1. At a Glance
Supreme Industries reported Q1 FY26 net profit of ₹202 Cr—down 26% YoY, because even plastics can bend under pressure. Revenue stayed flat at ₹2,609 Cr, but margins? They melted like PVC in the Chennai sun. Valuation still sky-high at 60x earnings, but hey, who said being Supreme comes cheap?
2. Introduction with Hook
Imagine a factory that produces everything—pipes, chairs, boxes, film, packaging, and your childhood water tank—and still ends up making you wonder if you’re paying Gucci prices for plastic buckets. That’s Supreme Industries.
While Q1 results weren’t exactly fireworks, the company just bought Wavin India’s ₹310 Cr business and bagged exclusive tech rights. This is not just a pipe dream anymore—it’s a PVC empire.
3. Business Model (WTF Do They Even Do?)
Supreme Industries makes plastics. But not just any plastics. We’re talking:
- Pipes that don’t leak
- Chairs that survive Indian weddings
- Films that wrap like pros
- Bubble wrap for your fragile ego
They operate in 7 verticals, but the big daddy is Plastic Piping Products (67% of revenue), followed by industrial components, furniture, and packaging. Over 14,000 SKUs, because clearly, someone in product dev has commitment issues.
4. Financials Overview
| Metric (Q1 FY26) | Value |
|---|---|
| Revenue | ₹2,609 Cr |
| EBITDA | ₹319 Cr |
| Net Profit | ₹202 Cr |
| EBITDA Margin | 12.2% |
| YoY PAT Decline | -26% |
| OPM | 12% |
Margins are tighter than airport security. Blame resin price swings and PVC demand hiccups. The good news? Debt is almost zero. The bad? You’re still paying a P/E of 60+.
5. Valuation
Fair Value Range: ₹3,650 – ₹3,950
- P/E Method: EPS (TTM) = ₹70. At 55x → ₹3,850
- EV/EBITDA: EBITDA (TTM) = ₹1,363 Cr. EV at 25x → ₹34,000 Cr → FV ~ ₹3,650/share
Supreme is priced like it’s launching an IPO every quarter. But brand strength, moat, and balance sheet keep the bulls from bolting.
6. What’s Cooking – News, Triggers, Drama
- Wavin India Buy: ₹310 Cr deal = stronger piping portfolio. Supreme just got supreme-er.
- Exclusive Tech License: Global tie-ups are in. Margin pressure might be temporary.
- Margins Dropped YoY: Blame volatile PVC and raw material costs.
- Q1 Concall: Management says demand is recovering. Also said in Q4. And Q3. Stay tuned.
More cautious optimism than drama. Unless resin prices go full K-drama next quarter.
7. Balance Sheet
| Metric (₹ Cr) | FY25 |
|---|---|
| Equity Capital | ₹25 |
| Reserves | ₹5,635 |
| Borrowings | ₹76 |
| Total Assets | ₹7,168 |
| Net Worth | ₹5,660 |
The company is virtually debt-free, and net worth has been compounding faster than your screen time. Fixed assets are rising with expansion, and CWIP jumped to ₹407 Cr—so capex is alive and well.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹890 Cr | -₹345 Cr | -₹327 Cr | ₹219 Cr |
| FY24 | ₹1,413 Cr | -₹591 Cr | -₹382 Cr | ₹441 Cr |
| FY25 | ₹1,004 Cr | -₹798 Cr | -₹440 Cr | -₹234 Cr |
Cash flow from ops = excellent
Cash burn in investing = heavy
Net cash is down YoY, but healthy reserves ensure no panic buttons pressed.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 17.1% |
| ROCE | 22.0% |
| D/E Ratio | 0.01 |
| OPM | 13% |
| P/E | 60.6 |
| Dividend Yield | 0.80% |
ROCE is still flexing. ROE is fit. But P/E? Bro, we get it—you’re premium. Just don’t get delusional.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | PAT |
|---|---|---|
| FY23 | ₹9,202 Cr | ₹865 Cr |
| FY24 | ₹10,134 Cr | ₹1,070 Cr |
| FY25 | ₹10,446 Cr | ₹961 Cr |
Sales up 13%, but profit down 10% YoY. Because top line is vanity, bottom line is sanity—and PVC prices love chaos.
11. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Supreme Industries | 60.6 | 17.1% | 13.1% |
| Astral Ltd | 76.3 | 15.3% | 16.2% |
| Finolex Industries | 29.0 | 7.9% | 11.5% |
| Time Techno | 27.0 | 14.2% | 14.3% |
Supreme vs Astral = T20 Final
Everyone else = warm-up match
12. Miscellaneous – Shareholding, Promoters
| Stakeholders | Jun 2025 |
|---|---|
| Promoters | 48.9% |
| FIIs | 21.9% |
| DIIs | 14.6% |
| Public | 14.5% |
Promoters aren’t adding, but they aren’t selling either. FIIs trimmed a bit, DIIs are rediscovering their crush, and the public? Still paying retail premium like it’s a Zara store.
13. EduInvesting Verdict™
Supreme is still Supreme—despite margin hiccups and profit decline. It’s almost debt-free, has strong distribution, and is expanding with surgical precision. But valuation is more stretched than its polymer film.
Verdict:
Top-notch brand. Great moat. But don’t expect discount-store pricing. It’s a blue-chip in plastic’s clothing.
Metadata:
Written by EduInvesting Team | July 25, 2025
Tags: Supreme Industries, Q1 FY26, Plastic Pipes, Packaging, EduInvesting Premium
