1. Opening Hook
Just when investors were getting comfortable calling Supreme Petrochem a “steady compounder,” Q3FY26 arrived like a surprise GST notice. Volumes went up, balance sheet stayed squeaky clean, and yet profits decided to cliff-dive. Management says it’s cyclical. Markets say “we’ve heard that before.” Somewhere in between lies a new ABS plant that started running… and then politely shut itself down.
This concall wasn’t about survival—SPL is debt-free, cash-rich, and still flexing its balance sheet muscles. This was about patience. And whether investors have any left.
Read on, because once we decode the numbers, the ABS drama, and management optimism, things get far more interesting than the headline PAT drop suggests.
2. At a Glance
- Revenue down 10% YoY – Volumes grew, but prices didn’t RSVP to the party.
- EBITDA down 30% – Operating leverage works both ways, unfortunately.
- PAT crashed 58% – Profits didn’t just fall, they tripped downstairs.
- Volumes up 6.7% – Customers showed up; margins didn’t.
- Debt-free with ₹463 Cr surplus – Even bad quarters feel safer with cash.
3. Management’s Key Commentary
“Styrene monomer prices stabilized in December with an upward bias.”
(Translation: Raw material stopped falling, so customers stopped waiting 😏)
“Sales volumes increased by 6.7% in Q3FY26.”
(Translation: Demand is alive, despite what the P&L suggests)
“ABS plant commenced production in September 2025.”
(Translation: Big capex box finally ticked ✅)
“Operations were suspended in December due to equipment malfunction.”
(Translation: Welcome to first-year commissioning
