- Supreme Industries: FY25 Results & Outlook for FY26
- Key Financial Results for FY25
- Segment-Wise Performance
- Raw Material & Industry Challenges
- Supreme Industries’ Plans for FY26
- Major Developments
- Product and Export Updates
- Current Production Capacity (As of March 2025)
- Market Conditions
- Key Challenges Ahead
- Management’s View
- Other Updates
- FAQs about Supreme Industries
- Final Thoughts
Supreme Industries: FY25 Results & Outlook for FY26
Supreme Industries shared its Q4 and full-year FY25 results on April 24, 2025. The company saw steady growth in some areas but also faced challenges due to falling raw material prices and weak government infrastructure spending. Here’s a breakdown of how the company performed and what’s ahead in FY26.
Key Financial Results for FY25
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Sales Volume | 6.74 lakh MT | 6.39 lakh MT | +5% |
| Net Product Turnover | ₹10,295 Cr | ₹10,022 Cr | +3% |
| Operating Profit (EBITDA) | ₹1,552 Cr | ₹1,654 Cr | -6% |
| Net Profit (PAT) | ₹961 Cr | ₹1,070 Cr | -10% |
| Inventory Loss | ₹150 Cr approx. | — | — |
What happened:
- Supreme Industries sold more products, but profits were lower.
- This was mainly due to a sharp drop in raw material prices, especially PVC.
- The company had to write down inventory value by around ₹150 Cr.
Segment-Wise Performance
| Segment | Volume Growth | Revenue Growth | Comments |
|---|---|---|---|
| Plastic Piping | +6% | +2% | Did better than the market, which shrank 6% |
| Packaging | +10% | +13% | Best-performing segment this year |
| Industrial Products | -1% | Flat | Lost some government orders |
| Consumer Products | -3% | +1% | Flat furniture sales, focus on steel almirahs |
| Value-Added Products | — | +8% | Total turnover ₹4,060 Cr |
Key Insight:
Plastic piping and packaging drove growth, while furniture and industrial products were mostly flat.
Raw Material & Industry Challenges
- PVC Prices were unstable, changing 14 times since July 2024.
- This led to channel destocking as dealers waited for stable prices.
- Inventory losses added to the pressure.
- Government spending on infrastructure was much lower than the previous year.
- Programs like Jal Jeevan Mission (JJM) contributed less than 5% to revenue.
In short:
Falling prices and slow government orders hurt margins.
Supreme Industries’ Plans for FY26
- Target Revenue: Around ₹12,000 Cr
- Plastic Piping Volume: Expected to grow 10–12% (industry average: 7–8%)
- EBITDA Margin Goal: Between 14.5% and 15.5%
- Capex Plan: ₹1,100 Cr (fully funded from company’s own profits)
- Piping Capacity: Aiming for 10 lakh MT by March 2026 (up from 8.72 lakh MT)
Outlook:
The company expects better demand in FY26 and is confident of outpacing the market.
Major Developments
Wavin India Acquisition
- Deal Value: $30 million plus working capital
- Expected Closure: By July 2025
- Capacity Addition: 73,000 MT across 3 plants
- Benefit: Access to global piping technology
- Products will carry “Made with Wavin Technology” under the Supreme Industries brand
OPVC Pipe Expansion
- Partner: Molecor from Spain
- Plan: Set up 9 production lines by 2028
- Focus Area: Pipes under 400mm diameter
- Already approved in over 12 states
New Facility in Kanpur Dehat
- Focus: PVC profiles and windows
- Capacity: 5,000 MT
- Start Date: July 2025
Other Projects in Progress
- PP Silent Piping at Gadegaon
- Revival of the Cross Laminated Film unit
- Protective Packaging: Targeting ₹1,000 Cr revenue in FY26
- Composite Cylinders: Capacity of 10 lakh units, but currently running at 50%
Product and Export Updates
- CPVC Pipes: Volume up 21%
- Industrial Products: Commercial vehicle demand weak, passenger vehicles and appliances steady
- Consumer Almirahs: 8 new designs to launch in Q1 FY26
- Exports: Could grow thanks to changes in global tariffs
- Cross-Plastics Trials: Picking up again as customers return
Current Production Capacity (As of March 2025)
| Segment | Installed Capacity (MT) |
|---|---|
| Piping | 872,000 |
| Packaging | 101,000 |
| Industrial | 91,000 |
| Consumer | 27,000 |
| Total | 1,091,000 |
FY26 Focus:
More investment in plastic piping and window products.
Market Conditions
- Total Industry Size (Plastic Piping): 4.29 million MT in FY25
- Expected Growth in FY26: 7–8%
- Government Budget for Water Infrastructure: ₹67,000 Cr (up from ₹22,000 Cr last year)
- Raw Material Outlook: Crude oil expected to stay between $65–$70 per barrel
- Currency: INR likely to stay stable
Why it matters:
More government spending and stable input costs can help Supreme Industries grow faster.
Key Challenges Ahead
- Raw material price swings
- Slow infrastructure execution by some state governments
- Weak demand for composite cylinders
- Delays in policy approvals for new plant locations (Bihar, Jammu)
Management’s View
- Management is confident that demand will pick up in FY26.
- Growth is expected due to restocking, a good monsoon, and more infrastructure work.
- Capex will be managed from internal cash, avoiding debt.
“We are equipped. We can meet the demand of the market.”
Other Updates
- Tax Rate: 22.4% in FY25 due to some deferred tax adjustments
- Anti-Dumping Duty: Still waiting for the government’s final decision
- Brand Strategy: Supreme will use Wavin’s global tech to strengthen its brand
FAQs about Supreme Industries
What does Supreme Industries do?
Supreme Industries is a major manufacturer of plastic piping, packaging, consumer products, and industrial components. It serves both domestic and export markets.
How did Supreme Industries perform in FY25?
The company grew its sales volume by 5% and revenue by 3%, but profits dropped due to raw material price declines and inventory losses.
What are the growth plans for FY26?
Supreme Industries aims to reach ₹12,000 Cr in revenue with major investments in plastic piping, protective packaging, and new technologies like OPVC pipes.
Is Supreme Industries financially strong?
Yes. The company is funding its entire ₹1,100 Cr capex for FY26 using internal cash without taking on debt.
Final Thoughts
Supreme Industries showed stable performance despite facing headwinds in FY25. It continued investing in technology, capacity, and partnerships. With better market conditions and strong internal planning, it is ready for growth in FY26.
The company’s clear focus on piping, better execution, and the Wavin partnership can give it an edge over others in the same industry.
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I’m Rahul Chaudhary, and I write about everything related to the Share Market. From Stock Trends and Share Prices to the Latest News and IPO Updates, my articles aim to provide you with valuable insights to help you navigate the world of investing. Stay tuned for expert tips and updates to keep you informed!
