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🏭 Supreme Industries Q1 FY26 Results: Volume Up, Profit Down — What’s Next? 📊

Lesson 173/174 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

🏭 Supreme Industries Q1 FY26 Results: Volume Up, Profit Down — What’s Next? 📊

📌 CMP: ₹4326 | Industry: Plastics & Polymers | Market Cap: ₹55,500+ Cr | Net Cash: ₹856 Cr

🌟 1. Key Highlights – Management Commentary 🎯

✅ Volume growth of 5.73% YoY despite 20 days early monsoon impact on agri-piping
✅ Decline in Revenue (-1.03%) and PAT (-24.9%) due to PVC price drop and inventory losses
✅ Robust Net Cash Position of ₹856 Cr
✅ New Business Acquisition: Entered into agreement to acquire Wavin India (₹310 Cr deal)
✅ Strategic tech tie-up with Wavin B.V. Netherlands for piping systems
✅ Capex of ₹1350 Cr planned, fully from internal accruals

🧾 2. Consolidated Financial Performance – Q1 FY26 vs Q1 FY25 📈

Metric	Q1 FY26	Q1 FY25	YoY Growth
🚚 Sales Volume (MT)	1,83,793	1,73,835	+5.73%
💸 Revenue	₹2,609 Cr	₹2,636 Cr	-1.03%
💰 EBITDA	₹319 Cr	₹388 Cr	-17.7%
🧾 PAT	₹177 Cr	₹236 Cr	-24.9%
📊 EBITDA Margin	12.23%	14.70%	↓
🧮 EPS	₹13.96	₹18.59	↓

📌 Segment-wise Volumes (in MT)

🚰 Plastic Piping: 1,48,768
⚙️ Industrial Products: 14,649
📦 Packaging Products: 16,178
🪑 Consumer Products: 4,198

🏷️ 3. Profitability & Valuation Ratios 📊

Ratio	Value (Q1 FY26)
🧾 Return on Equity (ROE)	~19.5% (TTM est.)
🏭 Return on Capital Employed	~23.7% (TTM est.)
📊 EPS	₹13.96
📈 Price to Earnings (P/E)	~30.9x

🧩 4. Industry-specific Metrics (Plastics & Piping Sector) 🏗️

📉 PVC Price Drop led to temporary inventory losses
🚰 Agri-piping demand hit due to early monsoon
🏠 Housing & Infra outlook improving with rising rural demand
🔧 Expansion in composite LPG cylinders & protective packaging

🔮 5. Near-Term & Long-Term Outlook 📅

📌 Near-Term (Next 1–2 Quarters)

Recovery expected in plastic piping as monsoon stabilizes 🌧️
Benefit from new tech collaboration and upcoming launches (PP Silent Pipe, Profile Windows)

📌 Long-Term (FY26–FY30)

Wavin acquisition + tech license to boost scale & innovation
Expansion into central India (Malanpur) to drive logistics & reach
🌱 Focus on sustainability & value-added products continues to build margin strength

🧠 6. Sales & Profit Forecast 📉➡📈

Based on historical trend & strategic initiatives:

Metric	FY25 Actual	FY26E (Est.)
Sales Growth	3%	8–10%
PAT Growth	-10%	12–15%
EBITDA Margin	9.2%	10.5–11%

✅ 7. Conclusion – Investor Takeaways 💡

👍 Positives:

Strong balance sheet with net cash 💰
Forward-looking acquisitions and exclusive tech license
Pan-India manufacturing & distribution network
Sustainability and innovation-led growth

⚠️ Risks:

Raw material (PVC) price volatility
Agri-dependence in piping segment
Margin pressures in the short term

🔎 Investment View: Hold to Buy (Cautiously Optimistic)
Ideal for long-term investors focused on value-added manufacturing + infra growth.

📜 8. Disclosure

This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions.

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Piyush Patel

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