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Informist, Saturday, Oct. 24, 2026

 

By Sidhant Shekhar Jha

 

MUMBAI – Supreme Industries Ltd. is expected to report a sharp on-year rise in its net profit for the September quarter, driven by a sudden increase in polyvinyl chloride resin prices. This is likely to boost realisations and bring inventory gains. Channel restocking is also expected to support volumes in its plastic piping business. Operating margins are likely to widen from a year earlier, though remain broadly steady sequentially.

 

The company is expected to report a consolidated net profit of INR 2.89 billion for the September quarter, up over 75% on year, according to the average of estimates from 10 brokerages. The highest estimate for net profit is INR 3.41 billion from 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 2.61 billion from Anand Rathi Share and Stock Brokers Ltd. The company had reported a net profit of INR 1.65 billion in the year-ago quarter.

 

The company's net sales are projected to rise about 30% on year to INR 31.13 billion, as per the average of estimates. Revenue estimates range from a high of INR 33.03 billion from Nuvama to a low of INR 29.11 billion from Prabhudas Lilladher Pvt. Ltd.

 

Higher resin prices are likely to be the key driver of earnings growth. Plastic pipe makers are expected to report inventory gains as PVC prices rise

sharply, supporting margins, HDFC Securities said. PVC prices have risen 23% since the end of the June quarter, making channel restocking imminent, said Nuvama, which expects demand to recover after six quarters of flat-to-negative industry volumes. The pipe segment is likely to perform best, supported by strong double-digit volume growth and mark-to-market inventory gains, Anand Rathi said.

 

Volume growth estimates remain firm. The company's volumes are expected to rise 18% on year, according to HDFC Securities. Motilal Oswal expects pipe volumes to increase about 20% and pipe revenue to grow about 32%. IDBI expects sales to rise about 28%, led by higher volumes.

 

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 4.65 billion, up over 56% on year, as per the average of eight estimates. The highest estimate for EBITDA is INR 5.01 billion from HDFC Securities and the lowest is INR 4.36 billion from Antique Stock Broking Ltd. The company's net profit is expected to grow significantly faster than revenue as higher prices and inventory gains lift operating margins.

 

IDBI expects the EBITDA margin to widen 288 basis points on year, supported by improved net sales realisation. Motilal Oswal expects the margin to remain at the June quarter level, assuming no impact of inventory gains or losses arising from resin price movements.

 

The company is among the top picks of JM Financial, Antique Stock Broking and Anand Rathi, and a preferred pick of 360 ONE. Prabhudas Lilladher has removed the stock from its conviction picks while Nuvama lists it among its top underperformers. The outlook for demand for agricultural pipes, capacity expansion plans, new product launches, and the near-term demand scenario will be key to watch, said IDBI.

 

The company will announce its financial results for the September quarter Monday. Friday, shares of Supreme Industries ended 3% lower at INR 3,390 apiece on the National Stock Exchange. The stock almost unchanged since its June quarter earnings were announced on Jul. 28.

 

Of the 12 research reports on the company available with Informist, nine have a 'buy' call recommendation, two have a 'hold' call, and one has a 'sell' call. The average buy target price is INR 4,185 per share, implying an upside of about 23% on the current market price.

 

The following are the Jul-Sept earnings estimates for Supreme Industries from 10 brokerages in descending order by net profit, in INR billion:

 

Brokerage	Net Sales	Net Profit	EBITDA
360 ONE Capital Market Pvt. Ltd.	31.76	3.41	NA
HDFC Securities Ltd.	31.97	3.13	5.01
Antique Stock Broking Ltd.	29.46	3.10	4.36
Motilal Oswal Financial Services Ltd.	32.53	2.96	4.64
JM Financial Institutional Securities Pvt. Ltd.	30.91	2.86	4.51
Nuvama Wealth Management Ltd.	33.03	2.77	4.94
ICICI Securities Ltd.	31.04	2.72	4.63
Prabhudas Lilladher Pvt. Ltd.	29.11	2.71	4.40
IDBI Capital Market Services Ltd.	30.57	2.62	4.68
Anand Rathi Share and Stock Brokers Ltd.	30.90	2.61	NA
Average	31.13	2.89	4.65

 

End

 

Edited by Megha Rawat

 

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