Transcript of the earnings conference call held on Thursday, the 24th July, 2025.
SUPREMEIND · price
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Supreme Industries posted Q1 FY26 volume growth of 6% to 1,83,793 tons but value degrowth of 1% to Rs. 2,579 crores, as early monsoon and PVC price drops caused an estimated Rs. 50-60 crore inventory loss. Consolidated operating profit fell 19% YoY to Rs. 344 crores and PAT declined 26% to Rs. 202 crores. Management raised full-year volume growth guidance for plastic piping to 15-17% (from 12-14%) and for the overall company to 14-15%, citing the Wavin acquisition (Rs. 310 crore, closing July 31) and restocking by dealers. Full-year EBITDA margin is guided at 14.5-15.5%, with capacity utilization expected at 65-70%. Total cash outflow of ~Rs. 1,350 crore is planned for capex and acquisitions, fully funded by internal accruals.
The raised volume guidance and Wavin acquisition could drive stronger top-line growth, but the near-term margin recovery to 14.5-15.5% from a weak Q1 (~12%) is the key swing factor for stock sentiment. The Rs. 1,350 crore capex commitment without external borrowing is a positive for balance sheet, though execution and timely anti-dumping duty (expected Oct/Nov 2025) remain critical watchpoints.