Opening Hook
While the petrochemical world burns with volatile prices, Supreme Petrochem decided to throw investors a curveball – falling margins but a calm face. Q1FY26 was less of a blockbuster and more of an indie flick: niche audience, critical appreciation, but missing the box-office fireworks.
Here’s what we decoded from the not-so-styrene-free therapy session they call a concall.
At a Glance
- Revenue: ₹1,386 cr – down 12% YoY, because styrene decided to take a price dive.
- EBITDA Margin: 9.36%, down from last year’s double digits – margins caught a cold.
- PAT: ₹81 cr – profits shrank as prices rained.
- Volume: Flat at 93,853 MT – growth took a vacation.
The Story So Far
Supreme Petrochem has been riding the polymer wave for years, dominating PS and EPS while planning a shiny new ABS plant. Last year, volumes and margins danced; this quarter, rain spoiled the party. Lower styrene prices and weak OEM demand (thanks to unseasonal rains killing AC and fridge sales) dimmed Q1. But with new capacities and acquisitions, the company is betting on a comeback.
Management’s Key Commentary
- On Performance:
“Margins were under pressure due to styrene price fall and weak OEM demand.”
– Translation: Blame the weather and crude. - On ABS Project:
“Phase 1 commissioning by August, ramp-up to follow.”
– Translation: The new toy arrives soon. - On Xmold Acquisition:
“Integration is underway.”
– Translation: We bought it, now let’s figure out what to do. - On Exports:
“Targeting 13–14% of revenue from exports this year.”
– Translation: We’re packing our bags for global markets. - On Debt:
“We remain debt-free with ₹700 cr surplus.”
– CFO is sleeping peacefully. - On Competition:
“Not worried about EPACK’s capacity.”
– Translation: “Who?”
Numbers Decoded – What the Financials Whisper
| Metric | The Hero | The Sidekick | The Drama Queen |
|---|---|---|---|
| Revenue | ₹1,386 cr | -12% YoY | “Styrene slump killed my vibe.” |
| EBITDA | ₹115 cr | -29% YoY | “Margins crying in the corner.” |
| PAT | ₹81 cr | ↓ YoY | “Still alive, but bruised.” |
One-liner: Revenue dipped, margins slipped, but the balance sheet stayed chill.
Analyst Questions That Spilled the Tea
- On inventory loss:
Management: “No definite number.”
– Translation: Don’t ask, don’t tell. - On ABS volumes:
Management: “50–60% utilization in first six months, full ramp by FY27.”
– Translation: Patience, young Padawan. - On Chinese competition:
Management: “Freight makes them uncompetitive.”
– Translation: Our moat is geography.
Guidance & Outlook – Crystal Ball Section
Management expects 12% volume growth in FY26, with minimal contribution from ABS initially. EPS and PS demand to stabilize; ABS to add flavor by FY27. Export share may inch up to 14%. Haryana plant and Phase 2 ABS are on the distant horizon (FY28).
Risks & Red Flags
- Styrene Volatility – prices swing like a pendulum.
- Seasonal Demand – rains ruined Q1, winters could bite too.
- ABS Ramp-up Risks – new plants love testing investors’ patience.
- Global Trade Flows – geopolitics can flip supply chains overnight.
Market Reaction & Investor Sentiment
Investors saw the dip but stayed hopeful. With debt-free status and upcoming capacities, the mood is cautiously optimistic. The stock may not moon immediately, but the ABS story keeps it in traders’ watchlists.
EduInvesting Take – Our No-BS Analysis
Supreme Petrochem is playing the long game. Q1FY26 was a rain-ruined cricket match – a few good shots but not enough runs. The ABS project is the real game-changer, but it’s still in warm-up. Meanwhile, EPS and PS remain steady cash cows, though margins wobble.
Investors should hold sunscreen for brighter quarters ahead but keep an umbrella for volatility.
Conclusion – The Final Roast
In short, Supreme Petrochem’s Q1FY26 was all about holding ground while waiting for the ABS booster shot. The management is calm, the balance sheet is strong, but markets want proof. Next few quarters will decide if this polymer king retains its crown or slips on its own resin.
Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.
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