Supreme Petroch.

The company's 70,000 MTPA ABS plant, which started production in September 2025, faced a major operational halt in December 2025. Management described the failure of a proprietary critical production equipment as an 'unfortunate incident' that has never been encountered by their technical collaborators before. While engineering consultants and equipment suppliers are on-site, there is currently no definite timeline for restarting operations, which poses a risk to the projected 7% volume contribution from this segment.

Operating income declined 10% YoY to ₹1,265 crores, primarily driven by a sharp correction in Styrene Monomer (SM) prices. Average published SM prices fell from approximately USD 1,040 in Q3 FY25 to about USD 810 in December 2025. This price drop not only reduced realizations but also led to a shrinking market as processors preferred to destock in a falling price environment.

Despite revenue declines, sales volumes for manufactured products grew by 6.7% YoY to 91,265 MT. Polystyrene plants operated at 80% utilization, while EPS plants reached 87-88% utilization. Management noted that demand began to stabilize in late December as SM prices showed an upward bias, encouraging processors to increase offtake.

Supreme Petrochem maintains a robust expansion plan, estimating a capex of ₹250 to ₹275 crores for FY27, focused on Chennai, Amdoshi, and Panipat infrastructure. The EPS Phase 2 expansion is nearing completion and is expected to be operational by February or March 2026. All capex continues to be funded through internal accruals, preserving the company's debt-free status.

Management addressed concerns regarding imports, clarifying that high import volumes from China are largely reprocessed material for non-prime applications like wall panels. Prime-grade competition remains centered on imports from South Korea, Taiwan, and Thailand. The company is also eyeing the European market, hoping for a demand pickup once the India-EU FTA is signed.