Supreme Industries (SI IN) – Q1FY27 Result Update – PVC Stabilization to Drive Volume Recovery – BUY
Published on 29 Jul 2026
Supreme Industries (SI) reported a 14.3% YoY decline in Q1FY27 volumes, with the plastic piping segment witnessing a 15.4% YoY decline, primarily due to a sharp correction in PVC resin prices that led to channel destocking at the distributor level. Despite the weak Q1 performance, management reiterated its FY27 guidance, expecting overall volume growth of 12–13% and 15–17% growth in the piping segment and maintaining its EBITDA margin guidance of 14–14.5%. Management expects PVC prices to stabilize following the implementation of MIP and the withdrawal of the customs duty exemption (effective 16 July), which should support channel restocking and demand recovery. Exports remain a key long-term growth driver, with the company targeting an increase in export revenue from USD 26mn to USD 150mn over the next 6–7 years. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 15.8%/18.4%/23.9%, with volume CAGR of 11.4% and EBITDA margin expansion of ~60bps. We have upgrade our earnings estimates for FY27/FY28E by 4.5%/3.5% with a TP to INR 4,610 (earlier INR 4,454) based on 40x Mar’28E earnings. Maintain ‘BUY’.
