Supreme Petroch. Q2 FY27 Earnings Call — Analysis (NSE: SPLPETRO)
Supreme Petrochem reported a sharp YoY jump in Q2FY27 operating income to ₹1,957 Cr and PAT doubling to ₹95 Cr, driven by higher selling prices and domestic volume rebound amid volatile styrene input costs.
Result quality: stable — Results context unavailable. Management sentiment: neutral.
The take
Q2FY27 Operating Income ₹1,957 Cr ( +77.91% YoY ) . New guidance — Q3FY30 xps insulation board absorption… 150,000 m³ .
Results
Operating revenue rose 78% YoY to ₹1,957 Cr with EBITDA of ₹160 Cr (margin 8.12%) and PAT doubling to ₹95 Cr; sales volume grew 24% YoY to 95,242 MT.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Operating Income | ₹1,957 Cr | +77.91% | yoy · Q2FY27 · vs ₹1,100 Cr in Q2FY26 |
| EBITDA | ₹160 Cr | none · Q2FY27 · EBITDA margin of 8.12% | |
| EBITDA Margin | 8.12% | none · Q2FY27 | |
| Profit After Tax | ₹95 Cr | +96.95% | yoy · Q2FY27 · almost doubled YoY |
| Operating Income | ₹3,649 Cr | none · H1FY27 | |
| EBITDA | ₹508 Cr | none · H1FY27 | |
| Profit After Tax | ₹331 Cr | none · H1FY27 · PAT margin of 9.08% | |
| Sales Volume | 95,242 MT | +24% | yoy · Q2FY27 · +35% QoQ |
| Sales Volume | 1,66,085 MT | -3% | yoy · H1FY27 · impacted by lower exports |
| Investable Surplus Cash | ₹886 Cr | point_in_time · Q2FY27 · Sep-2026; company remains debt-free |
Guidance
Management expects full-year volume growth to outpace last year if macro conditions normalize, with new insulation board capacity commercializing in Q1FY28 and 80k MT compounding capacity online by Q3FY28.
What management committed to
- [The full capacity of the new XPS insulation board line of 150,000 cubic meters] should be able to go to the market and be absorbed in the market in the next 24 months to 30 months [after commercial production in Q1FY28]. — 150,000 m³, Q3FY30
- [Our own second line of ABS] should be ready by third quarter of [FY29].
Key themes
Raw material cost volatility and capacity expansion
Operational commentary
- Compounding capacity expansion from 50,000 MT to 80,000 MT per annum is scheduled for implementation by Q3FY28.
- New wide-width XPS insulation board line with 150,000 cubic metre capacity to start commercial production in Q1FY28.
- ABS operating at 85% of truncated capacity (rated capacity capped at 65% pending repair/replacement of damaged equipment); second line expected by Q3FY29.
- Entered automotive components and EV 2-wheeler segment with ABS compounded materials; internal transfer of PS/ABS for compounding reached 11,700 MT in H1.
- Exports subdued due to elevated ocean freight rates, longer transit times, and feedstock supply uncertainties from the Gulf region.
- Duty-free import window for PS/ABS (notified in April) expired in July, causing import pressure to ease from August onwards.
Analyst Q&A
Q. Demand outlook, styrene monomer price trajectory, and raw material procurement challenges.
Domestic demand remains strong post-quarter due to festival season. Styrene landed prices crossed $1,600/MT, but management expects supply and price conditions may stabilize post-US elections from December.
Q. Product spreads for GPPS and HIPS during Q2 and outlook.
Spreads shrunk due to high liquid bulk freight and feedstock volatility; Q2 realized spreads were $200-$250/MT for GPPS and $300-$350/MT for HIPS.
Q. Status of ABS equipment repair and capacity utilization.
ABS line is operating at 85% of truncated (65% rated) capacity as damaged equipment is yet to be fully replaced.
Q. Expected mix shift across auto, electronics, and durables once 140k MT ABS capacity is online.
Declined to provide a precise numerical mix projection, noting it is early stages in auto/EV 2-wheelers, though appliances and autos will dominate.
Research and educational content only. Not investment advice.