Supreme Petroch.Q1 FY27
Supreme Petroch. Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹696P/E: 26.8Market Cap: ₹13.1K CrSector: Chemicals & Petrochemicals
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
N/A
Order
N/A
Capex
Yes
1 of 3 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 3- →The company expects demand growth primarily driven by exports, especially with appliance manufacturers setting up capacities for exports under the PLI scheme.
- →Domestic demand from OEMs remains stable and growing, while non-OEM demand is recovering after a recent subdued phase.
- →Expansion projects include new lines for EPS boards, compounding (especially ABS compounds), and polystyrene capacity, with all expected to be operational by March 2029.
- →The EPS capacity phase 2 expansion is completed; new wide-width EPS board line of 150,000 m3 and compounding capacity expansion to 80,000 tons are underway.
- →Company aims to fully utilize expanded ABS compounding capacity within 2-3 years due to sufficient market demand.
- →Overall growth is aligned with industry's long-term positive outlook, driven by energy-efficient buildings, cold supply chain, construction, and traditional packaging.
- →Volume guidance is not explicitly provided due to current uncertainties in global supply chain and geopolitical issues.
Margin guidance
Category 3- →Supreme Petrochem is expanding capacities in ABS, polystyrene, XPS boards, and compounding, with new lines expected by 2027-2029, indicating growth plans.
- →The company anticipates demand growth driven by energy-efficient buildings, cold storages, cold supply chain, construction, exports, and traditional packaging businesses.
- →Despite current volume declines due to non-OEM subdued demand and geopolitical supply disruptions, management expects recovery and growth over the next 2-3 years.
- →Operating EBITDA margin improved to 19.53% in Q1 FY27 due to favorable global deltas but margins are expected to normalize as global conditions stabilize.
- →EPS and profits benefited from widened global spreads; sustainability depends on global raw material deltas and supply chain normalization.
- →CAPEX of ~INR 900 crores till 2029 will be funded from internal accruals, indicating financial strength to support growth.
- →Management remains cautious about short-term guidance due to fluid geopolitical and supply dynamics but is optimistic on long-term growth and capacity utilization.
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Fundraise plans
- →There is no mention of any current or future fundraising through debt or equity in the earnings call transcript.
- →All expansion projects, including new production lines and capacity increases (e.g., ABS, polystyrene, XPS, compounding), will be funded entirely through internal accruals.
- →The total estimated investment of around INR 900 crores for ongoing expansions will be financed internally without raising debt or equity.
- →Management reiterated that CAPEX and expansions are supported by internal cash flows, and no external financing plans were stated during the call.
Order book
The transcript provided from pages 1 to 14 of the Supreme Petrochem Limited Q1 FY27 Earnings Conference Call does not mention any details regarding the company's current or expected order book or pending orders. The discussion primarily focuses on:
- Impact of global raw material price fluctuations, especially styrene monomer.
- Demand trends from OEM and non-OEM segments.
- Capacity expansions in EPS, polystyrene, ABS compounding, and XPS boards.
- Export challenges due to geopolitical tensions and shipping constraints.
- Margin sustainability and outlook amid volatile global deltas.
- Capital expenditure plans and expected commissioning timelines up to 2029.
No explicit information about order books or pending orders is disclosed in the available transcript.
Capex plans
Yes- →Supreme Petrochem is undertaking expansion projects including:
- → - Phase 2 expansion of EPS capacity completed.
- → - New wide-width EPS board line of 150,000 cubic meters being set up.
- → - Compounding capacity expansion from 50,000 tons to 80,000 tons per annum, expected by June 2027.
- → - Installation of a new 80,000 tons per annum polystyrene production line at Amdoshi complex, Maharashtra, to be completed by December 2028.
- →Total polystyrene capacity will increase from 300,000 tons to 380,000 tons per annum after expansions.
- →Estimated investment for these projects is INR 450 crores, funded entirely through internal accruals.
- →Further expansions focus on ABS line 2, XPS lines, compounding lines, and a fifth polystyrene line, with all capacity additions expected by March 2029.
- →Overall CAPEX for FY27 is planned around INR 900 crores.
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