Risk Intelligence
Inventory loss risk from sharp styrene price correction
View Risks →Supreme Petrochem reported a mixed Q4 FY26 with revenue of ₹1,587 crore (+3% YoY) and EBITDA of ₹253 crore (+75% YoY), driven by higher volumes and better spreads amid stable styrene prices until March.
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Supreme Petrochem reported a mixed Q4 FY26 with revenue of ₹1,587 crore (+3% YoY) and EBITDA of ₹253 crore (+75% YoY), driven by higher volumes and better spreads amid stable styrene prices until March. PAT stood at ₹168 crore with EBITDA margins expanding to 15.9%. The quarter benefited from seasonal demand and inventory gains, though management cautioned that the West Asia conflict caused a sharp spike in raw material costs and disrupted supply chains. For FY27, management guided for 8-10% volume growth assuming normalization by Q2, with ABS operating at 65% capacity and EPS Phase 2 commissioned. Key risks include potential inventory losses if styrene prices correct sharply and subdued non-OEM demand due to high prices and labor shortages.
Inventory loss risk from sharp styrene price correction
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Read Transcript →Q4 FY26 sales volume of manufactured products increased to 1,06,664 tons from 95,556 tons in Q4 FY25.
FY26 total sales volume grew to 3,63,233 tons from 3,55,967 tons in FY25.
Capacity utilization for the year remained healthy at over 80%.
ABS plant operating at 65% of design capacity after equipment failure, down from original 70,000 tons capacity.
Management expects 8-10% volume growth in FY27, assuming normalization of global conditions by Q2.
If the West Asia conflict resolves and styrene prices drop sharply, the company may face significant inventory losses.
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