Supreme Petrochem Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Supreme Petrochem Ltd filed with BSE on 04 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Supreme Petrochem reported standalone Q1 FY27 revenue of Rs 1,693 crore, up 22% year-on-year, driven by higher raw material prices rather than volume growth, as sales volumes declined 24.5% due to a West Asia supply crisis. Operating EBITDA grew 188% year-on-year to Rs 331 crore with margins improving to 19.53%, aided by a wider delta between styrene monomer and downstream products. Management also outlined several capacity expansion projects, including a new polystyrene line and increased EPS and compounding capacity, to be funded through internal accruals.
Numbers mentioned
Revenue from operations: INR 1693 crores (Q1 FY27)
p. 3
“On a standalone basis, the revenue from the operations for the 1st Quarter stood at INR 1693 crores, reflecting a growth of 22% year-on-year basis.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Operating EBITDA: INR 331 crores (Q1 FY27)
p. 3
“The operating EBITDA stood at INR 331 crores, reflecting a strong growth of I88% year-onyear, with operating EBITDA margins improving lo 19.53%.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Total EBITDA including other income: INR 348 crores (Q1 FY27)
p. 3
“The total EBITDA, including other incomes, stood at INR 348 crores, with margins of 20.3%.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Net profit after tax: INR 236 crores (Q1 FY27)
p. 3
“The net profit after tax was at INR 236 crores, with a pAT margin of t3.96% for the quarter.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Sales volume of manufactured products: 70,842 metric tons (Q1 FY27)
p. 3
“On the operational front, the sales volume of manufactured products stood at 70,842 metric tons during the 1st Quarter, as compared to 93,853 metric tons in the corresponding quarter of thepreviousyear.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Total estimated investment on expansion projects: INR 450 crores
p. 4
“Total estimated investment on above projects is lNR. 450 crores which will be funded entirely through internal accruals'”
Rakesh Nayyar, page 4 of the filed PDF · View the filing
CAPEX for the year: closer to 900 crores
p. 10
“This all CAPEX put together would be closer to 900 crores'”
Rakesh Nayyar, page 10 of the filed PDF · View the filing
Current styrene monomer price landed in India CIF: around USD1300
p. 10
“current prices landed in lndia clF is around usD130o.”
Rakesh Nayyar, page 10 of the filed PDF · View the filing
Current GPPS delta: USD250 to USD275
p. 11
“Current delta for GP would be closer to say USD250 to USD275.”
Rakesh Nayyar, page 11 of the filed PDF · View the filing
Current HIPS delta: closer to USD350
p. 11
“HIPS could be closer to USD350 or so'”
Rakesh Nayyar, page 11 of the filed PDF · View the filing
Trading sales as percentage of top line: around 17-18% (Q1 FY27)
p. 6
“Trading sales in the 1st Quarter is not as high as the earlier days. I do not have the number here but I think around 17-I8% of the top line.”
Rakesh Nayyar, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Wide-width EPS board and compounding capacity commissioning — 150,000 cubic meters EPS board and compounding expansion from 50,000 to 80,000 tons per annum · June 2027
stated firmly by Rakesh Nayyar
p. 4
“These will be commissioned by June 2027.”
Rakesh Nayyar, page 4 of the filed PDF · View the filing
New polystyrene production line at Amdoshi complex — increase total installed polystyrene capacity from 3,00,000 tons per annum to 3,80,000 tons per annum · December 2028
stated firmly by Rakesh Nayyar
p. 4
“The project is expected to be completed by December 2028 and will increase the company's total installed polystyrene capacity from 3,00,000 tons per annum to 3,80,000 tons per annum.”
Rakesh Nayyar, page 4 of the filed PDF · View the filing
Volume guidance — FY27
stated conditionally by Rakesh Nayyar
p. 7
“Giving any guidance at this stage when the situation is very fluid is very difficult'”
Rakesh Nayyar, page 7 of the filed PDF · View the filing
ABS compounding capacity utilization — fully use expanded capacity · next 2 years after June 2027
stated as an aspiration by Rakesh Nayyar
p. 6
“Certainly yes, that is the aim we have and with that view only this capacity is being put up that this will come up by June 2027 and in the next 2 years or so thereafter we should be able to use this capacity.”
Rakesh Nayyar, page 6 of the filed PDF · View the filing
ABS compounds capacity sell-out — fully sell out capacity · next three to four years
stated as an aspiration by Rakesh Nayyar
p. 9
“ln the next three to four years we should be able to fully sell out that capacity.”
Rakesh Nayyar, page 9 of the filed PDF · View the filing
Completion of all announced capacities — March 2029
stated firmly by Rakesh Nayyar
p. 10
“All capacities will be on board by March 2029.”
Rakesh Nayyar, page 10 of the filed PDF · View the filing
EPS exports
stated conditionally by Rakesh Nayyar
p. 9
“But once the situation normalizes and the shipping opens up, we would certainly be exporting EP5.”
Rakesh Nayyar, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Non-OEM demand fell sharply due to high prices while OEM demand remained stable; unofficial market data suggested about 20,000 tons of polystyrene imports in the quarter.
Answered by Rakesh Nayyar
Asked by Nirav Jamudia: How was the demand and import situation given the raw material disruption?
p. 4
“Almost 50% demand from the non-OEM segment had evaporated in this quarter'”
Rakesh Nayyar, page 4 of the filed PDF · View the filing
Management said this crisis is regional and prolonged, unlike past isolated plant shutdowns, and not comparable even to COVID-era disruptions.
Answered by Rakesh Nayyar
Asked by Nirav Jamudia: How is this disruption different from past cycles?
p. 5
“It is not one plant, one source but it is a full region from where the material is not coming in and even during COVID times, this situation was not there.”
Rakesh Nayyar, page 5 of the filed PDF · View the filing
Management clarified imports were tied to a temporary duty exemption and were not unusually high historically, while non-OEM demand itself was down.
Answered by Rakesh Nayyar
Asked by Aditya Khetan: Was the volume decline due to demand fall or higher imports taking market share?
p. 7
“since the government gave the duty exemption for those 3 and a half months there was a tendency to import some material more than the need was.”
Rakesh Nayyar, page 7 of the filed PDF · View the filing
Management said margins depend on global deltas and that the current wide deltas are an aberration expected to normalize.
Answered by Rakesh Nayyar
Asked by Aditya Khetan: What is the sustainability of the current ~19% margin?
p. 8
“This margin which has come in, is like an aberration because of the global deltas were very-very strong from USD200 for GPPS, global deltas have gone up to plus 300 plus and for HIPS which used to be around usD275 to USD300 went upto 400 plus.”
Rakesh Nayyar, page 8 of the filed PDF · View the filing
Management attributed the improvement entirely to widened global deltas rather than volume growth, noting a 25% volume decline.
Answered by Rakesh Nayyar
Asked by Disha Chamriya: What drove the profit improvement and how sustainable is it?
p. 8
“We had 25% reduction in volumes as compared to the corresponding quarter of the last year and these margins have come in because the global deltas between the building block and the end product widened and that helped us also'”
Rakesh Nayyar, page 8 of the filed PDF · View the filing
Management said EPS expansion is complete, current focus is ABS line 2, XPS and compounding, and a new polystyrene 5th line was just approved.
Answered by Rakesh Nayyar
Asked by Sailesh Raja: What is the CAPEX roadmap and how will it be allocated across products?
p. 10
“currently we are only focusing on our ABS line 2 and XPs and our compounding lines and now only the day before our board has approved our polystyrene 5th line for us.”
Rakesh Nayyar, page 10 of the filed PDF · View the filing
Management said the decline was in line with the industry, though EPS de-growth was relatively smaller.
Answered by Rakesh Nayyar
Asked by Santosh Keshri: Did the company de-grow more or less than the industry?
p. 12
“No, at par with the industry. EPS is very fragmented in up north.”
Rakesh Nayyar, page 12 of the filed PDF · View the filing
Management said non-OEM demand initially weakened but is now returning as customers reconcile to higher global prices.
Answered by Rakesh Nayyar
Asked by Rohan Joshi: How have customers responded to the sharp price increases?
p. 14
“So, the demand from the non-OEMs is back into the market now.”
Rakesh Nayyar, page 14 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict in West Asia disrupting raw material supply and shipping
p. 3
“During the quarter, geopolitical tensions in West Asia and the disruptions of cargo movement through the Strait of Hormuz led to significant interruption in liquid and container shipments from the Gulf region.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Suspension of styrene plant operations in the region
p. 3
“ln addition, all three styrene plants in the region, which are amongst the company's traditional suppliers, suspended their operations due to safety reasons, creating significant supply chain challenges.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Higher freight rates and reduced shipping availability affecting exports
p. 3
“However, exports were minimal due to reduced availability of styrene monomers and significant increase in freight rates, reduced shipping availability and longer voyage time.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Temporary import duty exemption on polymers eroding domestic market share
p. 3
“Further, the temporary suspension of import duties on commodity polymers introduced to offset the impact of high import costs led to unnecessarily increased imports resulting in erosion of market share for domestic producers.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Renewed escalation of hostilities increasing styrene monomer prices
p. 3
“However, the renewed escalation of hostilities in West Asia has once again resulted in increase in styrene monomer prices.”
Rakesh Nayyar, page 3 of the filed PDF · View the filing
Uncertainty over exports, styrene availability and shipping conditions
p. 7
“the way the uncertainty is there in the West Asian region today there are concerns with regard to the exports, with regard to the availability of styrene and the volumes of styrene coming in and there are other concerns with regard to the availability of shipping space, voyage time freight rates, etc.”
Rakesh Nayyar, page 7 of the filed PDF · View the filing
Higher freight costs from alternate, non-Gulf sourcing arrangements
p. 13
“Of course the freight rate are more. The freight cost will increase because the Gulf is only four days voyage, five days voyage, max one week voyage.”
Rakesh Nayyar, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.