Supreme Industries held its Q4 FY26 earnings conference call on April 27, 2026, with Chairman and Managing Director M.P. Taparia, CFO P.C. Somani, and VP Corporate Affairs R.J. Saboo presenting audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The call was hosted by DAM Capital Advisors and moderated by Aasim Bharde.

FY26 Financial Performance

The company delivered broad-based growth across volumes and revenues for the full year, despite a challenging operating environment marked by PVC resin price volatility, prolonged unseasonal rainfall, subdued infrastructure spending, and global geopolitical uncertainties. The following table summarises key financial metrics:

Segment-Wise Performance

All four product segments recorded positive growth in both volume and value terms during FY26. The Plastic Piping System business was the standout performer, while the Industrial Products Segment saw relatively modest gains.

Within the Plastic Piping System business, CPVC pipes and fittings recorded volume growth of approximately 38% for the full year. Management noted that the Plastic Piping System industry in India witnessed a volume de-growth of 9% in FY26, making Supreme Industries' outperformance particularly notable. The company's market share in the overall piping segment was indicated at approximately 12%-13%.

Capital Expenditure and Capacity Expansion

Supreme Industries has committed capital expenditure of approximately ₹1,000 crore for the current year, including carry-forward commitments from the previous year. The planned capex is aimed at strengthening manufacturing capabilities, expanding capacity, enhancing product offerings, and advancing sustainability initiatives.

Total addition to assets in FY26 stood at ₹1,400 crore, including the Wavin acquisition. The company also purchased land near JNPT for a proposed packaging facility primarily targeting the export market, with further details to be disclosed once land possession is completed.

New Business Initiatives

The company's Windows & Doors division at Kanpur Dehat in Uttar Pradesh commenced production effective March 1, 2026. The product has been well received in the market, and at full capacity utilisation, the division is expected to generate annual revenues of approximately ₹200 crore to ₹250 crore, with margins expected to be better than company averages given the customised nature of the product. The division is currently available only in Uttar Pradesh and NCR, with a capacity of approximately 10,000 windows per month.

In the gas piping segment, Supreme Industries stated it is currently the only company supplying both pipes and electrofusion fittings required for carrying piped natural gas. Orders have been received from three to four gas companies, with additional orders under negotiation. The company also supplies aluminium composite pipes for above-ground natural gas applications.

The Wavin acquisition, completed in August, saw plants running normally from February 2026 onwards following a revamp period. Wavin contributed approximately 10,000 tons in Q4 FY26, and management guided for 48,000 to 50,000 tons annually from the Wavin plants in FY27. Total annual capacity from Wavin stands at 70,000 tons.

PVC Resin Prices and Raw Material Dynamics

PVC resin prices witnessed significant volatility during FY26. Management noted that prices rose by approximately ₹32 per kg in March before correcting by approximately ₹34 per kg between April 5 and April 21. Current PVC resin prices were indicated at approximately ₹81 per kg. Management attributed the price correction to increased supply from China, which manufactures PVC via a coal-based route and is not affected by Gulf region supply disruptions. India imports approximately 68% of its PVC resin requirement, with only 32% supplied domestically.

For Q4 FY26, management estimated a net inventory gain of approximately ₹70 crore to ₹80 crore, while noting that for the full year, inventory gains and losses broadly offset each other. For Q1 FY27, management indicated an inventory loss given the sharp price decline in April.

FY27 Outlook and Guidance

Management provided the following guidance for FY27:

• Overall volume growth: 12%-13%
• Plastic Piping System volume growth: 15%-17%
• EBITDA margins: 14%-14.5%
• Return on capital employed: In excess of 25% (consistent with the last 18 years)
• Industry-level piping growth (FY27): ~8% (as indicated by raw material producers)

Management also noted that the Jal Jeevan Mission (Nal Se Jal) spending remains uncertain, as central government fund releases are contingent on matching contributions from state governments. Over the past two years, against an announced budget of ₹67,000 crore, actual spending was approximately ₹22,000 crore each year. Agriculture segment demand was noted to have normalised following the PVC price correction, with strong demand pickup reported post-April 10. The company's export business in plastic piping currently stands at $5 million, with a stated ambition to grow this to $50 million.

Supreme Industries highlighted its zero-debt balance sheet, expanding manufacturing base across 45 systems and over 15,600 SKUs, and its five strategic pillars — Innovation, Smart Manufacturing, Strong Relationships with Channel Partners, Effective Customer Service, and Deeper Reach across the Country — as key enablers for sustained performance.

Supreme Industries Ltd has delivered exceptional financial performance for the fourth quarter, reporting consolidated net profit of ₹4.30 billion compared to ₹2.94 billion in the same period last year, marking a substantial 46% year-on-year growth. The company also achieved strong revenue growth with quarterly revenue reaching ₹35.30 billion versus ₹30.08 billion in the previous year.

Q4 Financial Performance

The company's latest quarterly results showcase robust business performance across all key financial metrics, with particularly impressive EBITDA growth and margin expansion demonstrating effective operational execution and improved profitability.

Strong Operational Efficiency

The significant improvement in EBITDA margin from 13.73% to 17.66% reflects Supreme Industries' enhanced operational efficiency and cost management capabilities. The 393 basis points margin expansion alongside robust revenue growth indicates strong pricing power and operational leverage.

FY27 Business Guidance

During the earnings conference call, Supreme Industries management provided comprehensive guidance for FY27, outlining growth expectations across key business segments and margin projections for the upcoming fiscal year.

Management Outlook and Confidence

Management expressed strong confidence in delivering improved performance in the coming year, highlighting the company's robust fundamentals and strategic positioning. The leadership cited several key strengths including a strong balance sheet with zero debt, an expanding manufacturing base, technology leadership, and a diversified business model. This confidence is further supported by sustained growth expectations in the Indian economy driven by domestic consumption and infrastructure development.

New Greenfield Projects Expansion

Supreme Industries has announced strategic expansion through new greenfield projects across multiple locations. The company plans to establish plastic piping systems facilities at Patna in Bihar, Jammu in J&K, and Gadegaon in Maharashtra. Additionally, a material handling product facility will be set up at Malanpur in Madhya Pradesh.

Major Capital Expenditure Plan

Supreme Industries announced an ambitious capital expenditure plan exceeding ₹1,000 crore for the year, including carry-forward commitments from previous periods. This substantial investment aims to enhance manufacturing capabilities and significantly expand production capacity across key business segments.