1. At a Glance
With 50% of India’s Polystyrene market under its belt and a shiny ₹15,378 Cr market cap, Supreme Petrochem looks like the captain of the plastic ship. But FY26 started with a bang—or was it just a bubble? Q1 PAT down 33%, OPM hanging at 8%, and P/E at 44x. This plastic might need polishing.
2. Introduction with Hook
Imagine running a monopoly in a sector no one tweets about. That’s Supreme Petrochem. Half of India’s polystyrene addiction is courtesy of them — from ice cream tubs to TV frames. It’s like being the Coca-Cola of boring plastic.
- FY25 Revenue: ₹6,023 Cr
- Q1 FY26 PAT: ₹81 Cr (down from ₹122 Cr YoY)
- ROCE: 22.8% — hotter than Delhi in May
3. Business Model (WTF Do They Even Do?)
They manufacture Polystyrene and Expanded Polystyrene — fancy names for materials that go into your fridge liners, packaging, TV frames, and maybe even your helmet foam.
- Core: Polystyrene (50% market share)
- Premium: India’s only XPS board maker
- Diversifying: Into ABS via Xmotd Polymers, now a subsidiary
- Export footprint: Growing, especially in Asian and African markets
Basically, they’re the silent backbone of packaging, appliances, and insulation. The “background actor” of industrial manufacturing.
4. Financials Overview
Let’s unwrap the shrink wrap:
| Metric | FY25 | Q1 FY26 |
|---|---|---|
| Revenue (TTM) | ₹5,836 Cr | ₹1,387 Cr |
| EBITDA | ₹484 Cr | ₹115 Cr |
| Net Profit | ₹350 Cr | ₹81 Cr |
| EPS | ₹18.57 | ₹4.30 |
| OPM | 8% | 8% |
Margins used to flex at 21% (FY21), but now hang around 8–9% — flatter than old soda.
5. Valuation
Supreme is trading at 44x P/E — which for a plastic-heavy cyclical business is… optimistic. Like paying ₹1000 for airport idli.
Valuation Range:
| Method | Fair Value |
|---|---|
| P/E (20–25x) | ₹375 – ₹470 |
| EV/EBITDA (8–10x) | ₹500 – ₹620 |
CMP ₹818? This is pricing in a full-blown polymer renaissance.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: PAT down 33%, OPM stable — not disastrous, but not inspiring either.
- Xmotd Polymers Acquisition: Diversifying into ABS (Acrylonitrile Butadiene Styrene) — bold move or distraction?
- ABS Plant: Pre-commissioning started — revenue impact expected from FY27.
- Dividend Payout: Healthy 48% — because if nothing else, they pay.
Still, earnings call may reveal the real juice — or melted plastic.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity | ₹38 Cr |
| Reserves | ₹2,194 Cr |
| Borrowings | ₹130 Cr |
| Total Liabilities | ₹3,448 Cr |
| Net Worth | ₹2,232 Cr |
Almost debt-free. Net cash generation is solid. Reserves heavier than some PSU budgets.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹304 Cr | -₹147 Cr | -₹194 Cr | ₹-37 Cr |
| FY24 | ₹557 Cr | -₹182 Cr | -₹197 Cr | ₹178 Cr |
| FY25 | ₹342 Cr | -₹330 Cr | -₹212 Cr | ₹-201 Cr |
They generate solid cash, then spend it like it’s Diwali. Big capex on ABS and XPS. Good? Yes. Risky? Also yes.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 22.8% |
| ROE | 17.4% |
| D/E | 0.06 |
| PAT Margin | 6.0% |
| P/E | 44.0x |
ROCE still elite. D/E almost non-existent. But P/E screams “priced for perfection” — and that’s rare in commodities.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹5,287 Cr | ₹661 Cr | ₹498 Cr |
| FY24 | ₹5,253 Cr | ₹473 Cr | ₹346 Cr |
| FY25 | ₹6,023 Cr | ₹535 Cr | ₹391 Cr |
Stable revenues, but PAT slipping faster than an oiled staircase. Efficiency’s needed. Or price hikes.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROCE |
|---|---|---|---|---|
| Swan Energy | ₹4,938 | -₹16 Cr | 21.2x | 14.3% |
| Rain Ind. | ₹15,472 | -₹449 Cr | NA | 4.5% |
| DCW | ₹2,000 | ₹30 Cr | 72x | 8% |
| Supreme Petro | ₹5,836 | ₹350 Cr | 44x | 22.8% |
Compared to this mess, Supreme looks like the only sober person at the chemical stock party. But also the most expensive.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 64.24% |
| FIIs | 3.55% |
| DIIs | 3.76% |
| Public | 28.36% |
Stable promoter holding. FIIs and DIIs have been slowly nibbling. Public? Slowly vanishing — maybe off to mid-cap IT.
13. EduInvesting Verdict™
Supreme Petrochem is well-run, profitable, and boring in the best way possible. But at 44x earnings, you’re not buying plastic — you’re buying perfection. And in commodity land, perfection is as rare as a SEBI circular without confusion.
Built to last. But maybe wait for a discount bin before adding to cart.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Supreme Petrochem, Polystyrene, ABS, Q1 FY26, EduInvesting Premium
