Supreme Petrochem Reports 27% Revenue Decline in Q2 FY26 Amid Lower Styrene Prices
Supreme Petrochem Limited reported a significant decline in Q2 FY26 financial performance. Operating income fell 27% YoY to 1,100.00 crores. Q2 FY26 EBITDA was 86.00 crores and Net Profit After Tax was 48.00 crores. H1 FY26 Operating Income reached 2,487.00 crores with an EBITDA of 216.00 crores. Sales volume for Q2 FY26 was 76,962 tons. Styrene monomer prices dropped to $850-$950 per metric ton. The company's ABS plant commenced production. Supreme Petrochem remains debt-free with a 522.00 crore surplus. An interim dividend of 125% was recommended.
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Supreme Petrochem Limited, a leading petrochemical company, has reported a significant decline in its Q2 FY26 financial performance, primarily attributed to lower styrene monomer prices and subdued market conditions. The company's results reflect the challenges faced by the petrochemical industry amidst global economic headwinds.
Financial Performance
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Operating Income | 1,100.00 | 1,500.00 | -27.00% |
| EBITDA | 86.00 | - | - |
| Net Profit After Tax | 48.00 | - | - |
For the first half of FY26, Supreme Petrochem reported:
| Metric | H1 FY26 |
|---|---|
| Operating Income | 2,487.00 |
| EBITDA | 216.00 |
| EBITDA Margin | 8.69% |
| Net Profit After Tax | 129.00 |
Key Highlights
Sales Volume: The company's manufacturing product sales volume for Q2 FY26 stood at 76,962 tons, while H1 FY26 volume was 170,826 metric tons, compared to 174,813 metric tons in the corresponding period of the previous year.
Styrene Monomer Prices: The significant drop in styrene monomer prices, which fell to the range of $850-$950 per metric ton from $1,150 in the corresponding quarter last year, was a major factor affecting the company's top line.
ABS Plant Commencement: Supreme Petrochem's ABS plant, with a capacity of 70,000 metric tons per annum, has commenced production in technical collaboration with Versalis.
Financial Position: The company maintains a strong financial position, remaining debt-free with an investible surplus of 522.00 crores as of September 30, 2025.
Interim Dividend: The board has recommended an interim dividend of 125%, which translates to Rs. 2.50 per equity share of face value Rs. 2 each.
Market Challenges
Several factors contributed to the subdued performance:
- Extended monsoons affecting demand for cooling devices
- Deferment of purchases due to anticipated GST rate reduction
- Subdued economic activity across major economies
- Changes in global trade flows due to U.S. trade barriers
- Decline in styrene monomer prices leading to destocking by processors
Future Outlook
While the company faces near-term challenges, the commencement of its ABS plant production marks a significant milestone. The integration of Xmold Polymers is progressing as planned, which may contribute to future growth opportunities.
Supreme Petrochem's debt-free status and strong cash position provide a solid foundation to navigate the current market volatility. The company's focus on expanding its product portfolio and technical collaborations may help in mitigating the impact of market fluctuations in the long term.
As global economic conditions and trade dynamics evolve, Supreme Petrochem's performance in the coming quarters will be closely watched by investors and industry observers alike.
Historical Stock Returns for Supreme Petrochem
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.40% | -7.15% | -9.83% | +15.43% | -0.50% | +486.76% |
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