Supreme Industries , India's leading plastic products manufacturer, has revised its volume growth guidance for FY26 in response to recent market challenges. The company's performance and outlook reflect the current dynamics in the construction and infrastructure sectors.

Revised Growth Projections

Supreme Industries has adjusted its FY26 volume growth guidance to 12-14%, down from the previous 14-15% forecast. This revision comes after the company reported an 8% volume growth in the first half of the fiscal year, reaching 1.5 lakh metric tonnes.

Market Challenges

The plastic piping business, a key segment for Supreme Industries, faced significant headwinds:

• Prolonged monsoon disrupting construction activities
• Slower government infrastructure spending

These factors have contributed to a challenging market environment for the company.

Financial Performance

Despite the challenges, Supreme Industries has shown resilience in its financial performance:

Future Outlook

The company has provided the following guidance for the current fiscal year:

Management anticipates a demand revival in plumbing and agriculture segments during the second half of the fiscal year.

Expansion and Investments

Supreme Industries continues to invest in its growth:

• ₹869.00 crore capital expenditure in the first half
• ₹250.00 crore allocated for acquiring Orbia Wavin's plastic pipe business
• Total production capacity projected to reach 1.2 million tonnes by March 2026

Market Response

The market has reacted to these developments:

• Shares declined 9% over the past month
• 4% decrease since October 27 following quarterly results

Analyst Perspective

IDBI Capital maintains a 'hold' rating on Supreme Industries with a target price of ₹4,146.00. The stock closed at ₹3,848.50.

As Supreme Industries navigates through these market challenges, investors and industry observers will be closely watching how the company's strategies unfold in the coming quarters, particularly in light of the anticipated demand revival in key segments.

Supreme Industries , a leading plastics product manufacturer in India, reported a decline in profits for the second quarter, reflecting challenging market conditions and increased costs.

Financial Performance

The company's standalone net profit for Q2 fell by 11.9% to ₹193.29 crore, compared to ₹219.39 crore in the same quarter last year. Despite this, Supreme Industries saw an increase in revenue and sales volume:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin contracted by 163 basis points year-on-year, indicating pressure on profitability despite higher sales.

Segment Performance

Supreme Industries operates across various segments, with the Plastic Piping Products division being the largest contributor:

The Plastic Piping Products segment showed strong growth, while other segments experienced declines or marginal changes.

Strategic Developments

Supreme Industries has made significant strategic moves to strengthen its market position:

1. Acquisition of Wavin's Plastic Pipe Business: The company acquired Wavin's Plastic Pipe Business, including three manufacturing units with a total capacity of 71,000 MT per annum, for ₹302 crore.

2. Technology Licensing Agreement: A Master Technology License Agreement was signed with Wavin B.V. Netherlands for exclusive access to existing and future technologies for Plastic Piping systems in India and SAARC countries.

3. Capacity Expansion: The company is progressing with capacity expansions at various locations for Plastic Piping and Protective Packaging products.

4. New Product Launch: Supreme Industries launched its new low-noise polypropylene drainage systems, Serene and Serene Plus, in collaboration with Poloplast Gmbh of Austria.

Outlook

Despite the challenging quarter, the company maintains a positive outlook:

• Expected overall volume growth of 12-14% for the current fiscal year.
• Anticipated volume growth of 15-17% in the Plastic Pipe Segment.
• Plans for new manufacturing units in Bihar, Jammu, and Western Maharashtra.
• Focus on increasing the range of value-added products across all divisions.

Dividend Announcement

The Board of Directors has declared an interim dividend of 550% (₹11 per share) for the financial year 2025-26, with the record date set as November 3, 2025.

Supreme Industries continues to navigate a complex market environment, balancing growth initiatives with profitability challenges. The company's strategic acquisitions and expansions may position it well for future growth, despite the current pressure on margins.