Supreme Petrochem Ltd (SPL), a leading player in the styrenics industry, has announced significant expansion plans and released its financial results for the second quarter. The company has commissioned its first Acrylonitrile Butadiene Styrene (ABS) production line and reported its quarterly performance amidst challenging market conditions.

New ABS Production Line

SPL has successfully commissioned its first line of ABS production with a capacity of 70,000 TPA at Amdoshi, Dist Raigad, Maharashtra. The project, implemented under license from M/s Versalis S.P.A., Italy, commenced production on September 25. This expansion marks a significant milestone in the company's growth strategy, diversifying its product portfolio and enhancing its market position in the engineering plastics segment.

Financial Performance

For the quarter ended September 30, Supreme Petrochem reported the following consolidated financial results:

The company experienced a significant decline in revenue and profitability compared to the same quarter last year. This performance was attributed to several factors, including:

• Extended and heavy monsoon causing weak demand for cooling devices
• Advance notification of GST rate reductions on durable goods, resulting in deferred purchases
• Subdued business and economic activities across major advanced economies
• Changed trade flows due to tariffs imposed by the USA
• Destocking by processors due to falling styrene monomer and polystyrene prices

Operational Highlights

• Total sales volume of manufactured products decreased to 76,962 MT in the current quarter from 81,566 MT in the same quarter of the previous year.
• For the first half of the current fiscal year, sales volume was lower by 2.3%, from 174,813 MT to 170,826 MT.
• Styrene monomer prices have been on a downward trend, currently at about US$ 800 PMT, down from US$ 940 PMT at the end of June, putting downward pressure on margins.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹2.50 per equity share (125% on face value of ₹2 per share) for the current financial year.

Future Outlook

Despite the current challenges, Supreme Petrochem's expansion into ABS production demonstrates the company's commitment to long-term growth and diversification. The new ABS line is expected to strengthen SPL's position in the engineering plastics market, catering to industries such as automotive, appliances, and consumer goods.

As the company navigates through the current market headwinds, the focus remains on operational efficiency, product diversification, and capitalizing on the new ABS production capabilities to drive future growth.

Investors and stakeholders will be watching closely to see how Supreme Petrochem leverages its expanded product portfolio to overcome the present market challenges and return to a growth trajectory in the coming quarters.

Supreme Petrochem Ltd , a leading petrochemical company, reported a significant decline in its second-quarter profits, while also announcing an interim dividend for its shareholders.

Financial Performance

The company's financial results for Q2 paint a picture of reduced profitability amidst challenging market conditions:

Supreme Petrochem experienced a substantial 46.7% year-over-year decline in net profit, which dropped to ₹481.90 crore from ₹903.40 crore in the same quarter last year. Revenue also saw a significant decrease of 26.9%, falling to ₹1,100.00 crore from ₹1,504.00 crore in the corresponding period.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) contracted sharply by 59.6% to ₹50.50 crore, compared to ₹125.00 crore in Q2 of the previous fiscal year. Consequently, the EBITDA margin narrowed to 4.59% from 8.32%, representing a decline of 373 basis points.

Dividend Announcement

Despite the challenging quarter, Supreme Petrochem's Board of Directors has declared an interim dividend of ₹2.50 per equity share. This dividend represents 125% of the face value of ₹2 per share.

Operational Highlights

The company reported significant developments in its manufacturing capabilities:

1. Supreme Petrochem commissioned its first line of the ABS (Acrylonitrile Butadiene Styrene) project with a capacity of 70,000 TPA at Amdoshi, Dist Raigad, Maharashtra. This project, under license from M/s Versalis S.P.A., Italy, commenced production on September 25, 2025.

2. The company also expanded its ABS Compounding facility, which began production in September 2025.

These operational expansions may potentially contribute to the company's future performance and market position in the petrochemical industry.

Market Implications

The significant decline in profitability and revenue might raise concerns among investors about the company's short-term outlook. However, the declaration of an interim dividend and the expansion of production facilities suggest that the management maintains a positive long-term view on the company's prospects.

Investors and market analysts will likely keep a close watch on how Supreme Petrochem navigates the current challenging environment and whether the new production facilities will help in improving the company's financial performance in the coming quarters.