Supreme Petrochem Limited FY26 Financial Performance and Corporate Updates

Reporting Period: FY 2025-26

Document Dates: June 17, 2026 (AGM Notice) and April 24, 2026 (Financial Statements)

Financial Performance Highlights

Supreme Petrochem reported challenging financial results for FY26 with net profit declining 16.2% to ₹327.31 crore (₹32,731 lakh) compared to ₹390.52 crore in FY25. Revenue from operations decreased 11.4% to ₹5,338.40 crore (₹53,384 lakh) from ₹6,023.38 crore in the previous year. The decline was primarily attributed to a 17% drop in average styrene monomer prices, though sales volume increased 2% to 363,201 MT with domestic volume up 1.6% and export volume growing 5.4%.

Earnings per share stood at ₹17.41 compared to ₹20.77 in FY25. The company maintained strong capacity utilization exceeding 80% across all products. Book value per share improved to ₹126 from ₹119 in the previous year.

Dividend Declaration and Capital Structure

The Board recommended a final dividend of ₹8.00 per equity share, which together with the interim dividend of ₹2.50 per share already paid, amounts to a total dividend of ₹10.50 per share for FY26 (compared to ₹10.00 per share in FY25). The dividend payout ratio represents 60.32% of net profit. The final dividend is subject to shareholder approval at the 37th AGM scheduled for July 14, 2026.

The company's capital structure consists of 18,80,41,342 equity shares of ₹2 each, totaling paid-up equity capital of ₹37,60,82,684. Reserves and surplus stood at ₹233,261 lakhs with net worth of ₹237,022 lakhs. The holding company had previously undergone capital reduction during FY 2021-22, reducing share capital from ₹9,402.07 lakhs to ₹3,760.83 lakhs.

Strategic Acquisition and Expansion

The company completed the acquisition of 80% stake in Xmold Polymers Private Limited for ₹3,141.60 lakhs (₹3141.60 lakhs as per different documents) in April 2025. Xmold is an engineering thermoplastic compounds producer with 15,000 TPA capacity. The acquisition resulted in recognition of ₹1,599.53 lakhs goodwill. The company has committed to acquire the remaining 20% stake by March 2027 for ₹785.40 lakhs.

Exceptional Item and Labor Code Impact

The company recognized an exceptional item of ₹997.34 lakh pertaining to estimated incremental liability towards gratuity and compensated absences arising from the notification of new Labour Codes by the Government of India on November 21, 2025. This included ₹818.58 lakh for gratuity and ₹178.76 lakh for compensated absences. The rules for these codes are yet to be framed by Central/State Governments, and the company will update estimates once rules are notified.

ESG and Sustainability Performance

The Business Responsibility and Sustainability Report (BRSR) disclosed comprehensive ESG metrics:

  • Energy: Total consumption of 468,764 GJ with 23.3% from renewable sources
  • Water: Total withdrawal of 684,728 kl with Zero Liquid Discharge implementation
  • Emissions: Scope 1+2 emissions of 39,776 tCO2e with external assurance by Bureau Veritas
  • Human Rights: 100% employee training coverage, 5.6% female wage ratio
  • Governance: Zero complaints across human rights categories and POSH
  • CSR: Expenditure of ₹815.64 lakh against obligation of ₹1,042.82 lakh

The report received reasonable assurance opinion on BRSR Core disclosures.

Corporate Governance and AGM Matters

The 37th AGM will be held virtually on July 14, 2026, with e-voting available from July 10-13, 2026. Key agenda items include reappointment of directors M. P. Taparia and S. J. Taparia, both over 75 years old, requiring special resolutions under SEBI regulations. The Board comprises 11 directors (4 Non-Executive Non-Independent, 1 Whole-time, 6 Independent) with 5 meetings held during FY25-26.

Regulatory Compliance and Auditors

Statutory auditors Kalyaniwalla & Mistry LLP provided unqualified opinion on financial statements. Key audit matters included inventory valuation (₹61,430.77 lakh) and PPE capitalization for major projects. The company maintained debt-free status except for lease liabilities of ₹12,607.79 lakhs and minor SIDBI borrowings. Disputed tax matters include GST of ₹160.04 lakh and Income Tax of ₹172.90 lakh.

Credit Ratings and Outlook

The company maintains strong credit ratings with CRISIL: Long-term AA-/Stable, Short-term A1+ and India Ratings: Long-term IND AA-/Stable, Short-term IND A1+.

Subsequent Events and Outlook

No subsequent events requiring adjustment were noted as of balance sheet date. The company continues to focus on operational efficiency and strategic growth through the Xmold Polymers acquisition while navigating challenging market conditions and regulatory changes.