Supreme Petrochem has received a credit rating outlook revision from CRISIL, with the rating agency changing its long-term outlook to 'Stable' from 'Positive' while maintaining the company's strong credit ratings. The revision comes amid operational challenges and delays in new capacity ramp-up.

Rating Action Details

CRISIL has revised its outlook on Supreme Petrochem's long-term bank facilities while reaffirming the rating at 'CRISIL AA-'. The short-term rating of 'CRISIL A1+' has been reaffirmed without changes.

Operating Performance Challenges

The outlook revision reflects recent moderation in the company's operating profitability and unexpected delays in commercial ramp-up of new mass acrylonitrile butadiene styrene (ABS) capacity. Operating margin declined to approximately 7.0% in the nine months ended December 31, 2025, compared to 8.9% in fiscal 2025.

Key performance metrics show:

The compression in operating margin stems from lower realisations and overhead under-absorption amid subdued demand from original equipment manufacturers, alongside suspension of ABS operations due to equipment failure.

ABS Project Setbacks

Supreme Petrochem is implementing an ABS project with total capacity of 140,000 MTPA at its Amdoshi plant, executed in two phases of 70,000 MTPA each. While phase one was commissioned in September 2025, operations were suspended in December 2025 due to failure of proprietary equipment.

The company is working with its technology partner to restore operations, with impact partially mitigated as the plant is fully insured and under warranty.

Strategic Acquisition and Expansion

In April 2025, Supreme Petrochem acquired 80% equity stake in Xmold Polymers Pvt Ltd for approximately Rs 31 crore, funded entirely through internal accrual. The company plans to acquire the remaining 20% by March 2027, valuing 100% equity at approximately Rs 40 crore.

Xmold operates a 15,000 TPA polymer compounding plant and serves as an established tier 2 supplier to automobile and appliance OEMs. The acquisition provides immediate captive customer base for Supreme Petrochem's newly added ABS capacity.

Strong Financial Position Maintained

Despite operational challenges, the company maintains a robust financial risk profile with nil material debt and strong liquidity position. As of December 31, 2025, Supreme Petrochem held liquid surplus of Rs 463 crore.

The company plans capital expenditure of Rs 250-350 crore annually over fiscals 2026-2029, to be funded entirely through available liquid surplus and internal accrual. Supreme Petrochem is expected to maintain liquid surplus of Rs 400-500 crore and debt-free balance sheet over the medium term.

Market Leadership Position

Supreme Petrochem maintains over 50% market share in the PS and EPS segments combined, with effective capacity of 300,000 tonne for PS and 118,000 tonne for EPS. The company benefits from high-quality product offerings and established relationships with customers across over 100 countries, holding recognition as a Three Star Export House valid till March 31, 2028.

Supreme Petrochem Ltd has announced the sad demise of Shri Bajranglal Surajimal Taparia, Non-Executive and Non-Independent Director, who passed away on January 30, 2026. The company informed both BSE and NSE about this development under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Director Cessation Details

Consequent to the demise, Shri Bajranglal Surajimal Taparia has ceased to be a Director of the Company with effect from January 30, 2026. The company has described this as an irreparable loss for the organization, its employees, and management.

Management Recognition

The Management of Supreme Petrochem Ltd has placed on record deep appreciation for the valuable guidance and contribution made by Shri Bajranglal Surajimal Taparia during his association with the company. His leadership and insights were valued by the organization throughout his tenure as a director.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 read with Schedule III, Part A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company has also made this information available on its website as required under regulatory guidelines.

The notification was signed by D. N. Mishra, Company Secretary of Supreme Petrochem Ltd, and communicated to both stock exchanges on January 31, 2026. The formal communication was addressed to BSE Limited (Script Code - 500405) and National Stock Exchange of India Ltd (Scrip Code - SPLPETRO).