SUPREMEIND Q3 FY26 earnings call.
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Revenue
₹2,687 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹980 Cr
latest reported figure
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Supreme Industries reported 10% volume growth (522,018 MT) but -11% EBITDA (₹980 crore) and -32% PAT decline (₹520 crore) for 9M FY26 due to severe polymer price erosion. Q3 segment volumes grew: plastic piping +16%, packaging +2%, industrial flat, consumer +8%. Management confirmed polymer price erosion has been arrested with PVC prices rising from $580 to $640 CIF India. The nine-month inventory loss was estimated at ₹100-120 crore. Revised FY26 EBITDA margin guidance to 13.5%-14% (down from 14.5%-15%), implying Q4 margins of 15-16%. Full-year volume growth guidance maintained at 12-14% overall and 15-17% for plastic piping. Wavin integration complete with 180+ new customers; 1 million ton capacity expected by FY26-end. Key risks: polymer price volatility (management admits they cannot forecast), persistent weakness in industrial components for appliances, and working capital intensity (inventory ₹1,900 crore). Debt-free target by March 31, 2026.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained full-year plastic piping volume growth guidance of 15-17%, implying ~20-27% volume growth needed in Q4 given 16% achieved in Q3.
- Revised downward from earlier 14.5-15% guidance due to ₹100-120 crore inventory losses in 9M. Q4 margins expected at 15-16% to achieve full-year target.
- Company will be completely debt-free by end of current fiscal year. Net debt currently at ₹132 crore as of December 31, 2025, expected to be paid down with internal accruals.
- Commercial production of uPVC windows to begin February 2026 with projected revenue potential exceeding ₹300 crore at full capacity (250,000 windows annually).
Risks flagged
- Management explicitly stated they cannot forecast polymer prices due to geopolitical uncertainties, wars, and crude oil volatility ($40-$75 range possible). Current price increase from $580 to $640 CIF India may reverse if crude falls.
- Industrial components supplying to washing machine, refrigerator, and AC manufacturers continue to face turbulence and degrowth. Management expects improvement but no specific timeline.
- Inventory of ₹1,900 crore ties up significant cash. Other income collapsed from ₹15.5 crore (Q2) to ₹3.8 crore (Q3) as surplus funds deployed in working capital rather than liquid schemes.
- UBS analyst pushed management to confirm if 100-150 bps of margin compression was due to inventory losses; management confirmed and stated Q4 will see recovery only if prices remain stable. Any reversal would compress margins again.
Key quotes
- We believe in first nine months, company might have taken a hit of between INR 100 crore-INR 120 crore in nine-month operation, which resulted in our giving lower guidance of operating margin.
- The only thing we revised is only the margin part. Now, top line will definitely go down when the polymer price falls down between 12%-20%. Polymer price or top line is bound to go down now.
- Please believe that there is no price erosion now. The users were investing money, and this is changing time now. For the quarter, yes, because of the higher volume, our manufacturing cost, our fixed cost gets spread on the larger volume.
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