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Executive Director Rakesh Nayyar told CNBC-TV18 that the upcoming ABS project could add ₹250 crore to revenue at full capacity, while value-added products currently contribute 36% to the topline. Styrene prices, which fell earlier this year, have now stabilised around $940–$950 per tonne.
Supreme Petrochem is aiming for a 12% growth in volumes in FY26, even as the company posted muted numbers for the June quarter.
"We hope to achieve close to 12% volume growth this year," said Rakesh Nayyar, Executive Director of Supreme Petrochem, in an interview with CNBC-TV18.
The company's volumes in the first quarter remained flat compared to last year, with only a marginal uptick of 0.5%. Demand from the domestic market was subdued, largely due to lower lifting by OEMs amid unseasonal rains that impacted sales of cooling appliances like refrigerators and air conditioners. “The growth was muted this year,” Nayyar noted, adding that even the non-OEM segment saw tepid demand.
On the pricing front, a sharp correction in styrene monomer—its key raw material—also weighed on the topline. Between March and April, prices of styrene fell, which in turn led to lower selling prices for the company.
Nayyar remains optimistic about the ABS (Acrylonitrile Butadiene Styrene) project, which is set to commercialise in the second quarter of the fiscal. Production is expected to begin in August. For the six-month period, Supreme Petrochem plans to utilise about 50–60% of its 70,000-tonne annual capacity. At full capacity, the project could add around ₹250 crore to annual revenue, Nayyar said.
Currently, value-added products account for about 36% of the company’s sales. With the ramp-up of the ABS business, that number is expected to rise.
Meanwhile, styrene prices have stabilised in the $940–$950 per tonne range after declining from around $1,100 earlier this year. Nayyar said these levels are likely to sustain unless there are major changes in global trade dynamics.
The company’s Q1 FY26 revenue declined by 10% year-on-year to ₹1,388 crore. EBITDA fell 21% to ₹115 crore, and Profit After Tax dropped 24% to ₹81 crore.
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