Supreme Petrochem LtdQ1 FY26
Supreme Petrochem Ltd Q1 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹740P/E: 39.1Market Cap: ₹13.1K CrSector: Chemicals & Petrochemicals
Management growth scorecard
Revenue
Category 4
Margin
Category 3
Fundraise
No
Order
N/A
Capex
Yes
1 of 4 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 4- →The company expects an 8% to 10% volume growth in FY27, contingent on global market normalization by June-July 2026.
- →With ABS operational, overall volume growth aligns with market growth; however, Q1 FY27 might see lower growth due to ongoing global uncertainties.
- →The ABS plant currently operates at around 65-70% capacity with expectations to reach 80-90% utilization in FY27.
- →Phase two expansion of ABS is underway, independent of equipment issues, indicating future capacity increase.
- →The EPS Phase-II expansion was successfully commissioned in April 2026, increasing capacity from 85,000 to 115,000 tons per annum.
- →The company plans to continue volume growth in compounding divisions and production, aiming to reach 50,000 tons in SPC and Xmold divisions by FY28.
- →Operating EBITDA is expected to improve if the market situation normalizes post Q1 FY27.
Margin guidance
Category 3- →The company anticipates volume growth of 8-10% for the year if global conditions, including war impacts, normalize by June-July 2026.
- →EBITDA for FY27 is expected to be maintained at least at FY26 levels or potentially improve if market conditions normalize.
- →Operating cash flow may stabilize with a sustainable receivable cycle of 30-35 days following normalization of prices and material supply.
- →Expansion projects like EPS Phase-II and ABS Phase-II are progressing, expected to contribute to volume and earnings growth by FY27-FY28.
- →The company is focused on growing volumes alongside market growth and expects improved spreads and volumes once supply chain issues ease.
- →No specific EPS guidance was given, but improved volumes, better margins, and operational efficiencies hint at potential earnings growth.
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Fundraise plans
No- →Supreme Petrochem Limited remains debt-free as of March 2026.
- →The company has an investable surplus of INR 700 crores.
- →All capital expenditures are funded through internal accruals.
- →There is no mention of any current or planned fundraising through debt or equity.
- →The company is cautious with CAPEX, especially in Haryana, linked to upstream project timelines.
- →Overall, no new external fundraising through debt or equity is indicated in the report.
Order book
- →The transcript does not provide specific numerical details on the current or expected order book or pending orders for Supreme Petrochem Limited.
- →Discussions indicate ongoing demand and operations, with certain capacity utilizations (e.g., ABS plant at 65% of design capacity) and production volumes mentioned, but order backlog specifics are not disclosed.
- →Growth expectations are based on volume increases aligned with market growth (8-10% volume growth guidance mentioned).
- →Demand scenarios vary between OEM and non-OEM segments, with roughly a 50-50 split anticipated for some products.
- →External factors such as geopolitical situations and raw material supply constraints influence operational performance and market supply.
- →No explicit mention of order book size or pending orders in the available text.
Capex plans
Yes- EPS Phase-II expansion at Nagothane commissioned in April 2026, increasing capacity from 85,000 to 115,000 tons per annum.
- ABS mass plant restarted with modified arrangements, currently operating at ~65% capacity; aiming to reach 80-90% utilization in FY27.
- Phase-II ABS expansion planned for FY28; work progressing irrespective of current equipment issues.
- Haryana CAPEX for FY27 is limited to infrastructure and related activities due to delayed IOC styrene monomer plant; major spending on PS and EPS pending clearer commissioning timeline.
- Company-wide CAPEX guidance for FY27 is approximately INR 250 crores, funded entirely through internal accruals.
- Future de-bottlenecking of polystyrene capacity under evaluation; timeline not yet finalized.
Overall, Supreme Petrochem is focusing on capacity expansion in EPS and ABS, cautious Haryana investments, and internal funding for capex.
How does Supreme Petrochem Ltd rank vs peers in Chemicals & Petrochemicals?
Pro feature1Supreme Petrochem Ltd
Rev 4Mar 3
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