SUPREMEINDNSEQ2 FY'26October 27, 2025

Supreme Industries Limited

6,267words
164turns
14analyst exchanges
4executives
Management on call
M. P. Taparia
MANAGING DIRECTOR – SUPREME INDUSTRIES LIMITED
P. C. Somani
CHIEF FINANCIAL OFFICER – SUPREME INDUSTRIES LIMITED
R. J. Saboo
VICE PRESIDENT, CORPORATE
Aasim Bharde
DAM CAPITAL ADVISORS
Key numbers — 40 extracted
338224 MT
give brief on Company’s Product Operating performance and other highlights. 1. The Company sold 338224 MT of Plastic goods and achieved net product turnover of Rs. 4951 Crores during the 1st half year of
Rs. 4951 Crore
r highlights. 1. The Company sold 338224 MT of Plastic goods and achieved net product turnover of Rs. 4951 Crores during the 1st half year of the current year against sales of 311912 MT and net product turnover
311912 MT
product turnover of Rs. 4951 Crores during the 1st half year of the current year against sales of 311912 MT and net product turnover of Rs. 4848 crores in the corresponding half year of previous year achie
Rs. 4848 crore
uring the 1st half year of the current year against sales of 311912 MT and net product turnover of Rs. 4848 crores in the corresponding half year of previous year achieving volume and product value growth of abou
8 %
in the corresponding half year of previous year achieving volume and product value growth of about 8 % and 2 %, respectively. 2. The Consolidated Operating Profit and Profit after Tax for the Half yea
2 %
orresponding half year of previous year achieving volume and product value growth of about 8 % and 2 %, respectively. 2. The Consolidated Operating Profit and Profit after Tax for the Half year of the
Rs. 656 crore
nsolidated Operating Profit and Profit after Tax for the Half year of the current year amounted to Rs. 656 crores and Rs. 367 crores, as compared to Rs. 772 crores and Rs. 480 crores respectively, for the corres
Rs. 367 crore
g Profit and Profit after Tax for the Half year of the current year amounted to Rs. 656 crores and Rs. 367 crores, as compared to Rs. 772 crores and Rs. 480 crores respectively, for the corresponding period of t
Rs. 772 crore
or the Half year of the current year amounted to Rs. 656 crores and Rs. 367 crores, as compared to Rs. 772 crores and Rs. 480 crores respectively, for the corresponding period of the previous year, resulting dec
Rs. 480 crore
the current year amounted to Rs. 656 crores and Rs. 367 crores, as compared to Rs. 772 crores and Rs. 480 crores respectively, for the corresponding period of the previous year, resulting decrease of 15 % and 2
15 %
480 crores respectively, for the corresponding period of the previous year, resulting decrease of 15 % and 24 % respectively. 3. The business scenario of all the Product Segments of the Company for th
24 %
es respectively, for the corresponding period of the previous year, resulting decrease of 15 % and 24 % respectively. 3. The business scenario of all the Product Segments of the Company for the 2nd qua
Guidance — 20 items
M.P. Taparia
opening
“The company believes this downward trend may subside going forward unless crude oil prices go down drastically.”
M.P. Taparia
opening
“The Company thus maintains its volume growth target between 15% to 17% in Plastics Pipe Segment for the current year.”
M.P. Taparia
opening
“Company’s plan to set up a new unit for material handling products at its newly acquired land at Malanpur (M.P.) to expand its footprint in central India shall be taken up in hand in next financial year along with other green field units at Bihar and Jammu for Plastic Piping division and in Western Maharashtra for Protective Packaging division for which requisite land is in possession of the Company.”
M.P. Taparia
opening
“Product with the brand “Serene” and Serene Plus” will be launched all over the Country in this month.”
M.P. Taparia
opening
“Construction work at site for Profile window project is nearing completion.”
M.P. Taparia
qa
“Volume, we will grow between 15% to 17%.”
M.P. Taparia
qa
“We told them because our EBITDA margin for the full year will be between 14.5% to 15%.”
M.P. Taparia
qa
“Plumbing side and agri side, both sides, we expect robust demand in second half.”
Keshav Lahoti
qa
“So when we think the Wavin margin will be in line with company's margin?”
M.P. Taparia
qa
“Wavin will be a regular margin just like us from November.”
Risks & concerns — 8 flagged
This has resulted in pressure on crude oil prices.
— M.P. Taparia
It has acquired Wavin’s Plastic Pipe Business including three manufacturing Units situated at Banmore (Madhya pradesh), Thimapur (Telangana) and Neemrana (Rajasthan) having installed capacities of about 71,000 MT per annum as a going concern on slump sale basis, effective 1st August,2025 The Company has also entered into Master Technology License Agreement with Wavin B.V.
— M.P. Taparia
Generally in our business second half is better because first half, the three months of rainy season, the demand goes down, the margins are under pressure.
— M.P. Taparia
There won't be much pressure on the capex payment now.
— P.C. Somani
What would be the impact of Wavin losses that we would have seen this particular quarter?
— Sneha Talreja
So very difficult to just quantify like that.
— M.P. Taparia
So what we have seen that the Industrial segment volume was down even on a weak base of last year.
— Utkarsh Nopany
And even packaging segment volume also came under pressure in September quarter.
— Utkarsh Nopany
Q&A — 14 exchanges
Q
Sir, a couple of questions. So first, I just wanted to understand, can you provide the Wavin volume in Q2?
M.P. Taparia
In Wavin volume, we sold 3,000 tons. We acquired in August 1st . We got 2 months, August and September.. Okay. And yes. So for full year, we were previously looking at around 30,000-odd tons. So will that number remain same? Number remains same. But now as we have just started properly only from October, we believe this year, the sale may be around 20,000 tons in the 8 months. Okay. So now, sir, considering the overall particularly the piping volume, so for 11-odd percent that we have done in the 1H. So to achieve 15%, 17% for full year, we need to have around 20% kind of a growth in the secon
Q
Good evening, sir, and thank you a lot for the opportunity. I just wanted to understand on the margins front, while we have seen quarter-on-quarter improvement in realizations, and even our gross margins have improved, we've seen a fall in EBITDA margins. What would be the impact of Wavin losses that we would have seen this particular quarter?
P.C. Somani
At the operating level, Wavin does not give any negative margins. They are plus only. And what about inventory loss? Have we seen any inventory loss this particular quarter? Inventory loss for the first half, overall in the company, there is an inventory loss. The raw material price has fallen. That is not only PVC, CPVC, polyethylene, all the prices are dropping. So maybe inventory loss in the first half may be around INR50 crores to INR60 crores. Understood. Any other insight that you would want to give because of which EBITDA margins are lower on a quarter-on-quarter basis, leaving apart th
Q
Sir, I want to understand on Wavin. So as you said, Wavin hasn't been profitable this quarter. So when we think the Wavin margin will be in line with company's margin? And what steps are you taking? Because earlier Wavin was loss-making. So what steps you are taking to possibly ramp up its operation and whether Wavin...
M.P. Taparia
Wavin price list has been changed to our price list. Wavin will be a regular margin just like us from November. Got it. We have cut their various costs, staff costs and their ground costs. We have cutmany of their costs. Volume improvement, ultimately. Got it, sir. Volume improvement, better utilization of the plant. Understood. Got it. As the Wavin sale is ramping up, will it imply -- impact Supreme sale? And secondly, you plan to rebrand Wavin under Supreme, some of its sales. How are you planning going forward? Along with the Wavin asset, we've got 120 sales team member in our company. We'v
Q
Hi. Thanks for the opportunity. Why consolidated margin consolidated net profit is lower than the stand-alone profit? Any particular reason?
P.C. Somani
No. In the stand-alone profit, we have the income from dividend from Supreme Petrochem, which was INR43 crores in this half year. Okay. Whereas consolidated, that goes away and the share of profit comes from the consolidated results. Okay. Okay. Thank you. So, none of the subsidiaries are making losses, right? Yes, none. Okay. Thank you, sir.
Q
Hi, sir. Sir, can you tell us with now 71,000 Wavin, our piping capacity is how much? And by end of this year, it will grow to how much?
P.C. Somani
Our capacity by end of March '26 would be 1 million plus. In piping system, I'm talking. For the company as a whole, it will be 1.2 million plus. Okay. Okay. Got it. Got it. And in terms of this quarter, whatever growth that we have achieved on the volume front in the piping, will you help us in terms of the CPVC and the PVC? Specifically CPVC growth was how much? And with Wavin -- and going forward, is there a broad -- any idea how the CPVC volume growth looks like? CPVC growth in the first half has gone up by 26% in volume. For us? For our company we are talking. We can talk about our compan
Q
Hi, sir. Good afternoon. Sir, just one question. If you could just give a little more clarity on the margin as to what should be the annual number -- annual margin we should be looking at? And what is the number that you think should be deliverable at least in the FY '26?
M.P. Taparia
Annual turnover should be between INR11,000 crores to INR11,500 crores and our operating margin should be between 14.5% to 15%. Got it. Got it. And sir, what is the capex that we are looking at from the second half perspective? We believe overall capex should be around INR1,300 crores. But depending on how we are able to order book the order as we are negotiating. In first half, we paid INR869 crores as capex outflow. And as my colleague has told you, we will be having a reasonable good cash surplus on 1st of April 2026. Yes, sir.. Thank you, sir. That will be all. I'll come back in the queue.
Q
Sir, I joined the call a little late. I just want to understand there has been a big increase in the inventory levels. So can you give the reason why there is an increase in the inventory levels? And going ahead, if we are converting this inventory to our revenue in the coming quarters, will there be an impact on the margins? Because my understanding is we will sell this inventory at a lower level?
M.P. Taparia
No, we will price the inventory realization value. And we believe that the polymer price have come close to bottom only unless the crude price goes down dramatically. The crude price can go down a very low level, but today, prices are hovering between $62 to $65 Brent Oil. If will go to $55, then we may have inventory loss, but we cannot predict about the crude oil price going forward. But this is quite a low price of crude oil, which is prevalent today in our country, in the world actually a very low price. So people don't anticipate otherwise if it goes very low, then exploration will come d
Q
Yes. Good evening, sir. Sir my first question regarding the pipe segment margin. So if we see our pipe segment EBIT margin was down by roughly 250 bps on a Y-o-Y basis. Despite we have seen a pretty good volume growth of 17% in this quarter. Our share of value-added product has also gone up quite sharply say which was earlier 40%, now it has gone up to 45%. And what we understand that last year, we booked an inventory loss of INR40 crores and whereas this year we have not seen any inventory loss in September quarter. So can you please, sir, help us understand what is the reason for the margin
M.P. Taparia
In first half, we lost around INR60 crores in inventory. Sir, we have booked INR50 crores to INR60 crores inventory loss in June quarter only. And so if we are saying that we have booked INR50 crores, INR60 crores inventory in the first half, that means that there was no inventory loss in the September quarter? Second quarter, there was too much rain. So the prices have to drop down. This was a slack season. Second quarter is a slack season period due to pipe demand – pipe demand get affected due to rainy season. The second quarter margin will be always low, but we try to give the off- season
Q
Thank you for the opportunity. Sir I have a couple of questions regarding Wavin. So we see that when we have acquired Wavin, we have also acquired some technology with it. So the first question, which I want to ask is when do we expect these acquired technologies to start benefiting our piping segment?
M.P. Taparia
We have told that we have entered into technology license agreement that they have got several technologies in the portfolio. We have to decide which technology we want to take. Option is given to us, we are studying, we are developing on the market first of that product and then only we will enter into an agreement to acquire any technology. Once we acquire any technology license, we will inform all our partner immediately. As on today, we have still not started negotiation for acquiring any technology. We have got a license from them that we have full authority on exclusive basis to acquire
Q
Yes. So Wavin's turnover for FY '24 was INR1,000 crores. So if I assume the similar turnover in FY '25 and the capacity is around INR71,000 crores -- 71,000 metric tons. So realization per metric ton is around 1.35 lakhs, so which is broadly similar for Supreme Industry as well. But if I see this, the Supreme Industry is currently trading around INR50,000 crores. And if I divide it by the capacity which currently Supreme Industry have, which is 8.70 lakh metric tons. So Supreme Industry is trading around 5.74 lakh per metric tons, whereas the company, the Wavin you bought, it's around 41,000 p
P.C. Somani
Mehul, I think your understanding is wrong of the subject. Wavin turnover, what you're looking for FY '24 was inclusive of their tank business, which they have divested in '24, '25. So piping turnover, what we have acquired was less than INR600 crores. Earlier, Wavin turnover was along with the Vectus turnover. Wavin Vectus is marketing Vectus tanks.
Q
Sir, I just had one question. How is the inventory levels currently with the dealers? Is it normal or still we are waiting for a restocking of inventory?
M.P. Taparia
As per us, it may be lower than normal. And do you believe that with the restocking might happen in the October & in the November month before the ADD comes in or in November, December months? So without ADD also, they have to start buying as when the peak season time. From November to May, the demand remains robust of plastic piping division. So they have to maintain and service their customers.
Q
Sir, in the first quarter, we mentioned that we executed our PE piping order for gas applications. So you want to throw any light with respect to the FY '26, '27 visibility on revenue?
M.P. Taparia
Now we have DVGW approval for our fitting also. So now we are the only company who is able to supply pipe and fitting both from the same company. So we are very optimistic now that going forward, we will be able to meet the requirement of several gas company, pipe and fitting together. The schedule was issued in last week only. So we can talk better when we reach in the month of January, but we expect growing business. Business is not going to be very large, but it's a prestigious business, and this can help us to serve the community better. What can be the market for this piping... Comparing
Q
Are we required to pay any royalty to the Wavin for using their technology?
M.P. Taparia
Whenever we acquire technology, we have to pay them royalty. Sorry, sir? Whenever we acquire a new technology from them, then on all the technology turnover, we have to pay them royalty. But on this 71,000 tons of capacity, we will not be paying any royalty, right? We already paid them INR260 crores. Okay. And sir, since we have very little cash left, what is your capex guidance for next year, sir? Next year, capex will tell you in April.
Q
We thank you very much for a very intelligent questions, and we hope that we have satisfied all the questions raised by our partners. Thank you very much.
P.C. Somani
Thank you, everyone. R, J. Saboo: Thank you, everyone.
Speaking time
M.P. Taparia
59
Shravan Shah
28
Moderator
16
P.C. Somani
14
Vipulkumar Shah
8
Keshav Lahoti
7
Sneha Talreja
6
Utkarsh Nopany
6
Raman KV
4
Karan Bhatelia
4
Opening remarks
Aasim Bharde
Thank you, Bhoomika. So good evening to everyone here on the call for Supreme Industries Q2 and H1 FY '26 Results Conference Call. Firstly, I would like to wish everyone a Happy Diwali. From Supreme, we have with us the senior leadership team, as usual, who will discuss and talk about the quarter. And after this, we can open it for all of your questions. Thank you, and over to you, Mr. Taparia.
M.P. Taparia
Good evening, and thank you, Mr. Aasim. I'm M.P. Taparia, Managing Director of the Supreme Industries Limited. I, along with my colleague, Shri P.C. Somani, CFO; and Shri R.J. Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the unaudited stand-alone and consolidated financial results for the quarter and half year ended 30th September 2025. The Standalone results and the consolidated results are already with you. I will give brief on Company’s Product Operating performance and other highlights. 1. The Company sold 338224 MT of Plastic goods and achieved net product turnover of Rs. 4951 Crores during the 1st half year of the current year against sales of 311912 MT and net product turnover of Rs. 4848 crores in the corresponding half year of previous year achieving volume and product value growth of about 8 % and 2 %, respectively. 2. The Consolidated Operating Profit and Profit after Tax for the Half
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