Supreme Industries targets 15–17% volume growth in plastic piping segment for FY26 despite weak Q1

Supreme Industries is eyeing a volume growth of 15–17% in its plastic piping segment for FY26, backed by improving demand conditions and price stability.

“With improving demand and smart restocking, we anticipate volume growth in the plastic piping division will be between 15% to 17% this year,” said MP Taparia, MD of Supreme Industries, in an interview with CNBC-TV18.

This comes even as the company’s Q1 FY26 results missed Street estimates. Net profit declined 26% year-on-year to ₹202 crore, while revenue slipped 1% to ₹2,609 crore. EBITDA fell 17.6% to ₹319 crore, and margins narrowed to 12.2% from 14.7% last year.

Taparia attributed the Q1 margin pressure to a combination of early monsoon rains and sharp fluctuations in PVC resin prices, which impacted agricultural demand and caused inventory losses. “The rains came 20 days before the normal season, so the agricultural demand was contracted. Also, there was a seven-time price variation in PVC during the quarter,” he said.

Despite this, Supreme is maintaining its full-year guidance of ₹12,000 crore in turnover and an operating margin between 14.5% and 15.5%.

Looking ahead, Taparia said Q2 demand has been stronger, particularly from housing and infrastructure segments, even though agricultural demand remains soft. He also noted that PVC prices have likely bottomed out, with suppliers now building sales at current levels. “We believe the bottom has come,” he added.

On the regulatory front, anti-dumping duty on PVC imports may be imposed soon, which could support local pricing. The Directorate General of Trade Remedies (DGTR) is expected to recommend the final rate in August, with a Finance Ministry notification likely within two to three months.

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