Supreme Industries: Can Supreme Industries regain momentum after chopping FY26 progress steerage?

ET Intelligence Group: Shares of Supreme Industries, the nation’s largest producer of plastic merchandise, have declined 9% over the previous month and 4% since October 27, following the corporate’s September quarter outcomes. The corporate has lowered FY26 quantity progress steerage to 12-14%, from 14-15% after volumes within the first half of the fiscal grew by a tepid 8% to 1.5 lakh metric tonnes. The steerage displays the corporate’s expectation of a double-digit quantity progress within the the rest of the 12 months. Its plastic piping enterprise, a key progress driver, confronted short-term headwinds because of the extended monsoon, which disrupted building and set up actions. Slower authorities spending on infrastructure-related segments additionally affected total demand.

Regardless of the near-term challenges, the corporate’s administration expects stronger demand in plumbing and agriculture segments and a gradual revival in infrastructure exercise within the second half of FY26. It expects annual turnover to vary between ₹11,000 crore and ₹11,500 crore and working margin for the 12 months to be between 14.5% and 15%.

By March 2026, the corporate’s plastic piping capability is projected to exceed 1 million tonnes, taking the whole manufacturing capability to round 1.2 million tonnes.

Through the first half of the 12 months, it incurred a capital expenditure of ₹869 crore, which incorporates Rs 250 crore acquisition price of Orbia Wavin’s plastic pipe enterprise in India. The deal grew to become efficient on August 1, 2025. Whole anticipated money outflow for ongoing and new capital commitments is estimated at round ₹1,300 crore, which will probably be totally funded via inside accruals.

The corporate plans to determine a brand new materials dealing with merchandise unit at Malanpur in Madhya Pradesh along with greenfield tasks in Bihar and Jammu for the plastic piping division, and in western Maharashtra for the protecting packaging division.

Supreme’s income rose 5% year-on-year to ₹2,394 crore within the second quarter. The plastic piping phase recorded an 11% progress in income to ₹1,602 crore through the quarter. IDBI Capital, which has a ‘maintain’ name on the inventory with a goal value of ₹4,146, stated that the corporate is poised to do nicely given its sturdy capability, in depth distribution community, and wholesome steadiness sheet. The inventory ended Wednesday’s session at ₹3,848.5 on BSE.