Summary
The Supreme Industries Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 21, 2026, 4:00 PM IST
Event Participants
Executives 3 M.P. Taparia (Managing Director), P.C. Somani (CFO), R.J. Saboo (VP Corporate Affairs & Company Secretary)
Analysts 13 Arun Baid, Aasim Bharde, Keshav Lahoti, Meet, Priyanka, Rahul Agarwal, Ronak Ostwal, Sanil Jain, Shaleen Kumar, Shravan Shah, Sneha Talreja, Tejas Pradhan, Utkarsh Nopany, Varun Jalsaria, Vipul Kumar Shah, Yogesh Mittal
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Volume (Total) | 522,018 MT | +10% YoY for 9M FY26; driven primarily by Plastic Piping growth of 13% for 9M. |
| Net Product Turnover | ₹7,582 crores | +3% YoY for 9M FY26; growth moderated by 12-20% fall in polymer prices. |
| Consolidated EBITDA | ₹980 crores | -11% YoY for 9M FY26; impacted by ₹100-120 crores inventory loss due to falling polymer prices. |
| Consolidated PAT | ₹520 crores | -22% YoY for 9M FY26; lower operating margins and higher finance costs weighed on earnings. |
| EBITDA Margin | 12.1% | 3Q FY26 margin; management guides for 13.5-14% for full year FY26 as prices stabilize. |
| Value-Added Products | ₹1,118 crores | +16% YoY in Q3 FY26; continuing focus on enriching product mix. |
| Net Debt | ₹132 crores | Current debt due to capex and Wavin acquisition; management targets becoming debt-free by March 31, 2026. |
| Capex Outflow | ₹1,031 crores | 9M FY26 outflow; includes Wavin acquisition, funded entirely via internal accruals. |
Geographic & Segment Commentary
- Plastic Piping: Volume grew 16% and value 10% in Q3; growth driven by agriculture demand and Wavin integration. Management expects 15-17% volume growth for FY26 as destocking ends and PVC prices stabilize.
- Packaging Products: Volume grew 2% while value declined 2% in 3Q; however, protective packaging specifically saw 10% volume growth. Focus remains on customized solutions and specialized fabricated products.
- Industrial Products: Revenue remained flat in volume terms; material handling and composite cylinders showed growth, but the appliance component business faced a slowdown.
- Consumer Products (Furniture): Volume grew 8% and value 5% in Q3; segment continues to see moderate growth in rural and semi-urban markets.
Company-Specific & Strategic Commentary
- Wavin Acquisition: Three acquired units are fully integrated; over 180 customers transitioned to Supreme, with full potential expected from February 2026.
- New Product Launches: Launched PP Silent Pipe system with Poloplast (Austria) and expanding Electrofusion (EF) fittings; Window Profile production trials have commenced with a commercial launch set for February 2026.
- Composite Cylinders: Executed LOI for 2 lakh units for BPCL (₹54 crores revenue) and received a fresh LOI for an additional 2 lakh units for execution in Q4 FY26.
- Capacity Expansion: Total piping capacity to reach 1 million MT per annum by end of FY26; two new greenfield plants planned in Gwalior and Bihar for FY28.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Volume Growth (Total) | 12-14% (FY26) | Driven by strong demand in agriculture and infrastructure segments. |
| Volume Growth (Piping) | 15-17% (FY26) | Anticipating a strong Q4 (peak season) and reversal of polymer price trends. |
| Revenue (Topline) | ₹11,000 - 11,500 cr | Revised downward from ₹12,000 cr due to lower polymer raw material prices. |
| Operating Margin | 13.5% - 14.0% (FY26) | Expecting Q4 margins to improve to 15-16% as inventory losses cease. |
| Total FY26 Capex | ₹1,200 crores | Includes Wavin acquisition and ongoing organic expansions. |
Risks & Constraints
| Risk | Context |
|---|---|
| Polymer Volatility | 9M margins were hit by ₹100-120 cr inventory losses; while prices are firming ($580 to $650/MT), global geopolitical tensions remain a risk. |
| Currency Risk | Rupee depreciation (₹89 to ₹92) impacts landed costs of imported polymers, which local producers use as a pricing benchmark. |
| Industrial Slowdown | The appliance sector (washing machines, refrigerators) is facing “turbulent times,” leading to a de-growth in the industrial component division. |
Q&A Highlights
Price Trends & Margins
- Question: What is the quantum of inventory loss and the outlook for Q4 margins? (Shravan Shah)
- Answer: 9M inventory loss was ₹100-120 crores. Q4 margins should reach 15-16% mathematically to meet the full-year guidance of 13.5-14%, aided by stable prices and higher volumes (M.P. Taparia).
PVC Market Dynamics
- Question: How are PVC prices trending with China removing export rebates? (Meet)
- Answer: Prices have bottomed at $580 and moved to $650; supply-demand is balancing as loss-making plants close or cut capacity (M.P. Taparia).
Segmental Growth
- Question: What is the growth in the high-margin CPVC segment? (Keshav Lahoti)
- Answer: CPVC volumes grew 30% during the first 9 months of FY26 (M.P. Taparia).
Succession Planning
- Question: What are the plans for leadership stability? (Priyanka)
- Answer: Two grandsons are now actively involved in the business and are expected to drive future growth (M.P. Taparia).
Key Takeaway
The Supreme Industries delivered a resilient 10% volume growth in 9M FY26 despite a volatile global environment that necessitated ₹100-120 crores in inventory write-downs. The Piping segment remains the primary growth engine, achieving 16% volume growth in Q3, bolstered by the integration of the Wavin business and a 30% surge in 9M CPVC volumes. While falling polymer prices led to a downward revision of the annual revenue target to ₹11,000-11,500 crores, management remains optimistic about a margin recovery to 15-16% in Q4. Strategic expansions, including reaching a 1 million MT piping capacity and the upcoming launch of the ₹300-crore potential window business, position the company to capitalize on the agricultural and infrastructure upcycle. Supreme expects to exit FY26 with a cash-surplus balance sheet and no net debt.
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