Supreme Petrochem Ltd

ESG rating update

• NSE Sustainability Ratings & Analytics Ltd independently assigned an ESG rating to Supreme Petrochem.
• Company did not engage the rating agency; rating based on publicly available information.
• Date of communication: August 11, 2026.

Business Overview

• Core business: polystyrene, EPS, ABS, masterbatches, and XPS products across two manufacturing sites.
• Amdoshi complex capacity 533,000 TPA; Manali EPS 33,000 TPA.
• Zero liquid discharge; about 50% power from renewables.
• India's first XPS insulation foam board plant.
• Acquired Xmold Polymers Pvt Ltd to diversify polymer compounds supply.
• Formed as a joint venture between Supreme Industries and Rajan Raheja Group.
• Solar plant of 12.5 MW with Tata Renewable Energy; renewable energy share ~50%.
• State-of-the-art Styrenics complex at Amdoshi; market leader with >50% market share.

Operational Highlights

• EPS expansion completed; XPS capacity up to 122,000 cu m from 72,000.
• Compounding capacity up to 80,000 TPA from 50,000 initiated.
• Hormuz closure prompted alternate domestic supply arrangements.
• Exports suspended due to styrene shortage and elevated freight.
• Imports rose after duty suspension, affecting local market share.
• Acquisition of Xmold Polymers Pvt Ltd strengthens polymer compounds supply.

Financial Performance

• Q1 FY27 revenue INR 16,927 Mn; EBITDA INR 3,305 Mn; PAT INR 2,363 Mn.
• Q1 FY27 EBITDA margin 19.53%; PAT margin 13.96%; EPS INR 12.57.
• FY26 revenue INR 53,384 Mn; EBITDA INR 5,148 Mn; PAT INR 3,273 Mn.
• FY26 EBITDA margin 9.64%; PAT margin 6.13%; total EBITDA INR 5,581 Mn.
• Q1-FY27 total EBITDA INR 3,479 Mn; total EBITDA margin 20.34%; PAT growth elevated.
• Debt-free with investable surplus INR 874 Cr as of June 2026; capex funded internally.

Capital Structure & Liquidity

• CRISIL rating: long-term AA-/Stable; short-term A1+.
• Debt-free with investable surplus INR 874 crore at end-Jun 2026.
• All capex funded from internal cash accruals.

Strategic Priorities & Outlook

• EPS expansion completed; XPS capacity to 122,000 cu m; compounding to 80,000 TPA.
• Capex funded internally; maintain debt-free balance sheet.
• Xmold acquisition strengthens polymer compounds supply.
• Sustainability focus: renewable energy use and recycling initiatives.

Risks & Mitigation

• Hormuz closure disrupted Gulf supply; alternate arrangements established.
• Exports suspended due to styrene shortage and higher freight costs.
• Duty suspension increased imports; potential local market share erosion.
• Styrene price volatility affecting demand; monitoring supply chain.

Governance & Leadership

• Board comprises chairperson and independent directors; no material governance changes disclosed.

Business Overview

• SPL formed as a JV between Supreme Industries and Rajan Raheja Group.
• Two plants: Amdoshi/Roha, Maharashtra and Manali New Town, Chennai.
• Amdoshi complex capacity: 533,000 TPA polymers; Manali EPS 33,000 TPA.
• Product lines include GPPS, HIPS, ABS, EPS, XPS, masterbatches, and compounds.
• Sustainability: 12.5 MW solar plant with Tata Renewable Energy; ~50% power from renewables.
• Acquired Xmold Polymers Pvt Ltd, a Tier II polymer compounds supplier.
• India's first XPS insulation board plant; internationally scaled Styrenics complex at Amdoshi.
• Zero-liquid discharge at both plants; renewable energy reduces conventional power usage.
• Board chaired by Shri Shivratan J Taparia; includes independent directors.

Key Operational Highlights

• Q1-FY27 revenue INR 16,927 Mn; YoY growth 22.1%.
• Q1-FY27 EBITDA INR 3,305 Mn; EBITDA margin 19.53%.
• Q1-FY27 PAT INR 2,363 Mn; PAT margin 13.96%; diluted EPS INR 12.57.
• Total Q1-FY27 EBITDA INR 3,479 Mn; total EBITDA margin 20.34%.
• Sales volume Q1-FY27: 70,842 MT; down 24.5% YoY due to exports suspension.
• EPS second phase expansion completed.
• XPS capacity expanded to 122,000 cu m; compounding capacity to 80,000 TPA initiated.
• Hormuz Strait closure disrupted Gulf styrene supply; alternate arrangements secured.
• Exports suspended; imports up due to duty changes; domestic demand subdued.

Financial Performance

• FY24 revenue INR 52,533 Mn; EBITDA margin 8.89%.
• FY25 revenue INR 60,234 Mn; EBITDA margin 8.84%.
• FY26 revenue INR 53,384 Mn; EBITDA margin 9.64%.
• FY26 PAT INR 3,273 Mn; PAT margin 6.13%.
• FY26 total EBITDA INR 5,581 Mn; total EBITDA margin 10.37%.
• Q1-FY27 revenue INR 16,927 Mn; PAT INR 2,363 Mn; diluted EPS INR 12.57.
• FY26 ROCE 21%; RONW 14%.

Capital Structure & Liquidity

• Debt-free with investable surplus of INR 874 crore as of June 2026.
• All capital expenditure funded from internal cash accruals.

Strategic Priorities & Outlook

• Sustain leadership in Styrenics; expand XPS and compounding capacity.
• Maintain self-funded growth with strong internal cash generation.
• Advance sustainability agenda: renewable power, zero-liquid discharge, and recycling post-consumer EPS.

Risks & Mitigation

• Geopolitical supply disruption (Hormuz) mitigated by alternate supply arrangements.
• Export exposure reduced; domestic demand mix affected by price/freight volatility.
• Import duty changes raising import competition; management monitoring market share.

Governance & Leadership

• Board composition includes Chairperson Shri Shivratan J Taparia and independent directors.

Financial performance

• Standalone revenue from operations: Rs 1,63,270.78 Lakhs; total income: Rs 1,71,010.45 Lakhs.
• Standalone PAT: Rs 23,633.43 Lakhs; PBT: Rs 31,687.45 Lakhs; EPS Basic/Diluted: Rs 12.57.
• Consolidated revenue from operations: Rs 1,71,451.46 Lakhs; total income: Rs 1,73,193.43 Lakhs.
• Consolidated PAT: Rs 23,756.50 Lakhs; EPS Basic/Diluted: Rs 12.62.
• Debt-free status continues; finance cost largely lease interest under Ind AS 116.
• Auditors' limited review concluded unmodified for standalone and consolidated results.

Capex & capacity expansion

• New polystyrene line of 80,000 TPA at Amdoshi Complex; capex Rs 325 Crores.
• Post-expansion PS capacity will be 380,000 TPA; existing 300,000 TPA.
• Capex financed by internal accruals; commissioning targeted by March 2029.
• Rationale: rising appliances demand in India; export potential.

Financial results

• Standalone and Consolidated unaudited results for quarter ended June 30, 2026 approved; LR issued.
• Results prepared under Ind AS 34; Audit Committee reviewed; Board approved July 27, 2026.
• Group remains debt-free with single reportable segment (Styrenics and Allied Products).
• March 31, 2026 figures are balancing figures between audited full-year and Q3 figures.

Expansion plan and funding

• New polystyrene line of 80,000 TPA at Amdoshi Complex; investment Rs 325 crore.
• Capacity to reach 380,000 TPA after expansion; completion by March 2029.
• Financing through internal accruals; rationale: rising appliances demand and export potential.
• Investment size Rs 325 crore; no external funding.

Annexure details

• Existing capacity 300,000 TPA with 80% utilization.
• Proposed capacity addition 80,000 TPA; to be added by March 2029.
• Rationale: increasing domestic appliance demand and export potential.
• Rs 325 crore investment funded via internal accruals.
• Annexure-A discloses capacity details and investment.

Audit and compliance notes

• Statutory auditor conducted limited review; unmodified conclusion.
• Review indicates no material misstatement; standard limitations noted.

Meeting Details

• Board meeting on July 27, 2026 at 3:30 p.m. at Solitaire Corporate Park, Andheri East, Mumbai.

Key Agenda Items

• Consider and approve standalone and consolidated unaudited financial results for the quarter ended June 30, 2026.

Other Notes

• No additional material notes beyond the announced board meeting details.

AGM Details

• Date and time: July 14, 2026, at 4:00 PM IST.
• Mode: VC / OAVM.
• End time: 5:25 PM IST.
• Record date for eligibility: July 1, 2026.
• Remote e-voting period: July 10–13, 2026.

Key Resolutions

• Resolution 1: Adoption of audited financial statements including consolidated results.
• Resolution 2: Dividend proposal—interim Rs 2.50 and final Rs 8 per share.
• Resolution 3: Re-appointment of M. P. Taparia as promoter director.
• Resolution 4: Re-appointment of S. J. Taparia as non-executive director.
• Resolution 5: Re-appointment of N. Gopal as Manager from Apr 20, 2026 to Mar 31, 2029.
• Resolution 6: Ratification of remuneration of Cost Auditor for FY 2026-27.

Voting Results

• Resolution 1: Passed; no significant dissent reported.
• Resolution 2: Passed; full support from all categories.
• Resolution 3: Passed; no notable opposition.
• Resolution 4: Passed; no notable opposition.
• Resolution 5: Passed; no notable opposition.
• Resolution 6: Passed; remuneration ratified.

Dividend

• Interim dividend of Rs 2.50 per share; final dividend Rs 8.00 per share.

Director & Manager Changes

• M. P. Taparia re-appointed as Non-Executive Promoter Director.
• S. J. Taparia re-appointed as Non-Executive Non-Independent Director.
• N. Gopal re-appointed as Manager (Apr 2026–Mar 2029).

Auditors

• Cost Auditor remuneration for FY 2026-27 ratified.