Analyst Concall
Supreme Ind eyeing 12-14% volume growth in FY27, mgmt says
This story was originally published at 19:06 IST on 27 April 2026
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--Supreme Ind: New capacity to be added in FY27, largely in pipes segment
--CONTEXT: Supreme Ind mgmt's comments in post-earnings analyst concall
--Supreme Ind: Demand for agriculture pipes back to normal after Q4
--Supreme Ind: Not aware of any player facing raw material shortage
--Supreme Ind: Raw materials required by company available in India
--Supreme Ind: Have some orders from gas companies, more in pipeline
--Supreme Ind: Working to increase export business currently
By Shakshi Jain and Ashutosh Pati
NEW DELHI/MUMBAI – Supreme Industries Ltd. anticipates an overall volume growth of 12-14% in 2026-27 (Apr-Mar) and a 15-17% growth in its piping business, a top company executive Monday said at a post-earnings conference call with analysts. In terms of the operating margin, the company aims to reach 14.0-14.5% during the year.
The company sold 231,889 tonnes of plastic goods in the March quarter, up 16% on year. During the full year, it sold 753,907 tonnes, marking a 12% year-on-year rise. Its earnings before interest, tax, depreciation, and amortisation margin expanded by 390 basis points on year to 17.67% for the March quarter and by 13 bps on year to 13.85% for FY26.
The company sold 191,873 tonnes of plastic piping products in the March quarter, up from 162,227 tonnes in the corresponding quarter a year ago. For the full year, the number stood at 607,487 tonnes, up from 531,133 tonnes in FY25.
"The financial year 2025-26 was a challenging yet eventful year for the company, marked by volatility in raw material prices, prolonged unseasonal rainfall, subdued infrastructure spending, and heightened global geopolitical uncertainties," M.P. Taparia, managing director, Supreme Industries, said in a release. Volatility in polyvinyl chloride resin prices, including frequent and sharp price movements during the year, significantly impacted the company's channel dynamics, while the extended southwest monsoon affected demand, particularly in the agriculture segment, Taparia added.
The company has proposed a capital expenditure of over INR 10 billion for FY27, which includes carry-forward commitments from the previous year, it said in a release. The planned capital expenditure is expected to increase the company's annual installed capacity by 110,000 tonnes in FY27, taking the total installed production capacity to about 1.35 million tonnes, the company said.
Of this proposed capacity addition, about 100,000 tonnes will be in the piping segment, the company executive said. "This 100,000 will be mostly in material handling system."
On demand for agriculture pipes amid volatile polyvinyl chloride resin and pipe prices, the company said prices have corrected since the sharp rise in March. "In the month of March, the price went up so steeply, the farmer refused to buy...Now, the price has come down. So, now the demand is normal."
Overall, the company does not estimate a challenge tied to raw material supply and availability. When asked about the challenges for micro, small, and medium enterprise players on this front, the company executive said Supreme Industries was not aware of any such challenge as it was a large player in the sector.
On other businesses, the management said it has received orders from three to four gas companies and more orders are under negotiation. Supreme Industries supplies pipes as well as fittings for piped natural gas. Overall, the company is currently channeling more efforts towards increasing exports, the management said.
The company reported net profit of INR 4.34 billion for the quarter, up 47.5% on year and up nearly 183% from the trailing quarter. Its revenue from operations rose 16.5% on year to INR 35.28 billion for the three months. For the full year FY26, the company's consolidated net profit fell nearly 1% from the previous year to INR 9.54 billion and its revenue rose more than 7% on year to INR 112.18 billion.
Monday, shares of the company ended 0.8% higher at INR 3,692.40 on the National Stock Exchange. The company announced its March quarter earnings during market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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