• The document contains the transcript of the Q1 FY27 Earnings Conference Call held on July 29, 2026, to discuss the company's quarterly results.
  • The call was moderated by Purvangi Jain from Valorem Advisors, who represent the company's investor relations.
  • Management participants included Mr. Rakesh Nayyar (Executive Director and CFO), Mr. Dilip Deole (AVP of Finance and Accounts), and Mr. D.N. Mishra (Company Secretary).
  • The call included a standard cautionary statement about forward-looking statements being subject to risks and uncertainties.

Financial Highlights Discussed:

  • Q1 FY27 standalone revenue stood at INR 1,693 crores, reflecting 22% YoY growth
  • Operating EBITDA was INR 331 crores with margins of 19.53%, showing 188% YoY growth
  • Total EBITDA including other income was INR 348 crores with margins of 20.3%
  • Net profit after tax was INR 236 crores with PAT margin of 13.96%
  • Sales volume of manufactured products declined 24.5% to 70,842 metric tons from 93,853 metric tons in Q1 FY26

Operational Challenges:

  • Volume decline attributed to negligible exports due to West Asia crisis and subdued demand from non-OEM segment
  • Geopolitical tensions in West Asia disrupted cargo movement through Strait of Hormuz
  • Three styrene plants in the region (traditional suppliers) suspended operations due to safety reasons
  • Company established alternate supply arrangements to meet domestic customer requirements
  • Exports were minimal due to reduced styrene monomer availability, increased freight rates, and longer voyage times

Expansion Projects:

  • Phase 2 expansion of EPS capacity successfully completed
  • New wide-width EPS board line with capacity of 150,000 cubic meters initiated
  • Compounding capacity expansion from 50,000 TPA to 80,000 TPA (commissioning by June 2027)
  • Board approved new 80,000 TPA polystyrene production line at Amdoshi complex, Maharashtra
  • New line will increase total installed polystyrene capacity from 300,000 TPA to 380,000 TPA
  • Total estimated investment: INR 450 crores funded through internal accruals
  • Overall CAPEX plan of approximately INR 900 crores for all expansions

Market Conditions:

  • Styrene monomer prices remained elevated during most of the quarter, softening briefly in late June
  • Temporary suspension of import duties on commodity polymers led to increased imports (~20,000 tons in quarter)
  • Non-OEM segment demand down approximately 50% due to price resistance and gas supply issues
  • OEM segment demand remained stable and good
  • Current styrene monomer landed price in India: ~USD 1,300 CFR
  • Current deltas: GPPS ~USD 250-275, HIPS ~USD 350

Additional Notes Section

  • The transcript was submitted pursuant to Regulation 30 of SEBI Listing Regulations
  • The document will be uploaded on the company website at www.supremepetrochem.com
  • The document includes the full Q&A session with analysts from various firms including Anvil Wealth, SMIFS Institutional Equities, Trinetra Asset Managers, 360 One Capital Market, Sumangal Investments, and individual investors