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Informist, Tuesday, Apr. 21, 2026

By Shreya Shetty

MUMBAI - Supreme Industries Ltd. is expected to post a robust performance in the March quarter, as a sharp rise in polyvinyl chloride prices is likely to drive inventory gains, according to analysts. Higher PVC prices also prompted aggressive channel restocking during the quarter, which is likely to support the company's volume growth.

The plastic pipes manufacturer's consolidated net profit is expected to rise 39% on year to INR 4.09 billion in the March quarter, according to the average of estimates from nine brokerages. The highest estimate for the company's bottom line is INR 6.90 billion by Elara Securities (India) Ltd., while the lowest is INR 3.28 billion by JM Financial Institutional Securities Pvt. Ltd.

The company's consolidated revenue is seen rising 22% on year to INR 37.01 billion during the reporting quarter. The highest estimate for the company's net sales is INR 39.30 billion by Motilal Oswal Financial Services Ltd., and the lowest is INR 35.05 billion by JM Financial.

From the previous quarter, the company's net profit is expected to jump more than 142%, while revenue is seen rising nearly 38%. Supreme Industries reported consolidated net profit of INR 1.69 billion in the December quarter on revenues of INR 26.87 billion. In the year-ago quarter, the company reported consolidated net profit of INR 2.94 billion on revenues of INR 30.27 billion.

Global PVC prices have risen 85% on year to $1,050 per tonne during the March quarter in line with higher crude oil prices and supply constraints due to the war in West Asia, according to Motilal Oswal.

With the surge in PVC prices, companies with low-cost inventory are expected to see higher inventory gains this quarter, thereby reporting strong margin growth, according to analysts. The rise in raw material prices also led to increased restocking across the distribution chain. "Our channel check indicates many retailers are doing panic buying in March as pipe companies are increasing prices with a lag of 4–5 days," Motilal Oswal said in a report. This, along with improved demand, is expected to support the plastic pipe manufacturer's volume growth, according to the brokerage.

Concerns over disruption in the Strait of Hormuz have led to global supply tightness and higher freight costs. This has tightened availability, keeping overall industry volumes under pressure, though it is benefiting large, organised players such as Supreme Industries. The resulting edge over unorganised players is expected to increase the pipe manufacturer's market share, according to analysts.

"Larger organised firms would excel with superior procurement networks, longer inventory cycles, and pre-buying edge at lower prices vs smaller regional manufacturers," according to Elara Securities.

The company's earnings before interest, tax, depreciation and amortisation for the reporting quarter are seen at INR 6.31 billion, up more than 51% on year, according to estimates of seven brokerages. Estimates for the company's EBITDA range from INR 8.90 billion by Elara Securities to INR 5.03 billion by JM Financial.

"The plastic pipes sector is likely to see margin expansion led by MTM (mark-to-market) inventory gain and improved operating leverage," Anand Rathi Share and Stock Brokers Ltd. said in a report.

Though the recently announced temporary import duty cut on PVC resins is expected to limit further increases in PVC prices, it is also likely to improve affordability for PVC pipe makers in the near term, according to Motilal Oswal.

On Apr. 1, the Centre granted full customs duty exemption on critical petrochemical products until Jun. 30, amid the ongoing war in West Asia. The exemption applies to a range of products to ensure the continued availability of critical petrochemical inputs and is a temporary, targeted relief measure.

Meanwhile, China's removal of value-added tax export rebates on PVC is structurally positive, as it may curb dumping, stabilise prices, and further support growth for organised players, according to Prabhudas Lilladher Pvt Ltd. As of Apr. 1, China has eliminated export rebates on PVC products, including resin powder.

At the management interaction, brokerages will monitor the company's views on demand recovery in the agricultural sector and the increasing adoption of composite cylinders.

At 1526 ST, shares of Supreme Industries were down 1.3% at INR 3,663.10 on the National Stock Exchange. The company's shares have risen by over 9% since it announced the December quarter earnings on Jan. 21. Supreme Industries will detail its March quarter earnings on Apr. 27.

Of the 12 brokerage reports on the company available with Informist, 10 have a 'buy' or equivalent recommendation on the stock with an average target price of INR 4,206, nearly 15% higher than the current market price. One brokerage has a 'hold' recommendation, and another has a 'sell' recommendation for the stock, with target prices of INR 3,529 and INR 3,580, respectively.

Supreme Industries is India's largest plastic processor, headquartered in Mumbai. The company produces plastic piping systems, moulded furniture, packaging films, and industrial components.

The following are the Jan-Mar earnings estimates for Supreme Industries from nine brokerages in descending order by the estimate of net profit in INR billion:

End

US$1 = INR 93.49

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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