Supreme Petrochem Ltd Q2FY26 Concall Decoded: – Monsoon Meltdown, ABS Debut & Styrene Blues

1. Opening Hook

While most companies were praying for festive demand, Supreme Petrochem was praying for the monsoon to just stop raining on its EPS parade. The quarter looked more like a chemistry class gone wrong—raw material prices evaporated, processors destocked, and styrene sulked at $800/MT. But amidst this chaos, Supreme quietly birthed a shiny new ABS plant (finally), and CFO Rakesh Nayyar entered the battlefield with calm optimism and a ₹522 crore cash pile.
Grab your lab coats, because this one swings between polymer heartbreak and ABS rebirth.

2. At a Glance

• Revenue ₹1,100 Cr (↓27% YoY): CFO blamed the weather, trade wars, and maybe the stars.
• EBITDA ₹86 Cr (↓50% YoY): Margins slipped faster than crude prices.
• EBITDA Margin 7.8%: Efficiency went missing with the sun.
• PAT ₹48 Cr (↓60% YoY): Profit took a polymer bath.
• Volumes 76,962 tons: Even processors decided to ‘declutter’.
• Interim Dividend ₹2.5/share: Because nothing says optimism like cash-back during chaos.

3. Management’s Key Commentary

“Revenue drop is mainly due to lower styrene prices—$800 now vs $1,150 last year.”
(Translation: We didn’t sell less; the world just got cheaper 🫠.)

“Monsoon hit demand for cooling appliances, leading to destocking.”
(Translation: No one buys ACs in a flood, who knew?)

“ABS plant with Versalis tech is now live, trials ongoing.”
(Translation: We built it, now pray customers like it.)

“We remain debt-free with ₹522 crore investible surplus.”
(Translation: We’re rich, just not richer.)

“ABS Phase 2 to complete by FY’28.”
(Translation: Mark your calendars; by then even AI will be trading polymers.)

“Xmold integration on track, SAP implemented.”
(Translation: Small company, big ERP dreams 😎.)

“Capacity utilization ~72% in Q2; expect better H2.”
(Translation: Machines were chilling too.)

“We’ll fund all capex internally—no borrowings.”
(Translation: Banks can keep their EMIs to themselves.)

4. Numbers Decoded