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.

Supreme Industries Limited , a leading plastics product manufacturer in India, recently executed a significant block trade on the National Stock Exchange (NSE). The transaction involved 281,364 shares changing hands at a price of Rs. 3,835.90 per share, amounting to a total value of Rs. 107.93 crores.

This block trade comes on the heels of the company's recently announced financial results for the second quarter and half-year ended September 30. Let's delve into the key highlights of Supreme Industries' performance:

Financial Performance

Supreme Industries has reported a mixed set of numbers for Q2:

*All figures in Rs. Crores

Despite a 5.32% increase in revenue, the company experienced a decline in profitability. The operating profit decreased by 6.86%, while PBT and PAT saw more significant drops of 12.80% and 11.90% respectively.

Volume Growth and Dividend

On a positive note, Supreme Industries reported an 11.84% increase in plastic goods sold, reaching 154,431 MT in Q2 FY26 compared to 138,077 MT in Q2 FY25. This volume growth indicates strong demand for the company's products.

The Board of Directors has declared an interim dividend of 550%, translating to Rs. 11 per share (face value Rs. 2 each) for the financial year 2025-26.

Segment Performance

The company's performance varied across its different business segments:

1. Plastics Piping Products: Revenue grew to Rs. 1,602.09 crores, up from Rs. 1,437.93 crores in Q2 FY25.
2. Industrial Products: Saw a decline to Rs. 282.56 crores from Rs. 327.56 crores.
3. Packaging Products: Slight decline to Rs. 393.51 crores from Rs. 399.86 crores.
4. Consumer Products: Marginal decline to Rs. 103.31 crores from Rs. 103.89 crores.

Strategic Developments

Supreme Industries has made significant strategic moves:

1. Acquired Wavin's Plastic Pipe Business, including three manufacturing units with a total capacity of 71,000 MT per annum, for Rs. 302 crores.
2. Entered into a Master Technology License Agreement with Wavin B.V. Netherlands for exclusive access to plastic piping technologies in India and SAARC countries.

Outlook

The company expects to grow its overall volume by 12% to 14% this year. In the Plastics Pipe Segment, Supreme Industries maintains a volume growth target of 15% to 17% for the current year, despite challenges in the agriculture segment due to extended monsoons.

The recent block trade, coupled with these financial results and strategic initiatives, suggests that investors are closely watching Supreme Industries' performance and future prospects in the evolving plastics industry landscape.