28-Oct-2026 09:12:22
SUPREME PETROCHEM Q2 CONCALL : REVENUE SURGES 78% YOY, SALES VOLUMES JUMP 24%; MANAGEMENT TARGETS MAJOR ABS, COMPOUNDING & INSULATION CAPACITY EXPANSIONS
• MANAGEMENT EXPECTS FY27 SALES VOLUMES TO POTENTIALLY EXCEED FY26 LEVELS, SUBJECT TO NORMALISATION OF RAW MATERIAL SUPPLY, EXPORTS & FREIGHT CONDITIONS • MANAGEMENT TARGETS COMMISSIONING OF ABS PHASE 2 IN Q3 FY29, WITH BROADER ABS & COMPOUNDING CAPACITY EXPECTED TO REACH HIGHER UTILISATION DURING FY30 • MANAGEMENT PLANS TO EXPAND COMPOUNDING CAPACITY FROM 50,000 MT TO 80,000 MT ANNUALLY BY Q3 FY28, TARGETING AUTOMOTIVE, BATTERY & APPLIANCE APPLICATIONS • MANAGEMENT TARGETS COMMERCIAL PRODUCTION FROM ITS NEW 1,50,000 CUBIC METER XPS INSULATION BOARD LINE IN Q1 FY28, WITH CAPACITY ABSORPTION EXPECTED OVER 24–30 MONTHS • MANAGEMENT EXPECTS INDIAN POLYSTYRENE DEMAND TO REACH APPROXIMATELY 3,75,000 MT BY FY28, SUPPORTED BY APPLIANCES, AIR CONDITIONING & DOMESTIC MANUFACTURING • Q2 OPERATING REVENUE SURGED APPROXIMATELY 78% YOY TO ₹1,957 CR, SUPPORTED BY HIGHER SALES VOLUMES & RAW MATERIAL-LED PRODUCT PRICE INCREASES • Q2 EBITDA STOOD AT ₹160 CR, WITH EBITDA MARGIN AT 8.12%, WHILE NET PROFIT REACHED APPROXIMATELY ₹95 CR • Q2 SALES VOLUMES JUMPED 24% YOY & 35% QOQ TO 95,242 MT, REFLECTING STRONG DOMESTIC DEMAND RECOVERY • H1 FY27 REVENUE STOOD AT ₹3,649 CR, EBITDA AT ₹508 CR & NET PROFIT AT ₹331 CR, WHILE SALES VOLUMES DECLINED 3% YOY TO 1,66,085 MT • MANAGEMENT INDICATED HEALTHY DEMAND FROM OEM & NON-OEM CUSTOMERS, WITH BOTH SEGMENTS CONTRIBUTING APPROXIMATELY 50% EACH TO SALES • COMPANY HOLDS APPROXIMATELY 60% DOMESTIC POLYSTYRENE MARKET SHARE, WHILE SPECIALTY POLYSTYRENE CONTRIBUTES AROUND 40% OF PRODUCT MIX • EXISTING ABS OPERATIONS ARE RUNNING AT APPROXIMATELY 85% UTILISATION OF TEMPORARILY RESTRICTED CAPACITY, WHICH REPRESENTS 65% OF RATED CAPACITY DUE TO EQUIPMENT ISSUES • STYRENE MONOMER PRICES SURGED FROM APPROXIMATELY $900–1,000/MT TO $1,600–1,650/MT AMID WEST ASIA SUPPLY DISRUPTIONS, INCREASING PRICING & SPREAD VOLATILITY • COMPANY REMAINS DEBT-FREE WITH INVESTABLE SURPLUS OF ₹886 CR, WHILE CAPACITY EXPANSIONS ARE BEING FUNDED THROUGH INTERNAL CASH ACCRUALS • MANAGEMENT REMAINS POSITIVE ON DOMESTIC DEMAND & CAPACITY EXPANSION, BUT STYRENE PRICE VOLATILITY, EXPORT DISRUPTIONS, HIGH FREIGHT COSTS, IMPORT COMPETITION & ABS COMMISSIONING DELAYS REMAIN KEY RISKS
SUPREME PETROCHEM LIMITED