Supreme Industries , a leading plastic products manufacturer, reported mixed results for the first quarter, with volume growth offset by revenue and profit declines. Despite a challenging quarter, the company has raised its volume growth guidance for the full year, citing improved demand outlook and the integration of its recent acquisition, Wavin Industries.

Q1 Performance Highlights

• Plastic goods sales volume grew 6% to 183,793 tons
• Net product turnover declined 1% to Rs. 2,579.00 crores
• Consolidated profit after tax dropped 26% to Rs. 202.00 crores
• Value-added products contributed Rs. 933.00 crores in revenue

The company attributed the profit decline to inventory losses resulting from falling polymer prices and the early onset of monsoon, which impacted the agricultural piping business.

Segment-wise Performance

Strategic Developments

Supreme Industries completed the acquisition of Wavin Industries for Rs. 310.00 crores, which is expected to be finalized by July 31, 2025. The company has also entered into a technology licensing agreement with Wavin B.V. Netherlands, gaining access to advanced technologies for plastic piping systems in building and infrastructure segments.

Revised Guidance and Outlook

Management has revised its volume growth guidance upward:

• Plastic piping division: 15-17% (up from previous 12-14%)
• Overall company: 14-15%

The company expects EBITDA margins of 14.5-15.5% for the full year.

Expansion Plans

Supreme Industries plans to invest Rs. 1,350.00 crores in capital expenditure to expand its plastic piping capacity to 1 million tons by March 2026. This includes the integration of Wavin's 71,000-ton capacity.

New Product Initiatives

• Launch of polypropylene-based silent pipe system on August 18, 2025
• Introduction of a new range of showers based on PTMT (Polyoxymethylene) material in the coming months
• Commencement of trial production for profile windows in the second quarter

Market Outlook

The company remains optimistic about demand growth in both housing and agriculture segments, citing:

• Bountiful rainfall in most parts of the country
• Improved affordability of polymer prices
• Government commitment to infrastructure spending

M. P. Taparia, Managing Director of Supreme Industries, commented, "We anticipate that the growth number in volume that we told you, we will achieve. The demand for agricultural pipes will be better than last year, despite the challenges faced in May and June."

Challenges and Opportunities

While the company faced headwinds in Q1 due to early monsoon and inventory losses, management expects the situation to improve in the coming quarters. The acquisition of Wavin and the technology licensing agreement are expected to enhance Supreme Industries' product offerings and market reach.

The company is also making inroads into new segments such as gas piping systems and composite LPG cylinders, which could provide additional growth avenues in the future.

As Supreme Industries continues to expand its capacity and product range, it remains focused on increasing the share of value-added products across all its divisions to drive growth and profitability in the coming years.

Supreme Industries Ltd , a leading player in India's plastic industry, has released its financial results for the first quarter, along with significant strategic moves to strengthen its market position.

Financial Performance

The company reported a consolidated net profit after tax of Rs. 202.30 crores for the quarter, marking a 26% decline from Rs. 273.37 crores in the same quarter last year. The total income saw a marginal decrease to Rs. 2,626.13 crores compared to Rs. 2,657.79 crores in the previous year's corresponding quarter.

Here's a breakdown of the key financial metrics:

All figures in Rs. crores, except EPS

Strategic Acquisitions and Partnerships

In a significant move to expand its market presence and technological capabilities, Supreme Industries has announced two major strategic initiatives:

1. Acquisition of Wavin's Indian Operations: The company has entered into Business Transfer Agreements with Wavin Industries Limited and its two wholly-owned subsidiaries. This acquisition, valued at approximately Rs. 310 crores, is expected to be completed by July 31, 2025. Wavin is known for manufacturing and distributing plastic piping products under the "Wavin" brand and is part of the globally renowned Orbia Group.

2. Technology Licensing Agreement: Supreme Industries has signed a Master Technology License Agreement with Wavin B.V. Netherlands, an Orbia group company. This agreement grants Supreme Industries exclusive access to Wavin's existing and future plastic piping technologies for building and infrastructure in India and SAARC countries. The seven-year agreement is set to take effect from August 1, 2025.

Management Commentary

Sarthak Behuria, Chairman of the Meeting, stated, "While our Q1 results reflect the challenging market conditions, we are excited about the strategic moves we've made. The acquisition of Wavin's Indian operations and the technology licensing agreement position us strongly for future growth and innovation in the plastic piping sector."

These strategic initiatives are expected to enhance Supreme Industries' product portfolio and technological capabilities, potentially opening up new growth avenues in the coming years.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 24, 2025.

Investors and stakeholders will be keenly watching how these strategic moves impact the company's performance in the upcoming quarters, as Supreme Industries aims to strengthen its position in the competitive plastic industry landscape.