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Informist, Tuesday, Jul. 28, 2026

 

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--CONTEXT: Supreme Industries mgmt's comments in post-earnings analyst call
--Supreme Ind: Underlying demand for polymer-based products intact
--Supreme Ind: Polymer prices stabilised now
--Supreme Ind: Polymer prices volatile in Q1, stabilised now
--Supreme Ind: Overall volume growth seen at 12-13% for FY27
--Supreme Ind: Believe sales growth will be 'very good' in Q2
--Supreme Ind: Maintaining 14.0-14.5?ITDA margin guidance for FY27
--Supreme Ind: See FY27 capex around INR 10 bln
--Supreme Ind: Volume growth for pipes ops 15-17% in FY27

 

By Narayana Krishna and Ruchira Kagita
 

MUMBAI/HYDERABAD – Supreme Industries Ltd. is expecting an overall volume growth of 12–13% in 2026–27 (Apr-Mar), with its core pipe business expected to see a volume growth of 15–17%, its management said in a post-earnings analyst conference call on Tuesday. Supreme Industries, India's largest plastic manufacturing and processing company, is bullish on FY27 growth led by demand across categories.

The company Tuesday reported a consolidated net profit of INR 2.81 billion for the quarter, up nearly 39% on year, but down more than 35% from the previous quarter. Analysts had expected the company to report a bottom line of INR 2.23 billion. The sequential decline in net profit was likely due to a sharp fall in revenue.

 

Revenue rose more than 4% on year to INR 27.18 billion, but fell short of analysts' expectations of INR 29.71 billion. On a sequential basis, revenue had declined 23%.  

The underlying growth of polymer-based products is very strong in the country, Supreme Industries' management said. The demand for agricultural pipes is expected to improve further as the season is picking up, the company said.

Supreme Industries is maintaining its earlier guidance for its earnings before interest, tax, depreciation, and amortisation margin at 14.0–14.5% considering raw material prices and other factors, the management said. For the June quarter, the company reported its EBITDA margin at 14.65%, as against 12.23% a year ago.

 

Volatility in polymer prices impacted the June quarter performance, but prices have stabilised, the company executives said. The company is expecting very good growth in the September quarter, the management said.  

 

Supreme Industries is planning to invest around INR 10 billion as capital expenditure as part of its ongoing capacity expansion plan in FY27. The company is expanding its capacity in plants in Bihar, Mallampur, and Jammu in a phased manner, the management said. The company is adding small quantities as part of its capacity expansion as per demand, instead of creating large capacities at once. In the June quarter alone, the company placed equipment orders worth INR 5 billion, the management said.

The company plans to acquire more land in Puducherry to expand its manufacturing facility. In the Union territory, the company is currently making some products for Whirlpool, and with additional capacity, it plans to make furniture for the export market, the management said. The company aims to export products worth INR 150 billion in the next 6–7 years. The company is on the lookout for export opportunities, especially where India has free trade agreements in place.

On Tuesday, Supreme Industries' shares ended at INR 3,395.40 on the National Stock Exchange, up 1.7% from its previous close.  End

 

Edited by Saji George Titus

 

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