Supreme Petrochem Q1 FY27: Net Profit Surges ~192% YoY, EBITDA Margin Expands to 19.53%
Supreme Petrochem reported a strong Q1 FY27, with standalone net profit nearly tripling YoY to ₹23,633.43 lakh and EBITDA surging to ₹3.3 billion versus ₹1.15 billion in the year-ago period, driving EBITDA margin expansion to 19.53% from 8.27%. Standalone revenue grew to ₹16.93 billion from ₹13.86 billion YoY, while the Board also approved an 80,000 TPA Polystyrene capacity addition at its Amdoshi Complex for Rs. 325 Crores, to be funded through internal accruals.
*this image is generated using AI for illustrative purposes only.
Supreme Petrochem delivered a strong financial performance for the quarter ended June 30, 2026, with standalone net profit nearly tripling on a year-on-year basis. The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on July 27, 2026, alongside a significant capacity expansion announcement in the Polystyrene segment. Adding to the headline numbers, the company's EBITDA surged to ₹3.3 billion versus ₹1.15 billion in the year-ago period, while the EBITDA margin expanded sharply to 19.53% from 8.27% YoY.
Standalone Financial Performance
The company's standalone financials reflect a substantial improvement across key metrics compared to the corresponding quarter of the previous year. Standalone revenue came in at ₹16.93 billion versus ₹13.86 billion in the year-ago quarter, while standalone net profit stood at ₹2.37 billion compared to ₹809 million in Q1 FY26. The following table presents the key standalone financial highlights:
| Metric: | Q1 FY27 (Jun 30, 2026) | Q4 FY26 (Mar 31, 2026) | Q1 FY26 (Jun 30, 2025) |
|---|---|---|---|
| Sale of Products (₹ lakh): | 1,69,046.37 | 1,58,462.93 | 1,38,273.21 |
| Total Revenue from Operations (₹ lakh): | 1,69,270.78 | 1,58,701.90 | 1,38,654.29 |
| Other Income (₹ lakh): | 1,739.67 | 1,060.25 | 1,506.39 |
| Total Income (₹ lakh): | 1,71,010.45 | 1,59,762.15 | 1,40,160.68 |
| Total Expenses (₹ lakh): | 1,36,216.15 | 1,33,378.42 | 1,27,183.09 |
| Profit before Tax (₹ lakh): | 31,687.45 | 22,922.54 | 10,855.33 |
| Net Profit after Tax (₹ lakh): | 23,633.43 | 16,803.70 | 8,092.24 |
| Basic EPS (₹, not annualised): | 12.57 | 8.94 | 4.30 |
| Diluted EPS (₹, not annualised): | 12.57 | 8.94 | 4.30 |
Standalone total revenue from operations rose to ₹1,69,270.78 lakh in Q1 FY27, compared to ₹1,38,654.29 lakh in Q1 FY26 and ₹1,58,701.90 lakh in Q4 FY26. Net profit after tax stood at ₹23,633.43 lakh, against ₹8,092.24 lakh in Q1 FY26 and ₹16,803.70 lakh in Q4 FY26. Profit before depreciation, interest, exceptional items and tax (PBDIT) on a standalone basis was ₹34,794.30 lakh for the quarter, compared to ₹12,977.59 lakh in Q1 FY26. Basic and diluted earnings per share (not annualised) stood at ₹12.57, up from ₹4.30 in Q1 FY26.
Consolidated Financial Performance
The consolidated results include the financials of the parent company and its subsidiary, Xmold Polymers Pvt Ltd. The table below summarises key consolidated metrics:
| Metric: | Q1 FY27 (Jun 30, 2026) | Q4 FY26 (Mar 31, 2026) | Q1 FY26 (Jun 30, 2025) |
|---|---|---|---|
| Sale of Products (₹ lakh): | 1,71,224.16 | 1,60,323.38 | 1,39,809.72 |
| Total Revenue from Operations (₹ lakh): | 1,71,451.48 | 1,60,567.13 | 1,40,190.80 |
| Other Income (₹ lakh): | 1,741.95 | 1,071.60 | 1,523.62 |
| Total Income (₹ lakh): | 1,73,193.43 | 1,61,638.73 | 1,41,714.42 |
| Total Expenses (₹ lakh): | 1,38,206.48 | 1,35,035.14 | 1,28,549.94 |
| Profit before Tax (₹ lakh): | 31,842.81 | 23,101.61 | 11,010.71 |
| Net Profit after Tax (₹ lakh): | 23,756.90 | 16,870.06 | 8,205.05 |
| Net Profit attributable to Owners (₹ lakh): | 23,732.14 | 16,854.83 | 8,182.49 |
| Net Profit attributable to Non-Controlling Interest (₹ lakh): | 24.76 | 15.23 | 22.56 |
| Basic EPS (₹, not annualised): | 12.62 | 8.97 | 4.35 |
| Diluted EPS (₹, not annualised): | 12.62 | 8.97 | 4.35 |
Consolidated total revenue from operations grew to ₹1,71,451.48 lakh in Q1 FY27, from ₹1,40,190.80 lakh in Q1 FY26. Consolidated net profit after tax was ₹23,756.90 lakh, compared to ₹8,205.05 lakh in Q1 FY26. The consolidated PBDIT stood at ₹34,986.95 lakh for the quarter versus ₹13,164.48 lakh in Q1 FY26. The company noted that it continues to remain debt-free, with finance costs comprising primarily of interest expenses on lease obligations under Ind AS 116.
Capacity Expansion: New Polystyrene Line at Amdoshi Complex
Alongside the financial results, the Board approved the addition of a new Polystyrene production line at the company's Amdoshi Complex. The key details of the expansion are as follows:
| Parameter: | Details |
|---|---|
| Existing Capacity: | 3,00,000 TPA |
| Existing Capacity Utilization: | 80% |
| Proposed Capacity Addition: | 80,000 TPA |
| New Total Capacity (post-expansion): | 3,80,000 TPA |
| Estimated Investment: | Rs. 325 Crores |
| Mode of Financing: | Internal Accruals |
| Target Completion: | March 2029 |
| Rationale: | Increasing demand from appliances sector in India and export potentials |
The new line will be financed entirely through internal accruals, with the company citing increasing demand from the appliances sector in India and export potential as the primary rationale for the investment.
Key Notes and Auditor Observations
The financial results were reviewed by the Audit Committee and approved by the Board of Directors on July 27, 2026. The statutory auditors, Kalyaniwalla & Mistry LLP, conducted a limited review and issued an unmodified conclusion on both the standalone and consolidated financial results. The Group operates in Styrenics and Allied Products, which constitutes a single reportable business segment under Ind AS-108. The paid-up equity share capital remained unchanged at ₹3,760.83 lakh, with a face value of Rs. 2.00 per share.
Historical Stock Returns for Supreme Petrochem
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.60% | +9.66% | +1.13% | +50.33% | -6.02% | +109.64% |
How will the ₹325 crore internal investment in the new Polystyrene line impact Supreme Petrochem's future cash flow generation and dividend payout ratios?
Given the target completion of March 2029, what are the projected market dynamics and pricing trends for Polystyrene that justify this specific timing for capacity expansion?
With EBITDA margins expanding sharply to 19.53%, can Supreme Petrochem sustain these high margins once the new capacity comes online and potential supply glut risks emerge?
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