Supreme Petrochem Q2 FY27 Revenue Jumps 78% YoY

The document contains the transcript of an earnings conference call held on October 27, 2026, to discuss Q2 and H1 FY2026-27 financial results.
The call was scheduled after the earnings announcement, as referenced in the company's letter dated October 19, 2026.
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 was moderated by Ms. Purvangi Jain from Valorem Advisors, who represents the company's investor relations.
A standard cautionary statement was provided regarding forward-looking statements being subject to risks and uncertainties.

Q2 FY27 Standalone Performance: Operating income stood at ₹1,957 crores (vs. ₹1,100 crores YoY), EBITDA at ₹160 crores (8.12% margin), and PAT nearly doubled to ₹95 crores.
H1 FY27 Performance: Operating income reached ₹3,649 crores, EBITDA totaled ₹508 crores, and PAT grew to ₹331 crores (9.08% margin).
Volume Metrics: Q2 sales volume was 95,242 MT (up 24% YoY and 35% QoQ). H1 sales volume declined 3% YoY to 166,085 MT primarily due to lower exports.
Financial Position: Company remains debt-free with an investable surplus of ₹886 crores as of September 2026. All capex is funded through internal cash accruals.
Dividend: Board approved an interim dividend of 125% (₹2.5 per equity share).

Business environment was challenging with volatility in sterling prices, disturbed supply chain, elevated ocean freight rates, and subdued export volumes.
Duty-free imports of PS and ABS from ASEAN countries and China intensified competitive pressure during the first two months of Q2.
The company is diversifying sourcing network for imported raw materials to address supply uncertainties from the Gulf region.
Expansion plans remain on track: new wide-width insulation board line (150,000 cubic meters capacity) and compounding capacity expansion (50,000 to 80,000 tons per annum).
ABS utilization is at 85% of truncated capacity (65% of rated capacity) due to equipment issues.

Demand in October has been good, potentially due to festival season, but raw material prices remain volatile with styrene monomer landed price crossing $1,600.
Export recovery depends on normalization of raw material availability and freight rates, which are currently challenging due to volatility.
The company is targeting all applications for compounds, including auto components and batteries, with acceptability of ABS compounds being good.
ABS expansion timeline: 80,000 tons compounding by Q3 FY28; second ABS line ready by Q3 FY29.
Import trends: Spike in May-July due to duty exemption, but imports have normalized/lowered since withdrawal in July.
Market share: ~60% in polystyrene; EPS demand expected to be 165,000-170,000 tons in India for current year.
Spreads: GPPS/HIPS spreads around $200-250; ABS spreads around $300-350 after accounting for freight and costs.
Inventory increase (~50%) is mainly due to higher raw material prices (styrene from $900-950 to $1,650) and includes material in transit.

The transcript was submitted as a regulatory disclosure pursuant to Regulation 30 of SEBI Listing Regulations.
The document explicitly states that the purpose of the earnings call was purely to educate and bring awareness about the company's fundamental business and financial performance.
The document includes the full transcript of the earnings conference call with detailed management commentary and analyst Q&A.