Supreme Petroch.

Supreme Petrochem delivered a robust Q4 FY26, with revenue from operations growing 3% YoY to INR 1,587 crores. This performance was primarily driven by higher volumes and improved spreads. Operating EBITDA saw a significant 75% YoY increase, reaching INR 253 crores, and operating EBITDA margins expanded to 15.9%. Net profit after tax stood at INR 168 crores, with a PAT margin of 10.59% for the quarter.

For the full fiscal year 2026, revenue from operations was INR 5,338 crores, marking an 11% decline YoY. This reduction was mainly attributed to a 17% lower average styrene monomer (SM) price during the year, despite a nominal 2% volume growth. Full-year operating EBITDA was INR 515 crores with a margin of 10.37%, and PAT was INR 327 crores with a margin of 6.13%.

The company's sales volume for manufactured products increased 5.4% YoY in Q4 FY26 to 100,664 tons, and 2% YoY for the full year to 363,203 metric tons. A significant achievement was the successful commissioning of the EPS Phase-II expansion project on April 14, 2026, which boosted EPS capacity from 85,000 TPA to 115,000 TPA. The mass ABS plant, however, is currently operating at 65% of its design capacity (~45,000 tons from 70,000 tons) due to an equipment snag, though management expects 85-90% utilization this year.

Demand from OEM segments remained healthy, but the non-OEM sector experienced significant softness, particularly in April 2026. This weakness was attributed to high prices, labor unavailability, and gas shortages. The company aims for 8-10% overall volume growth in FY27, contingent on market normalization. For Xmold, volumes are expected to grow 50-60% this year, with utilization targeting 65-70% from 40-45% in FY26.

Styrene monomer prices were largely stable until February 2026 but surged sharply in March 2026, from ~$1,000/ton to a peak of ~$1,650/ton, moderating to ~$1,500/ton. This volatility, driven by the West Asia conflict and Strait of Hormuz disruption, led to increased freight costs. Management stated that for commodity grades, pricing is linked to the landed cost of imported material plus a premium, and incremental pricing is passed on to consumers, though high prices can ultimately kill demand.

Supreme Petrochem maintained its debt-free status, holding an investable surplus of INR 700 crores as of March 2026, with all capital expenditure funded through internal accruals. The company plans a CAPEX of approximately INR 250 crores for FY27, primarily for infrastructure and related activities, with major PS/EPS investments in Haryana pending clarity on IOC's SM plant. The Board recommended a final dividend of INR 8 per equity share, bringing the total dividend for FY26 to INR 10.5 per equity share.