The Supreme Industries (SUPREMEIND) Q1 25/26 earnings summary

Executive summary

• Sales volume reached 183,793 tons in Q1 FY26, up 5.73-6% year-over-year, with net product turnover of ₹2,579-2,609 crore, but revenue declined 1% year-over-year.

• Consolidated operating profit and PAT were ₹344 crore and ₹202 crore, down from ₹425 crore and ₹273 crore year-over-year, reflecting a 19-26% decrease.

• EBITDA margin dropped to 12.23% from 14.70% year-over-year, with EBITDA at ₹319-344 crore.

• Value-added product turnover increased to ₹933 crore from ₹925 crore year-over-year.

• Company maintains a net cash surplus of ₹856 crore as of June 30, 2025.

Financial highlights

• EBITDA margin for the quarter was close to 12%, impacted by inventory losses of ₹50-60 crore.

• Guidance for EBITDA margin is 14.5% to 15.5% for the full year.

• Production increased by 14% year-over-year, though sales volume grew 6%.

• PAT at ₹177.36-202.30 crore, down 24.89% year-over-year.

• Gross margin reported in the 26-33% range.

Outlook and guidance

• Upgraded volume growth guidance for plastic piping business to 15-17% for FY26, with overall company volume growth expected at 14-15%.

• Margin improvement expected as inventory losses subside and value-added product share increases.

• Acquisition of Wavin India expected to close by July 31, 2025, with exclusive technology license for 7 years.

• Industry growth expected at 9-10% for FY26, with company targeting to outperform.

• Management highlights strong liquidity and ongoing expansion plans.