Supreme Petrochem Q1 profit jumps to ₹236 cr; board clears ₹325-cr expansion
Net profit surged to ₹236.3 cr from ₹80.9 cr, revenue up 24%. The board approved a ₹325 cr polystyrene line, funded internally, targeting March 2029 completion.
— 2 earlier stories on Supreme Petrochem Ltd. →What's new
- Q1 net profit more than doubles to ₹236.3 cr from ₹80.9 cr.
- Revenue up 24% to ₹1,694 cr on strong sales volumes.
- Board approves ₹325 cr new polystyrene line of 80,000 TPA, increasing total capacity by 27% to 3,80,000 TPA, funded via internal accruals, completion by March 2029.
Why this matters
The profit surge reflects strong demand from appliances and exports, and the expansion, funded entirely from internal accruals, shows management's confidence in sustaining that growth. The long timeline to 2029 limits near-term impact, but it provides clear medium-term volume visibility and strengthens the company's debt-free balance sheet case.
What we're watching
- Whether the 27% capacity addition comes online as planned by March 2029.
- How appliances sector demand evolves to absorb the new capacity.
- Export market opportunities that could support the expanded output.
The full read
Supreme Petrochem's Q1 numbers are strong: net profit more than doubled to ₹236.3 cr, revenue rose 24% to ₹1,694 cr. That's not the whole story. The board also approved a ₹325 cr new polystyrene line of 80,000 tonnes annual capacity, funded entirely from internal accruals. Completion is March 2029, almost three years out. So near-term earnings stay as is. But the move adds 27% to total capacity, taking it to 3,80,000 TPA. And it's a bet on sustained demand from appliances and exports. For a debt-free company trading at 42.6x trailing earnings, this is a signal of confidence, not urgency. The open question is whether demand materialises as projected.
Questions answered
- Why did Supreme Petrochem's Q1 profit surge?
- The profit jumped to ₹236.3 cr from ₹80.9 cr, driven by a 24% revenue increase to ₹1,694 cr, primarily from strong sales volumes in appliances and export markets.
- What is the scale of the new capacity relative to existing?
- The new 80,000 TPA line will increase total polystyrene capacity by 27% to 3,80,000 TPA, from the current 3,00,000 TPA.
- How will the expansion be funded?
- The entire ₹325 cr capital expenditure will be funded through internal accruals. The company has a debt-free balance sheet.
- When will the new capacity become operational?
- The project is expected to be completed by March 2029, so near-term earnings won't be affected.
- What are the key demand drivers for the new capacity?
- The company cited increasing demand from the appliances sector and export potential as primary growth drivers.
- Is Supreme Petrochem a leveraged company?
- No. The company operates with zero debt and a debt-to-equity ratio of 0.00, which enables it to fund the ₹325 cr expansion from internal accruals.
Story so far
All notes on SPLPETRO →- 27 Jul 2026 · 6:52 PM IST Supreme Petrochem Q1 profit jumps to ₹236 cr; board clears ₹325-cr expansion
- today Supreme Petrochem approves ₹325-cr expansion, capacity to hit 380k tonnes
- today Supreme Petrochem net profit surges to ₹236 cr, board clears ₹325-cr expansion