Supreme Industries Ltd. share price target

Supreme Industries Ltd.'s (SIL) Q3FY26 result was in-line with our estimate on net sales front, however fluctuating raw material prices led to inventory loss and weighed on operating margin. The management guided that the plastic piping demand is returning to normalcy after prolonged destocking, supported by good monsoons, improving rural sentiment, and revival in housing, agriculture, and infrastructure activity, particularly in the pre-demand season from January to March. SIL reported net sales of Rs26.8bn, higher by 7.1% YoY, while EBITDA came in at Rs2.3bn, marginally up by 1.6% over Q3FY25. It reported net profit of...

About the stock: Supreme Industries Ltd. (SIL) is the largest domestic Q3FY26 performance: Supreme Industries reported consolidated revenue of 2,687 crore (up 7% YoY/12% QoQ) for Q3FY26, led by 13% YoY volume growth (up 19% QoQ) at 1,83,794 MT (Plastic piping volumes were up 16% YoY at 1,46,986 MT). EBITDA margins came in lower than estimates at 11.7% (lower 63 bps YoY and 74 bps QoQ) due to one time impact of change in Labour Codes. Adjusted EBITDA was sequentially flat at 12.3%. PAT stood at 153.37 crore, down by 18% YoY. Share of revenues from value added products increased to...

Despite lower-than-expected performance, Supreme Industries (SI) saw an improvement in its quarterly result, with an EBITDA growth of ~7% in 3QFY26 (vs. a dip in the last five quarters).

However, blended realization/tonne declined by 6.4% YoY due to continued volatility in input prices, impacting margins. EBITDA margin contracted by 160 bps YoY to 12.2%, primarily due to inventory losses, product mix and elevated operating costs, resulting in a 20.3% YoY decline in net profit. We revise our EPS estimates downward by 18% for FY26E and 10.3% for FY27E, factoring in lower-than-expected EBITDA margins in H1. PVC prices are expected to stabilize, and with improving affordability; volume momentum in piping segment is expected to continue H2FY26....

About the stock: Supreme Industries Ltd. (SIL) is the largest domestic Q2FY26 performance: Supreme Industries reported consolidated revenue of 2,409 crore (up 5.3% YoY, down 8.2% QoQ) for Q2FY26, led by 12% YoY volume growth (down 16% QoQ) at 1,54,431 MT (Plastic piping volumes were up 17% YoY at 1,19,860 MT). EBITDA margins came in lower than estimates at 12.4% (lower 170 bps YoY, almost flat QoQ) at 12.4%. Consequently, EBITDA and net profit declined 7% YoY and 20% YoY at 297 crore and 165 crore. Share of revenues from value added products increased to 45% at 1073 crore (up 18.3% YoY) from...

Supreme Industries (SI) reported Q2FY26 blended plastics volume growth of 11.8% YoY with pipes segment reporting 17.2% YoY volume growth (6-year CAGR of 10%), partly aided by Wavin acquisition.

Topline beat on strong pipe volume (+17% YoY vs 9.0% estimated), but margin miss on aggressive pricing and Wavin consolidation

Supreme Industries (SI) reported muted operating performance (EBITDA down 7% YoY), led by volatile PVC prices, a lower VAP mix, and weak demand (due to extended monsoon).

Supreme Industries Ltd.'s (SIL) Q1FY26 result was below our estimates on key parameters. During the quarter the Plastic Pipe Systems business growth was adversely affected due to unfavorable PVC resin prices scenario and demand from infrastructure spend not picking. The segment was also affected due to 20 days early break off monsoon. This resulted in loss of agriculture piping system business due to fall in prices in the quarter also there were inventory loss affecting profitability in the quarter. SIL reported net sales of Rs26bn, down by 1% YoY, while EBITDA came in at Rs3.1bn, declined by 17.7% over Q1FY25. It...

Supreme Industries (SI) reported a muted quarter amid the ongoing challenges of volatile pricing and the early onset of monsoon, affecting demand.

Supreme Industries' (SI) Q1FY26 volume growth was 5.7% below our estimates, due to lower volume in the plastic pipe segment (up 6.1% YoY against our est. of 7.3%) due to early monsoon, leading to lower demand in the agriculture piping segments, delay in ADD on PVC resin resulted de-stocking in the channels. EBITDA margin contracted by 250bps YoY with decrease in EBIT/kg to Rs 10.6 (down 35.9% YoY) in pipe segment mainly due to inventory loss of Rs 500mn. Adjusting for the inventory loss PAT was in line with our estimates in Q1FY26. The management has revised its FY26 guidance, raising P&F volume...

Sharp EBITDA miss as early monsoon dampens agri pipe demand and MTM inventory loss

The combination of reduced government infrastructure spending, a slowdown in the real estate sector, and persistent price fluctuations in PVC led to destocking, adversely impacting overall volumes and profitability. EBITDA margins contracted by 256 bps YoY to 13.8%, largely attributable to an...

Supreme Industries’ Q4 revenue remained muted at Rs30bn, up just 0.6% y/y, as overall volumes sold rose a meagre 2.3% y/y. Profitability was impacted as PVC pricing environment remained uncertain, with a downward bias deferring filling of channel inventory and under absorption of fixed overheads.

Supreme Industries' (SI) Q4FY25 volume growth was 2.3% below with our estimates, due to lower volume in the plastic pipe segment (up 2.2% YoY against our est. of 5%) because of low demand in plumbing and infra segments, delay in ADD on PVC resin resulted de-stocking in the channels. EBITDA margin contracted by 260bps YoY with decrease in EBIT/kg to Rs 13.3 (down 27.8% YoY) in pipe segment mainly due to inventory losses in pipe segment. SI expects topline to reach Rs 12bn by FY26 driven by volume growth of 10-12% in pipe segment with overall EBITDA margin of 14.5-15.5%, also plastic pipe segment...

Supreme Industries (SI) reported Q4FY25 blended plastics volume growth of 2.3% YoY (6-year CAGR of 9.8%) with pipes segment reporting modest 2.2% YoY volume growth (6-year CAGR of 11.7%) on a high base YoY. Blended EBIT/kg contracted 23.1% YoY to INR16.5 (+19.2% QoQ) as pipes EBIT/kg fell 27.8% YoY to INR 13.3 (+22.3% QoQ), partly due to inventory losses.

Consolidated revenue stood at Rs. 3,027 crore, flat y-o-y, due to a 2% y-o-y fall in realisations, while total volumes grew at just 2.3% y-o-y in Q4FY25.

Missed EBITDA estimate by 3% on weak pipe volume (+2.2% YoY vs +30% guidance), but beats PAT estimate by 3.5% on lower tax rate

Wavin acquisition will enable SI to gain market share in North and South India