Supreme Industries Limited — Q4 FY26 earnings call

Call held 27 Apr 2026

Management summary

Supreme Industries reported healthy FY26 revenue and volume growth, driven by strong performance in its Plastic Piping System and value-added products. Despite a marginal decline in PAT, operating profit saw a good increase. The company is committing substantial capex for FY27 to expand capacity, particularly in piping. However, challenges persist from raw material price volatility, subdued infrastructure spending, and slow progress in government schemes like Nal Se Jal.

Highlights

  • FY26 Revenue from operations grew 7.4% YoY to ₹11,218 crores, driven by 11.8% volume growth in plastic goods to 753,907 MT.

  • Consolidated Operating Profit increased 6.6% YoY to ₹1,654 crores.

  • Value-added products turnover showed strong growth of 15.2% YoY, reaching ₹4,677 crores.

  • Plastic Piping System business demonstrated robust growth of 14% in volume and 11% in value terms for FY26.

  • The company plans a significant capital expenditure of ₹1,000 crores for FY27 to expand capacity by 1.10 lakh MT, with 100,000 MT dedicated to piping.

Concerns

  • Profit after Tax marginally declined by 0.7% YoY to ₹954 crores in FY26.

  • The Industrial Products Segment experienced a degrowth of 1% in volume and 3% in value terms.

  • The Plastic Piping System industry, at a country level, saw a volume de-growth of 9% in FY26.

  • The Nal Se Jal scheme's progress is slow due to state government participation issues, impacting demand for water supply networks.

  • PVC resin prices experienced significant volatility, with a ₹34/kg drop in April after a ₹32/kg increase in March.

Key financials

  1. Revenue from Operations ₹11,218 Cr +7.4%YoY
  2. Plastic Goods Volume 7,53,907 MT +11.8%YoY
  3. Consolidated Operating Profit ₹1,654 Cr +6.6%YoY
  4. Consolidated PAT ₹954 Cr -0.7%YoY
  5. Value Added Products Turnover ₹4,677 Cr +15.2%YoY

What they filed

Q1 FY27: revenue up 4.2%, net profit up 39.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,273 2,510 3,027 2,609 2,394 +5%2,687 +7%3,528 +17%2,718 +4%
EBITDA319 309 416 319 297 −7%314 +2%623 +50%398 +25%
Net profit207 187 294 202 165 −20%153 −18%434 +48%281 +39%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentVolume GrowthValue Growth
Plastic Piping System14%11%
Industrial Products Segment-1%-3%
Packaging Product Segment5%3%
Consumer Product Segment4%-1%

Capital allocation

high confidence
  • Capex ₹1,000 Cr New plan — Proposed for strengthening manufacturing capabilities, expanding capacity, enhancing product offerings, and advancing sustainability initiatives.
    • Capacity expansion (1.10 lakh MT total, 100,000 MT in piping, 10,000 MT in Material Handling System)
    • Strengthening manufacturing capabilities, enhancing product offerings, advancing sustainability initiatives
    The Company proposes to commit capital expenditure of approximately Rs. 1,000 crore during the year, including carry-forward commitments from the previous year. The proposed and committed capex is principally aimed at strengthening manufacturing capabilities, expanding capacity, enhancing product offerings, and advancing sustainability initiatives. The planned capital expenditure is expected to enhance the Company's annual installed capacity by approximately 1.10 lakh MT, taking the total installed production capacity to about 1.35 million MT per annum.
  • Debt Debt disclosed
    With its strong balance sheet, zero debt, expanding manufacturing base, technology leadership and diversified business model, the Company is confident of delivering improved performance in the coming year and creating long term value for all stakeholders.
  • Liquidity Liquidity disclosed Company has a strong balance sheet.
    With its strong balance sheet, zero debt, expanding manufacturing base, technology leadership and diversified business model, the Company is confident of delivering improved performance in the coming year and creating long term value for all stakeholders.

Guidance & targets

Volume

  • Overall Volume Growth Volume · FY27 · Medium confidence around 12%

    Previously 15% to 17% → around 12%

    Overall, around 12%.

    — M.P. Taparia

  • Piping Business Volume Growth Volume · FY27 · High confidence 15% to 17%
    We anticipate to grow 15% to 17% piping business.

    — M.P. Taparia

  • Overall Volume Target Volume · long way to go · Low confidence 2 million tons

    From 0.6 million tons today

    Not current financial. So our dream is to achieve 2 million tons. Presently only 6 million tons. So a long way to go.

    — M.P. Taparia

Margin

  • Overall Margins Margin · FY27 · High confidence 14% to 14.5%
    Margins between 14% to 14.5%.

    — M.P. Taparia

Revenue

  • Windows Business Annual Revenue Revenue · full capacity utilization · Medium confidence INR 200 crores to INR 250 crores
    Once we achieve full capacity utilization, then it should be about INR200 crores to INR250 crores annual revenue.

    — P. C. Somani

Market Share

  • Export Business (Plastic Pipe Section) Market Share · very shortly · Medium confidence $50 million

    From $5 million today

    Our export business plastic pipe section is only $5 million. We are working first how to reach $50 million very shortly.

    — M.P. Taparia

Industry Growth

  • Plastic Piping System Industry Growth Industry Growth · FY27 · Medium confidence 8%
    Industry level, yes, you can ask raw material producers, but they told us they anticipate 8% growth this year.

    — M.P. Taparia

Profitability

  • Return on Capital Employed Profitability · ongoing · High confidence >25%
    One criteria that we must get return more than 25% on the capital employed. So we are earning more than 25% year-after-year for the last 18 years.

    — M.P. Taparia

What to watch in Q1 FY27

Packaging Facility at JNPT

next quarter
Current Land purchased, document process ongoing
Target Announcement of facility construction

Why it matters

Indicates progress on new capacity and product diversification in the packaging segment.

Packaging side, we have purchased land at JNPT. The document process is going on. Once the land comes in our possession, then we'll announce putting a facility to make packaging product.

Risks & concerns

  • Raw Material Price Volatility

    high

    Volatility in PVC resin prices, including frequent and sharp price movements, significantly impacted channel dynamics.

    Management acknowledged

  • Industry Volume De-growth in Plastic Piping System

    high

    The Plastic Piping System industry experienced a 9% volume de-growth at the country level in FY26.

    Management acknowledged

  • Unseasonal Rainfall and Monsoon Conditions

    medium

    Prolonged unseasonal rainfall and extended monsoon conditions affected demand, particularly in the agriculture segment.

    Management acknowledged

  • Subdued Infrastructure Spending

    medium

    Subdued infrastructure spending was a challenge during the financial year 2025-26.

    Management acknowledged

  • Global Geopolitical Uncertainties

    medium

    Heightened global geopolitical uncertainties contributed to a challenging year.

    Management acknowledged

  • Slow Progress of Nal Se Jal Scheme

    medium

    The 'Har Ghar Jal' initiative is not seeing significant uptake due to state government's lack of participation and fund releases.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Q4 Inventory Gain due to PVC Prices Direct
So for the full year, we don't see any inventory gain for the full year. But especially in the fourth quarter, there may be inventory gain net-to-net, maybe around INR70 crores to INR80 crores.

Clarifies the impact of PVC price movements on inventory gains for the quarter and full year.

Asked by Rahul Agarwal

Capex Plans for Packaging Segment Partial
Packaging side, we have purchased land at JNPT. The document process is going on. Once the land comes in our possession, then we'll announce putting a facility to make packaging product.

Indicates future expansion plans for the packaging segment, tied to land acquisition.

Asked by Rahul Agarwal

PVC Price Volatility and Channel Inventory Direct
But prior to that in the month of March, the price went up by 32%. So that price increase has been corrected in the month of April. Now the inventory also at the distributor level, retail level are mostly cleared. So we do not anticipate now any price reduction also because rupee is getting weaker, rupee is around INR94.50.

Provides insight into recent PVC price movements, channel inventory status, and outlook on price stability.

Asked by Shravan Shah

Industry Volume De-growth for Plastic Piping System in FY26 Direct
We are told by raw material producers that it was minus 9%.

Highlights a significant industry-wide challenge of volume de-growth in the core Plastic Piping System segment for the past fiscal year.

Asked by Sneha

Uptake of Nal Se Jal Scheme Evasive
No. As of now, we don't see any uptick on that. You see this Nal Se Jal depends upon the state and central government cooperation. Jal Jeevan, yes.

Reveals the slow progress and challenges in the government's 'Har Ghar Jal' initiative, which is a potential demand driver.

Asked by Sneha

Middle East Impact on Polymers and PVC Prices Direct
The point is that PVC is not so much affected as huge volume is coming from China. And China production is not based on crude oil. They manufacture based on coal. So coal to PVC, China is a very large producer and it is not affected by any Gulf disruption.

Explains why PVC prices are less impacted by Middle East geopolitical events compared to other polymers, due to Chinese supply dynamics.

Asked by Sonali

Windows Business Revenue and Margins Direct
Once we achieve full capacity utilization, then it should be about INR200 crores to INR250 crores annual revenue. ... Profitably we invested more than INR200 crores in that business. So margins will be maintained, we get return on the investment.

Provides revenue potential and margin expectations for the newly operational Windows & Doors division.

Asked by Girish Choudhary

FY26 Total Addition to Assets and Depreciation Direct
Our total addition to assets is INR1,400 crores this year, including what was added to the block.

Clarifies the significant asset additions in FY26, which contributes to understanding depreciation figures.

Asked by Darshita Shah

2 min read 6 chapters

Detailed narrative

FY26 Financial and Volume Performance

Supreme Industries reported a robust financial year 2026, with revenue from operations growing 7.4% YoY to ₹11,218 crores, up from ₹10,446 crores in the previous year. This growth was underpinned by a significant 11.8% increase in plastic goods volume, reaching 753,907 MT. Consolidated Operating Profit also saw a healthy rise of 6.6% to ₹1,654 crores, though Profit after Tax marginally declined by 0.7% to ₹954 crores.

Segmental Business Performance

The Plastic Piping System business was a key growth driver, expanding by 14% in volume and 11% in value terms during FY26. The Packaging Product Segment also grew by 5% in volume and 3% in value. However, the Industrial Products Segment experienced a slight degrowth of 1% in volume and 3% in value, while the Consumer Product Segment saw 4% volume growth but a 1% value degrowth. The company's focus on value-added products yielded strong results, with turnover increasing 15.2% to ₹4,677 crores.

Capital Expenditure and Capacity Expansion

For the upcoming fiscal year, Supreme Industries plans a substantial capital expenditure of approximately ₹1,000 crores. This investment is aimed at strengthening manufacturing capabilities, expanding capacity, and enhancing product offerings. The planned capex is expected to add 1.10 lakh MT to the annual installed capacity, with 100,000 MT specifically allocated to the piping sector and 10,000 MT to Material Handling Systems. In FY26, the company added ₹1,400 crores to its assets, including the Wavin acquisition.

Market Dynamics and Raw Material Volatility

The company navigated a challenging environment marked by significant volatility in raw material prices, particularly PVC resin. Prices saw a sharp increase of ₹32/kg in March, followed by a correction of ₹34/kg in April. Management noted that channel inventory is mostly cleared and anticipates price stabilization due to a weaker rupee. Despite these fluctuations, the company expects overall margins to be between 14% to 14.5% for FY27, with piping business volume growth projected at 15% to 17%.

Strategic Initiatives and Outlook

Supreme Industries is expanding its product portfolio, with the new Windows & Doors division in Kanpur Dehat commencing production in March 2026, targeting ₹200-250 crores annual revenue at full capacity. The company is also aggressively pursuing export market growth, aiming to increase its plastic pipe section exports from $5 million to $50 million. Management maintains a long-term aspiration to achieve 2 million tons in overall volume, significantly up from the current 0.6 million tons, and is committed to maintaining a Return on Capital Employed above 25%.

Challenges in Government Schemes

A significant concern highlighted was the slow progress of the government's 'Har Ghar Jal' initiative. Management indicated that there has been no significant uptick in demand from this scheme, primarily due to delays in state government participation and fund releases. This impacts the potential for growth in water supply network infrastructure, a key area for the company's piping business.

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