Supreme Industries’ Profit Down by 26.1% in June Quarter

Mumbai, July 24, 2025 – Supreme Industries Ltd (NSE: SUPREMEIND) reported a sequential drop in Q1FY26 earnings, with profit and revenue both declining compared to the previous quarter. The subdued quarterly performance comes despite the company pursuing expansion initiatives, including a major acquisition and a new technology licensing deal.

Segment results show continued reliance on the Plastic Piping Products division, which contributed nearly 69% of total revenue. Lower associate income and elevated base costs weighed on net earnings. Strategic moves in the piping business signal a focus on long-term growth through technology integration and market consolidation.

As of 14:17 IST on July 24, 2025, Supreme Industries was trading at ₹4,193.30, up 1.45% from the previous close. The stock touched an intraday high of ₹4,243.30 and low of ₹4,019.50, with 3.84 lakh shares traded during the session.

Key Consolidated Financial Highlights

In Q1FY26, Supreme Industries reported consolidated revenue from operations of ₹2,609.21 crore, broadly flat year-on-year but down sequentially from ₹3,027.07 crore in Q4FY25. Total income followed a similar trend, coming in at ₹2,626.13 crore compared to ₹2,657.79 crore in Q1FY25 and ₹3,039.52 crore last quarter.

Profit after tax declined to ₹202.30 crore from ₹293.94 crore in Q4FY25 and ₹273.37 crore in the same quarter last year. Profit before tax stood at ₹265.18 crore. EPS for the quarter dropped to ₹15.93, reflecting the overall moderation in earnings.

Segment Performance

As per the segment results, the Plastic Piping Products segment contributed ₹1,792.31 crore, nearly 69% of total revenue, followed by Packaging Products at ₹501.35 crore. Segment-wise EBIT stood at ₹157.39 crore for plastic piping and ₹45.73 crore for packaging.

Business Developments

Supreme Industries has entered into a Business Transfer Agreement (BTA) with Wavin Industries Limited to acquire its Indian piping business (Wavin India Pipes & Fittings Mfg. Pvt. Ltd. and Wavin India Holding Pvt. Ltd.) for ₹310 crore (excluding working capital). The deal is expected to close by July 31, 2025, subject to closing conditions.

Additionally, a Master Technology License Agreement with Wavin B.V. (Orbia Group) will enable Supreme to access proprietary technologies for plastic piping for 7 years starting August 1, 2025 across India and SAARC countries.

Management Commentary

The company did not include specific management commentary in the filing, though the strong push on acquisition and licensing suggests a strategic focus on expansion in the building and infrastructure segment via technological partnerships.

Earnings Review

The consolidated EPS fell to ₹15.93 in Q1FY26 from ₹23.14 in Q4FY25 and ₹21.52 in Q1FY25. The drop reflects not only lower operational income but also a decrease in associate contribution and higher base costs compared to the sequential quarter.

Auditor’s Observation

The review report by Lodha & Co LLP on page 6-7 confirmed an unmodified opinion, with no material misstatements found in the consolidated financials for Q1FY26.

About the Company

Supreme Industries Ltd is a leading manufacturer of plastic products in India, listed on NSE and BSE. The company operates across plastic piping, packaging, consumer, and industrial product segments, and holds a 30.78% stake in associate Supreme Petrochem Ltd.

REF:https://nsearchives.nseindia.com/corporate/SUPREMEIND_24072025130108_FinancialResultsJune25.pdf

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