Supreme Inds. Q2 FY27 Results (NSE: SUPREMEIND)

26 Oct 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The trajectory has inflected positively after the FY26 margin trough: consolidated operating margin expanded 71bps YoY to 13.67% and PAT grew 59.31% to ₹262.44 crore, led by 38% value-added product growth and about 24% Q2 piping volume growth; however, H1 piping volume growth was only about 2% and management now expects about 10% full-year volume growth, indicating recovery rather than a fully established volume upcycle.

P&L walk

Consolidated income grew 39.87% to ₹3369.96 crore, operating profit increased 47.50% to ₹460.61 crore and margin expanded to 13.67% from 12.96%, while PAT rose 59.31% to ₹262.44 crore; the filing attributes momentum to value-added products, piping growth and reduced polymer-price volatility.

Key positives

• Consolidated operating margin rose 71bps YoY to 13.67% and operating profit grew 47.50% to ₹460.61 crore, marking a recovery from the 12% OPM range in the recent FY26 quarters.
• Value-added product turnover increased 38% YoY to ₹1476 crore, supporting mix improvement and the margin recovery.
• Plastic goods sold volume rose 19.44% YoY to 184455 MT, while Q2 Plastic Piping Division volume grew about 24%.
• Net cash surplus increased to ₹685 crore from ₹648 crore at 31 March 2026, providing internal funding capacity for expansion.

Key concerns

• H1 Plastic Piping Division volume growth was only about 2%, and management's full-year volume expectation is about 10%, below the prior context's 12% to 13% overall growth claim.
• Consumer products continue to struggle for growth amid high base-polymer price volatility, limiting the breadth of the recovery.
• Consolidated EPS growth of 42.76% lagged PAT growth of 59.31%; the filing does not explain the divergence.

View original filing

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