This article first appeared on GuruFocus .
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Revenue from Operations:INR 11,218 crore, up 7% from the previous year.
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Sales Volume:753,907 tonnes of plastic goods, a 12% increase from the previous year.
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Consolidated Operating Profit:INR 1,654 crore, a 7% increase year-on-year.
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Profit After Tax:INR 954 crore, a 1% decline year-on-year.
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Plastic Piping System Business Growth:14% in volume and 11% in value terms.
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Industrial Product Segment Growth:1% in volume and 3% in value terms.
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Packaging Product Segment Growth:5% in volume and 3% in value terms.
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Consumer Product Segment Growth:4% in volume and 1% in value terms.
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Value-Added Products Turnover:INR 4,677 crore, a 15% increase from the previous year.
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Proposed Capital Expenditure:Over INR 1,000 crore for capacity expansion and new projects.
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Installed Production Capacity:Expected to increase by approximately 10,000 metric tons, reaching around 1.35 million tonnes per annum.
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Release Date: April 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Supreme Industries Ltd ( BOM:509930 ) achieved a 12% growth in volume and a 7% increase in revenue, reaching INR11,218 crore for the year.
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The company plans to invest over INR1,000 crore in capital expenditure to enhance manufacturing capabilities and expand capacity.
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The plastic piping system business saw a 14% increase in volume and an 11% rise in value, indicating strong performance in this segment.
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Supreme Industries Ltd ( BOM:509930 ) introduced new SKUs and systems, expanding its product portfolio and opening additional business opportunities.
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The company maintained a strong balance sheet with zero debt, positioning it well for future growth and value creation for stakeholders.
Negative Points
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Profit after tax declined marginally by 1% year-on-year, despite an increase in operating profit.
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The industrial product segment experienced only a 1% growth in volume, indicating slower performance compared to other segments.
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Export performance was moderated due to geopolitical developments and related disruptions.
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Volatility in domestic prices and subdued infrastructure spending posed challenges during the year.
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The company faced demand slowdowns from OEM customers in the industrial segments.
Q & A Highlights
Q: Could you provide details on the inventory gain due to higher PVC pricing in March? A: Mahavir Prasad Taparia, Chairman and Managing Director: There was hardly any inventory gain for the full year. However, in the first quarter, there might be an inventory gain of around INR70 to INR30 crores.
Q: Are there any plans to expand capacity on the packaging side? A: Mahavir Prasad Taparia, Chairman and Managing Director: We have purchased land near JNPT for a packaging facility aimed at the export market. Details on CapEx will be shared once the land is in our possession.
Q: What is the expected growth for CPVC pipes? A: Mahavir Prasad Taparia, Chairman and Managing Director: Last year, we experienced a growth of around 13% in CPVC pipes.
Q: How do you foresee the overall volume and piping volume growth for FY27? A: Mahavir Prasad Taparia, Chairman and Managing Director: We expect a 15% to 17% growth in piping and an overall growth of 12% to 13%.
Q: How is the demand for agricultural pipes affected by price fluctuations? A: Mahavir Prasad Taparia, Chairman and Managing Director: Demand was short in Q4 but has picked up in Q1 due to price corrections. The agricultural segment is now seeing strong demand.
Q: Can you provide insights on the competitive dynamics post-war and the impact on market share? A: Mahavir Prasad Taparia, Chairman and Managing Director: We have not noticed any significant market share changes due to raw material availability challenges.
Q: What are the expectations for the Windows business in terms of revenue and margins? A: PC Somani, Chief Financial Officer: At full capacity, the Windows business is expected to generate INR200 to INR250 crore in annual revenue with better margins due to its customized nature.
Q: How do you view the impact of Middle East dynamics on polymer supply and prices? A: Mahavir Prasad Taparia, Chairman and Managing Director: The impact on polyethylene products is higher than on PVC. However, PVC prices are influenced by increased supply from China, which is not affected by Gulf disruptions.
Q: What is the company's strategy for increasing market share in the CPVC segment? A: Mahavir Prasad Taparia, Chairman and Managing Director: We aim to expand market share by offering more systems, increasing SKUs, and focusing on export markets.
Q: What are the expectations for the Greenfield projects' operational timeline? A: PC Somani, Chief Financial Officer: All four Greenfield projects are expected to be operational by the end of March 2027, with some capabilities available this year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
