Supreme Industries Limited (NSE:SUPREMEIND), India's leading plastics product manufacturer, announced its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026 on 28 July 2026. Despite a 14.29% decline in plastic goods volumes to 157,536 MT, the company reported standalone profit after tax of Rs 207.76 crores, up 17.14% year-on-year, while consolidated PAT surged 38.76% to Rs 280.72 crores, reflecting significant margin expansion across both metrics.
Key Highlights
- Standalone total income grew 3.83% year-on-year to Rs 2,726.79 crores in Q1 FY27, while standalone PAT increased 17.14% to Rs 207.76 crores despite volume headwinds.
- Consolidated PAT rose 38.76% year-on-year to Rs 280.72 crores in Q1 FY27, with consolidated operating profit expanding 36.89% to Rs 471 crores.
- Operating profit margin improved to 14.60% of total income on a standalone basis (from 12.15% in Q1 FY26) and to 17.27% on a consolidated basis (from 13.10% in Q1 FY26).
- Cash surplus stood at Rs 542 crores as of 30 June 2026, declining from Rs 648 crores as of 31 March 2026, reflecting working capital deployment and capacity expansion investments.
- Value-added products revenue increased 22% quarter-on-quarter to Rs 1,142 crores, up from Rs 933 crores in the corresponding quarter of the prior year.
- Plastic goods volumes declined 14.29% year-on-year to 157,536 MT in Q1 FY27, primarily due to inventory correction triggered by abnormal polymer price volatility in April 2026.
- Earnings per share (standalone) increased to Rs 16.36 per share in Q1 FY27 from Rs 13.96 per share in Q1 FY26, while consolidated EPS rose to Rs 22.10 from Rs 15.93.
About the Company
Supreme Industries Limited is India's leading plastics product manufacturer, headquartered in Mumbai and listed on the National Stock Exchange under the ticker SUPREMEIND. The company manufactures and markets a comprehensive range of plastic products across multiple segments, including plastic piping systems, cross-laminated films and related products, protective packaging products, industrial moulded components, moulded furniture, storage and material handling products, performance packaging films, composite liquefied petroleum gas cylinders, and uPVC windows and doors. The company operates 35 technologically advanced manufacturing facilities located across India. Supreme Industries serves a broad customer base through a well-established distribution network of dealers and distributors, supported by orientation and training programs to ensure quality service delivery to end customers.
Announcement in Detail
Supreme Industries reported standalone total income of Rs 2,726.79 crores in Q1 FY27, representing 3.83% growth compared to Rs 2,626.12 crores in Q1 FY26. However, the company's volume of plastic goods sold declined to 157,536 MT from 183,793 MT in the same quarter of the prior year, a contraction of 14.29%. The company attributed this volume decline to extraordinary volatility in polymer prices, particularly an abnormal downward price movement in April 2026 that triggered inventory correction across the value chain. Despite lower volumes, standalone operating profit increased 24.73% to Rs 398.04 crores, and standalone profit before tax rose 16.83% to Rs 280.68 crores, translating to a standalone PAT of Rs 207.76 crores, an increase of 17.14% year-on-year.
On a consolidated basis, Supreme Industries reported total income of Rs 2,726.79 crores in Q1 FY27 compared to Rs 2,626.13 crores in Q1 FY26. Consolidated operating profit expanded significantly to Rs 471 crores in Q1 FY27, up 36.89% from Rs 344.06 crores in Q1 FY26. Consolidated profit before tax increased 33.36% to Rs 353.64 crores, while consolidated PAT surged 38.76% to Rs 280.72 crores from Rs 202.30 crores in the corresponding prior-year quarter. The consolidated operating profit margin expanded to 17.27% of total income in Q1 FY27 from 13.10% in Q1 FY26, indicating strong operational leverage and improved cost management. Value-added products, a key focus area for the company, achieved revenue of Rs 1,142 crores during Q1 FY27, representing 22% growth compared to Rs 933 crores in Q1 FY26.
The company's cash surplus declined to Rs 542 crores as of 30 June 2026 from Rs 648 crores as of 31 March 2026, reflecting active deployment of capital toward working capital requirements and expansion initiatives. Standalone cash earning per share reached Rs 25.99 in Q1 FY27, up from Rs 21.29 in Q1 FY26, while consolidated cash EPS increased to Rs 31.73 from Rs 23.25 in the prior-year quarter. The company's financial performance on both standalone and consolidated bases reflects margin expansion despite headwinds in absolute volume, driven by product mix improvement toward higher-margin value-added offerings and operational efficiency gains.
Impact on Investors
Investors will note that Supreme Industries has demonstrated significant margin expansion and profit growth despite a challenging operating environment characterized by polymer price volatility and volume contraction. The 17.14% year-on-year increase in standalone PAT and the 38.76% surge in consolidated PAT signal strong operational execution and pricing discipline. The improvement in operating profit margins, both standalone (from 12.15% to 14.60%) and consolidated (from 13.10% to 17.27%), reflects the company's successful shift toward value-added product offerings, which grew 22% year-on-year and command higher margins. Standalone EPS increased to Rs 16.36 from Rs 13.96, while consolidated EPS rose to Rs 22.10 from Rs 15.93, directly benefiting equity shareholders. The filing shows that the cash surplus, though lower sequentially at Rs 542 crores, remains substantial and indicates the company retains financial flexibility to fund ongoing capacity expansion at locations including Bihar, Jammu, Malanpur, Puducherry, and Erode.
Investors should note that the 14.29% decline in plastic goods volumes is a material operational headwind that the company attributes to temporary inventory correction following April 2026 polymer price volatility. The management commentary indicates confidence that business momentum will improve as channel inventories normalize and removal of customs duty exemptions on PVC resin effective 16 July 2026 stabilizes market conditions. The successful integration of the Wavin business and the launch of the uPVC windows and doors segment represent new growth vectors, though these remain early-stage contributions to overall earnings. The disclosed financial metrics demonstrate the company's ability to maintain profitability and shareholder returns during cyclical commodity volatility, a relevant consideration for investors assessing dividend sustainability and reinvestment capacity.
Sector / Market Context
India's plastics manufacturing sector has experienced significant cyclicality driven by volatility in raw material costs, particularly polyvinyl chloride and polyethylene resin prices traded on global commodity exchanges. The April 2026 polymer price decline that triggered the inventory correction disclosed in Supreme Industries' results reflected broader feedstock market dynamics. The removal of customs duty exemptions on PVC resin effective 16 July 2026, combined with the introduction of Minimum Import Prices for suspension-grade PVC resin, are regulatory measures that may stabilize domestic pricing and support margin preservation across the domestic plastics manufacturing industry. India's infrastructure development, urbanization initiatives, water management projects, and expansion of gas distribution networks represent structural growth drivers for plastic piping systems, a core business segment for Supreme Industries. India's recently concluded free trade agreements with the UAE, Australia, EFTA nations, the United Kingdom, and the European Union expand market access for plastic products exports, providing long-term demand tailwinds for manufacturers with export capabilities and product certifications.