Supreme Petrochem Ltd

Supreme Petrochem Ltd – Closure of Trading Window

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.

Financial Performance

• Standalone Q1 FY27 revenue: INR 1,693 crores, up 22% YoY.
• Operating EBITDA: INR 331 crores, up 188% YoY; margin 19.53%.
• Total EBITDA (incl. other incomes): INR 348 crores; margin 20.3%.
• Net PAT: INR 236 crores; PAT margin recorded as 13.96% (as stated).
• Sales volume: 70,842 MT in Q1 vs 93,853 MT prior year; down 24.5%.

Market Dynamics

• West Asia disruptions led to Te styrene plant suspensions; supply-chain challenges.
• Non-OEM demand remained very subdued; OEM demand stable/good.
• Imports rose due to duty waiver; ~20,000 tonnes imported in quarter; last year imports ~87,000 tonnes.
• Exports were minimal; around 10.12% of normal quarterly export volume.
• Styrene price deltas remained elevated; renewed escalation in West Asia increased styrene prices.

Capex and Capacity Expansion

• Phase-2 EPS capacity expansion completed.
• New wide-width EPS board line: 150,000 m3; compounding capacity: 50,000 to 80,000 tpa; commissioning by Jun 2027.
• Polystyrene line: 80,000 tpa at Amdoshi, Maharashtra; approved; commissioning by Jun 2027.
• Total capex guidance: ~Rs 900 crores for all expansions; funded via internal accruals.
• All capacities expected to be on board by March 2029.

Q&A Highlights

• Non-OEM demand down ~40–50%; OEM demand stable; imports affected demand mix.
• Exports as a share of normal volumes remained weak; volume recovery tied to raw-material and shipping conditions.
• ABS compounding capacity expanding 50,000 to 80,000 tpa; ABS line ramp-up expected over 2–3+ years.
• Margins driven by global deltas; normalization expected if deltas revert; current margin is described as an aberration.
• CAPEX of ~Rs 900 crores planned across EPS, ABS, XPS, and compounding; funding via internal accruals.

Risks and Watchpoints

• Continued West Asia tensions may disrupt supply and keep freight rates elevated.
• Import duty shifts could affect raw-material availability and cost dynamics.
• Shipping space constraints and longer voyage times could affect timely sourcing.
• No explicit market-share or customer-name disclosures; concentration risk remains unquantified.