Supreme Industries , a leading plastic products manufacturer, has reported a mixed performance for the first half of FY26, with volume growth offset by margin pressures. The company's management remains optimistic about the second half, citing expected recovery in agricultural demand and growth in the protective packaging division.

Key Financial Highlights

• Volume Growth: Supreme Industries achieved an 8% volume growth in plastic goods sales, reaching 338,224 MT during H1 FY26.
• Revenue: Net product turnover rose by 2% to Rs. 4,951.00 crores.
• Profitability: Consolidated operating profit declined by 15% to Rs. 656.00 crores, while profit after tax dropped by 24% to Rs. 367.00 crores compared to the previous year.

Segment Performance

The company's performance varied across different product segments:

Wavin Acquisition and Expansion

Supreme Industries completed the acquisition of Wavin's plastic pipe business, adding three manufacturing units with a combined annual capacity of 71,000 MT. This strategic move is expected to enhance the company's market reach and technological capabilities in the plastic piping segment.

Outlook and Management Commentary

• The company maintains its volume growth guidance of 12-14% for the full year.
• Management expects EBITDA margins to be between 14.5-15% for FY26.
• The protective packaging division is anticipated to reach the Rs. 1,000.00 crores revenue milestone.
• Supreme Industries plans to expand its export market presence, aiming to increase exports from the current 3% to 5% of total turnover.

Dividend Declaration

The Board of Directors has declared an interim dividend of 550% (Rs. 11.00 per share), reflecting confidence in the company's financial position and future prospects.

Challenges and Opportunities

• The company faced inventory losses of Rs. 50.00-60.00 crores in H1 FY26 due to falling polymer prices.
• Extended rainfall impacted demand in the agricultural sector, but management expects a rebound in the second half.
• Supreme Industries is exploring new technologies acquired through the Wavin deal, which could potentially drive future growth.

As Supreme Industries navigates through a challenging market environment, its strategic acquisitions, capacity expansions, and focus on value-added products position it well for potential growth in the coming quarters. Investors will be keenly watching the company's performance in the second half of FY26, particularly in the high-potential agricultural and protective packaging segments.

Supreme Industries , a leading plastic products manufacturer, recently executed a significant block trade on the National Stock Exchange (NSE), demonstrating notable market activity for the company's shares.

Block Trade Details

This substantial transaction highlights investor interest in Supreme Industries and could potentially impact the company's stock performance in the short term.

Company Performance Context

While the block trade is a significant event, it's important to consider it within the broader context of Supreme Industries' recent financial performance. The company's latest quarterly results show:

The company has shown a year-over-year increase in total income, although there's a slight decrease in net profit. This financial backdrop provides context for the recent block trade, suggesting continued market interest despite minor fluctuations in profitability.

Dividend Announcement

Supreme Industries' Board of Directors has declared an interim dividend of 550% (Rs. 11 per share of Rs. 2 face value) for the financial year 2025-26. The dividend will be paid to shareholders whose names appear on the Register of Members as of November 3, 2025.

This dividend declaration, coupled with the recent block trade, underscores the company's financial health and its commitment to delivering value to shareholders.

As Supreme Industries continues to navigate the plastics industry, investors and market watchers will likely keep a close eye on further developments and how they might impact the company's market position and stock performance.