26-Oct-2026 20:15:48
SUPREME INDUSTRIES Q2 CONCALL : TARGETS ₹13,500–14,000 CR FY27 REVENUE, MAINTAINS 14–14.5% MARGIN GUIDANCE & REPORTS 24% YOY PIPING VOLUME GROWTH
• MANAGEMENT MAINTAINS FY27 REVENUE TARGET OF ₹13,500–14,000 CR, WITH OPERATING MARGIN GUIDANCE OF 14–14.5% • MANAGEMENT CUTS FY27 PLASTIC PIPING VOLUME GROWTH GUIDANCE TO 13% FROM EARLIER 15–17%, FOLLOWING WEAK Q1 PERFORMANCE • MANAGEMENT EXPECTS STRONG H2 FY27 PIPING DEMAND, WITH OCTOBER VOLUMES UP 23% YOY DURING THE FIRST 25 DAYS • H2 PLASTIC PIPING OPERATING MARGINS EXPECTED AT 14–14.5% OR SLIGHTLY HIGHER, SUPPORTED BY BETTER VOLUMES & PRICE PASS-THROUGH • H1 FY27 REVENUE UP 22% YOY TO ₹6,079 CR, OPERATING PROFIT UP 34% TO ₹829 CR & NET PROFIT UP 31% TO ₹487 CR • H1 TOTAL PLASTIC GOODS VOLUMES INCREASED ONLY 1.1% YOY, INDICATING THAT REVENUE GROWTH WAS LARGELY SUPPORTED BY HIGHER REALIZATIONS • Q2 PLASTIC PIPING VOLUMES UP 24% YOY, WHILE SEGMENT REVENUE INCREASED 42%, SUPPORTED BY STRONG HOUSING DEMAND • H1 CPVC PIPING VOLUMES UP 13.5% YOY, WITH MANAGEMENT FOCUSING ON HIGHER-VALUE PLUMBING & SPECIALTY PIPING PRODUCTS • Q2 INDUSTRIAL PRODUCTS VOLUMES UP 13% YOY, PACKAGING VOLUMES UP 3%, WHILE CONSUMER PRODUCTS VOLUMES DECLINED 14% • MANAGEMENT EXPECTS SUFFICIENT PIPING MANUFACTURING CAPACITY TO SUPPORT H2 GROWTH, WITH NO MAJOR NEAR-TERM CAPACITY CONSTRAINTS • COMPANY PLANS FY27 CAPEX CASH OUTFLOW OF ₹700–750 CR, INCLUDING NEW BIHAR FACILITY DEVELOPMENT & BROWNFIELD EXPANSIONS • MANAGEMENT CONTINUES EXPANDING OPVC PIPES, UPVC WINDOWS & DOORS, MOHAY BATH FITTINGS, GAS PIPING & SPECIALTY PIPE SYSTEMS • MANAGEMENT EXPECTS FY27 INVENTORY GAINS BUT HAS NOT QUANTIFIED THE BENEFIT; POLYMER PRICE VOLATILITY REMAINS A KEY MARGIN RISK • PACKAGING MARGINS REMAIN UNDER PRESSURE DUE TO HIGHER POLYETHYLENE COSTS & DELAYED CUSTOMER PRICE PASS-THROUGH, WHILE FURNITURE DEMAND REMAINS WEAK • MANAGEMENT DOES NOT EXPECT A MAJOR NEAR-TERM RECOVERY IN GOVERNMENT WATER-SUPPLY PROJECTS; ACHIEVING 13% PIPING VOLUME GROWTH & 14–14.5% OPERATING MARGINS REMAINS THE KEY FY27 EXECUTION CHALLENGE
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