 76.90 bln vs INR 74.19 bln year ago
--Supreme Ind: Q3 plastic pipe sales INR 18.23 bln vs INR 16.65 bln yr ago
--Supreme Ind: Q3 industrial pdt sales INR 3.36 bln vs INR 3.32 bln yr ago
--Supreme Ind: Q3 packaging pdt sales INR 3.90 bln vs INR 3.98 bln yr ago
--Supreme Ind: Oct-Dec consumer pdt sales INR 1.12 bln vs INR 1.06 bln yr ago
--Supreme Ind: Sold 183,794 tn plastic goods in Oct-Dec, up 12.9% on year
--Supreme Ind: Q3 consol operating profit INR 3.23 bln vs INR 3.31 bln yr ago
--Supreme Ind: Oct-Dec consol operating profit margin 12.01% vs 13.13% yr ago
--Supreme Ind: Retains overall volume growth guidance of 12-14% in FY26
--Supreme Ind: Expects plastic piping volume to grow 15-17% in FY26
--Supreme Ind: Growth in Plastics Piping ops is now coming back to normalcy
--Supreme Ind: Downward price trend has been arrested in plastics piping ops
--Supreme Ind: Plastic pipe installed capacity to reach 1 mln tn/yr by Mar 31
--Supreme Ind: Incurred capex of INR 10.31 bln in Apr-Dec
--Supreme Ind: Expect total cash outflow of INR 12 bln in FY26 on capex
--Supreme Ind: 3 Wavin ops units to be available for full potential from Feb
By Afra Abubacker
NEW DELHI – Supreme Industries Ltd. Wednesday reported double-digit on-year fall in its consolidated net profit for the December quarter, and missed analysts' estimate by a wide margin. However, the company's consolidated revenue rose on year and broadly met the Street view. Though the company's sales volume grew, especially that of the plastics segment, lower polymer prices eroded margins.
The consolidated net profit of the plastic pipes major declined nearly 18% on year and 7% sequentially to INR 1.53 billion in the December quarter. Analysts had pegged the company's bottom line at INR 2.03 billion.
The company's consolidated revenue from operations rose over 7% on year and over 12% sequentially to INR 26.87 billion in Oct-Dec. Analysts had estimated the company's top line for the quarter at INR 26.84 billion.
The company believes the downward trend in polymer prices has ended and prices may start moving higher. "The polymer producers have gone through quite tough time. It has resulted into closure of several petrochemical plants and/or running at quite low capacity. Combined outcome of these actions has put brake in erosion of the prices," the company said in a press release. Polymer prices have started moving upward from January, it added.
The company's total expenditure for the third quarter rose nearly 9% on year and over 13% on year to INR 24.94 billion. The consolidated operating profit in December quarter fell 3% on year to INR 3.23 billion, and the consolidated operating profit margin in Apr-Dec declined to 12.01% from 13.13% year ago.
Supreme Industries sold 183,794 tonnes of plastic goods during the quarter, up nearly 13% on year. Plastic pipe sales rose to INR 18.23 billion in Oct-Dec from INR 16.65 billion year ago, while sale of industrial products rose to INR 3.36 billion from INR 3.32 billion. However, sales of packaging products slipped to INR 3.90 billion in the third quarter from INR 3.98 billion, and sales of consumer products increased to INR 1.12 billion from INR 1.06 billion.
The company management has retained its overall volume growth guidance of 12-14%, with plastic piping business expected to grow 15-17% in 2025-26 (Apr-Mar). "Plastics Piping business growth is now coming back to normalcy as continuous downward price trend scenario has been arrested," it said. The company expects demand growth to rise in the next quarter amid good monsoon, favourable economic conditions in housing, agriculture and infrastructure sectors.
The capacity expansions in plastic piping and protective packaging segments are nearing completion and shall be available in 2026-27 (Apr-Mar), it said. The total installed capacity of the plastic piping business will reach 1 million tonnes per annum by the end of FY26, and the three units acquired from Wavin Business are expected to be available with full potential from February.
Supreme Industries incurred a capital expenditure of INR 10.31 billion during Apr-Dec and expects total cash flow of around INR 12 billion in FY26, funded from internal accruals. For Apr-Dec, the company reported a consolidated net profit of INR 5.20 billion, down 22% on year. Revenue for the period rose nearly 4% on year to INR 76.90 billion. End
Edited by Ashish Shirke
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