Supreme Industries (SI IN) – Q3FY26 Result Update – PVC bottoms out; demand to drive growth – BUY
Published on 21 Jan 2026
Supreme Industries’ (SI) Q3FY26 volume grew by 12.9% above our estimate of 10.4%. In Q4FY26, SI expects stabilization in PVC prices and improvement in demand across agriculture, housing, and infrastructure to support robust growth. EBITDA margin in Q3FY26 remained flat at 12.3%. In 9MFY26, the company incurred an inventory loss of Rs 1–1.2bn due to PVC price fluctuation. In Q3FY26, finance costs increased due to short-term borrowings taken to fund capex; however, the company expects to be debt-free by the end of FY26. The management has maintained its FY26 guidance of overall volume growth of 12-14% and 15-17% for P&F segment, however revised EBITDA margin guidance to 13.5-14% from 14.5–15%. We estimate FY25-28E revenue/EBITDA/PAT CAGR of 11.8%/14.3%/14.7%, with volume CAGR of 12.8% and EBITDA margin expansion of ~90bps. We have cut our earnings estimates for FY27/FY28E by 2.5%/3.4% with a TP to Rs4,566 (earlier Rs 4,726) based on 40x Mar’28E earnings. Maintain ‘BUY’’
