Supreme Industries (SI IN) – Q4FY26 Result Update – Capex-led expansion to drive medium-term growth – BUY
Published on 27 Apr 2026
Supreme Industries (SI) Q4FY26 volume grew by 16.0% in Q4FY26 and CPVC pipe volumes delivered strong ~38% YoY growth in FY26, while management guided for FY27 overall volume growth of ~12-13% and Pipe segment growth of ~15-17% including Wavin integration. EBITDA margin stood at 14.1% in FY26, in which management has guided for FY27 EBITDA margin in the range of ~14-14.5%, reflecting resilience despite raw material volatility. Its new product segment, i.e. Windows & Doors division, commenced production from Mar’26, and management expects additional revenue of INR 2.0-2.5bn upon full capacity ramp-up. There were inventory gains of ~INR 700-800mn in Q4FY26, while on overall basis for FY26 there was no net inventory gains. Company plans ~INR 10bn capex in FY27 across Pipe (Patna, Jammu, Gadegaon) and Industrial (Malanpur) segments, while maintaining strict 25%+ RoCE thresholds for all projects. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 15.3%/17.3%/23.1%, with volume CAGR of 13.2% and EBITDA margin expansion of ~50bps. We have cut our earnings estimates for FY27/FY28E by 2.0%/1.5% with a TP to INR 4,626 (earlier INR 4,698) based on 40x Mar’28E earnings. Maintain ‘BUY’.
