Supreme Petrochem Ltd Q4 FY26 Earnings Analysis

- Volume growth target for FY'27-28 is around 10%, assuming ABS plant commissioning by end of current financial year. - Contribution to growth: 3-4% from base business, approximately 7% from ABS operations if started as planned. - Focus on ABS compounding business anticipated to provide stability and cushion to earnings. - Polystyrene capacities operated at ~80% utilization; demand pickup expected with styrene price stabilization. - Strategic CAPEX of Rs. 250-275 crores planned for FY’26 mainly at Chennai, Amdoshi, and Panipat for infrastructure and growth, including EPS Phase 2 starting operations by February/March. - Expect sequential improvement in performance from Q4 due to stronger OEM demand and stabilized raw material prices. - Export demand expected to improve post India-EU FTA, enhancing revenue diversification.

- The company anticipates a growth of around 10% in FY’27 and FY’28, assuming the ABS plant becomes operational by the end of the current financial year. - Of this 10% growth, approximately 3%-4% is expected from the base business, with the remaining 6%-7% coming from ABS operations. - EPS and profits are expected to benefit from the ramp-up of ABS and compounding businesses, which provide more value-added product offerings. - Operating EBITDA margin in Q3 FY’26 stood at 5.47%, with potential improvement expected as ABS operations normalize and demand stabilizes. - The company maintains a debt-free balance sheet and will fund growth CAPEX (~Rs. 250-275 crores for FY’27) internally, supporting steady growth without financing constraints. - Sequential improvement in performance is expected in Q4 and beyond, driven by stronger OEM demand and stabilized raw material prices.

- Estimated CAPEX for the coming year (FY’27) is around Rs. 250-275 crores. - CAPEX will be mainly at three locations: Chennai, Amdoshi, and infrastructure developments at Panipat. - The EPS Phase 2 expansion is expected to be operational by February-March 2026. - No new CAPEX or new business announcements apart from Phase 2 ABS and Haryana projects as of now. - ABS plant commissioning delayed due to equipment malfunction; once operational, focus will be on ramping up production and compounding. - Capital expenditure is funded entirely through internal accruals; the company remains debt-free. - Any future capital costs related to repairs on ABS plant equipment are covered under warranty, so no incremental CAPEX expected there.

- There is no mention of any current or planned fundraising through debt or equity in the transcript. - The company remains debt-free as of December 31, 2025. - All capital expenditures are being funded entirely through internal accruals. - The company maintains a healthy investible surplus of Rs. 463 crore. - No specific plans for new equity or debt issuance were discussed during the call.

- Supreme Petrochem has not taken any advance order book for the ABS plant as they want customers to use the product first for application testing. - Due to the white color of their ABS material, master batch matching issues caused some delays in sampling and supply. - Orders from major OEMs for ABS compounds have started coming in after successful sample matching. - Transition period is ongoing; increased utilization in compounding lines expected once ABS plant restarts. - No specific timelines disclosed for restarting ABS plant or achieving full utilization. - No segment-wise order book numbers were shared publicly during the call.