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Informist, Monday, Oct. 26, 2026

 

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--Supreme Ind: Volume growth in Oct so far at 23%
--CONTEXT: Comments by Supreme Ind mgmt in post-earnings analyst call
--Supreme Ind: Customers cautious, keeping inventories at minimum level
--Supreme Ind: Q2 packaging segment margin dn as price hike not taken soon
--Supreme Ind: See pipes volumes growth at 13% for FY27
--Supreme Ind:To take 3-7% price hike in consumer packaged goods Tue onwards
--Supreme Ind: CPVC pipes volume growth at 13.5% in Apr-Sept
--Supreme Ind: Co's market share growing in FY27 so far vs FY26
--Supreme Ind: See FY27 revenue at INR 135 billion-INR 140 billion
--Supreme Ind: See FY27 operating margin at 14-14.5%

 

By Rajesh Gajra and Devanshu Singla

 

MUMBAI/NEW DELHI – Supreme Industries Ltd. expects sales volume growth of 13% in plastic piping products for 2026-27 (Apr-Mar) on the back of a strong 24% on-year volume growth in the September quarter, even though for Apr-Sept the growth was muted at 2%, Chairman and Managing Director M.P. Taparia said Monday at a post-earnings conference call with analysts and investors. The company had earlier guided for a volume growth of around 15% in this segment.

 

In a post-earnings press release, the company said it expected the overall volume growth at about 10% for FY27, "despite big de-growth in first quarter (Apr-Jun)". The company said the expected overall volume growth of about 10% for the full year was on the back of encouraging outlook of plastic piping division and other businesses in the September quarter. Taparia said the signs of volume growth were encouraging in the ongoing quarter. He told analysts the company's volume in October till Sunday was 23% higher than the same period a year ago.

 

When asked about FY27 volume growth guidance for the packaging product and industrial product segments, Taparia said the company does not give guidance on these products. He said for the industrial products segment, sales depend on what the customers want to order. The volume growth in industrial products has been "quite comfortable," he said.

 

But in the packaging products segment, the company recorded "a very small growth" in the September quarter, according to Taparia. The prices of these products had gone up too high and so the demand was not matching the supply, he said. The prices in this segment are still quite high currently, he said. It has surged mainly because of elevated raw material prices in packaging products. The segment's margin contracted as it was not possible for the company to pass on the full rise in raw material prices immediately, according to Taparia. Raw material prices surged due to disruption in supplies from West Asia. "Middle East is a big supplier of polyethylene in the country and many plants in Middle East remain closed. And shipment from Middle East to India or anywhere in the world has become very difficult," Taparia said.

 

To a question on margin miss in the September quarter and whether price increases happened in PVC products, Taparia highlighted the reason behind the lag between cost and selling price. "We are increasing the price up to 10 to 15 days gap to help my distributors' balance sheet," he said. The company will announce Tuesday an increase in prices of 3%, 5%, or 7?pending on the product, he added.

 

On inventory levels in the channel, Taparia said he was not sure of exact numbers, but "we think the customers are remaining very cautious...(and) keeping the inventory to minimum level". The company was making sure orders received were being serviced within 48 hours due to its large capacities across different locations, he said.

 

The managing director has guided revenues for FY27 to be between INR 135 billion and INR 140 billion and the operating margin for the year to be 14-14.5%. The company's market share has grown in the current year as compared to FY26, he said.

 

For the September quarter, Supreme Industries reported consolidated net profit of INR 2.62 billion, up 59% on year from INR 1.65 billion. Revenue from operations rose 40% on year to INR 33.61 billion from INR 23.94 billion.

 

The quarterly earnings were detailed during market hours. Monday, shares of the company ended at INR 3,250 apiece on the National Stock Exchange, down 4% from Friday.  End

 

Edited by Shubhayan Bhattacharya

 

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