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Supreme Industries Q3 Profit Drops 18% Despite Revenue Growth

Supreme Industries reported an 18% year-on-year decline in its consolidated net profit for the December quarter of FY26, falling to Rs 153.4 crore. However, the company's revenue from operations grew by 7% to Rs 2,687 crore during the same period. The EBITDA margin narrowed to 11.7% from 12.3% a year ago, even as EBITDA saw modest growth. Managing Director M. P. Taparia cited geopolitical tensions and commodity price volatility but expressed belief that the downward trend has reversed.

Key Points: Supreme Industries Q3 Net Profit Falls 18%, Revenue Up 7%

  • 18% drop in Q3 net profit
  • 7% rise in operational revenue
  • EBITDA margin narrows to 11.7%
  • Capex plan of ~Rs 1,200 crore for FY26
2 min read

Supreme Industries clocks nearly 18 pc drop in Q3 net profit

Supreme Industries reports an 18% decline in Q3 FY26 net profit to Rs 153.4 crore, while revenue grows 7%. EBITDA margin narrows.

"The company believes this downward trend has now reversed. - M. P. Taparia"

Mumbai, Jan 21

Supreme Industries on Wednesday reported 18 per cent year-on-year decline in its consolidated net profit for the December quarter of FY26.

The company's net profit fell to Rs 153.4 crore in Q3 FY26, compared with Rs 187 crore in the same quarter last financial year (Q3 FY25), according to its stock exchange filing.

Despite the fall in profit, revenue from operations rose by 7 per cent to Rs 2,687 crore during the quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 314 crore, registering a modest growth of 1.5 per cent on a year-on-year basis.

However, the EBITDA margin narrowed to 11.7 per cent from 12.3 per cent recorded in the December quarter of the previous year, it said in its filing.

Supreme Industries also shared an update on its capital expenditure plans. The company expects a total cash outgo of around Rs 1,200 crore for the full financial year.

Out of this, capex worth Rs 1,031 crore has already been spent on existing and new projects, including the acquisition of Wavin.

The company said the entire capex will be funded through internal accruals.

In the stock market, shares of Supreme Industries recovered from early losses and turned positive.

The stock was trading 0.4 per cent higher at Rs 3,385. Despite this uptick, the shares are down around 14 per cent over the past 12 months.

"World economy growth is affected by geopolitical tensions in several regions. This has resulted in extreme volatility in commodity prices," M. P. Taparia, Managing Director, The Supreme Industries Limited, said.

"Combination of these factors have resulted in lower growth in world economy in the year 2025. The company believes this downward trend has now reversed," Taparia stated.

He added that polymer prices may have started upward trend. "The polymer producers have gone through quite tough time," Taparia mentioned.

- IANS

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Reader Comments

P
Priya S
The stock is still up today, so the market seems to be looking past the quarterly blip. The capex is huge but funded internally – that's a sign of a strong company. Long-term view is key.
A
Aman W
MD Taparia's point about global volatility is valid. Many Indian companies are facing these headwinds. If polymer prices are going up, Supreme Industries, being a major player, should benefit. Might be a good time to average down if you're already invested.
S
Sarah B
Respectfully, while external factors are there, a near 20% profit decline can't be brushed off just like that. The company should focus on cost control. The EBITDA margin contraction from 12.3% to 11.7% shows internal efficiency could be better.
V
Vikram M
They spent over ₹1000 crore already! That's massive investment for future growth. The plastic and piping industry has solid fundamentals in India with all the infrastructure and housing projects. This is a temporary phase, yaar.
N
Nikhil C
Share price down 14% in a year tells its own story. The quarterly numbers are just a snapshot. Need to see if the "reversal" the MD is talking about materializes in Q4. Waiting for more clarity.

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