Supreme Petrochem reports reduced income amid challenging market

Supreme Petrochem Limited's operating income for Q2 FY26 fell to INR 1,100 crores from INR 1,500 crores in the previous year, primarily due to lower raw material prices (styrene monomer at $850-$950 vs. $1,150). Total EBITDA for the quarter was INR 86 crores, with a net profit after tax of INR 48 crores.

For the first half of FY26, operating income reached INR 2,487 crores, with total EBITDA at INR 216 crores (8.69% margin) and a net profit after tax of INR 129 crores. Sales volumes for manufacturing products in H1 FY26 were 170,826 metric tons, down from 174,813 metric tons year-on-year.

The company attributes the volume and margin impact to an extended monsoon affecting demand for cooling devices, deferred purchases due to GST rate reduction intimations, subdued global economic activity, and shifts in trade flows from US tariffs. Styrene monomer prices declined from $940 per metric ton in June 2025 to $800 per metric ton, leading to destocking by processors. Despite these challenges, the ABS plant, with a 70,000 metric tons per annum capacity, has commenced production.

Supreme Petrochem remains debt-free, funding all capital expenditure through internal accruals. As of September 30, 2025, the company maintained an investible surplus of INR 522 crores, and the board recommended an interim dividend of 125% (INR 2.50 per equity share of INR 2 face value).