Supreme Petrochem Q1 profit more than doubles to ₹236 cr
EBITDA margin expands to 19.5% on favourable styrene-polystyrene spread and inventory gains; board clears 80,000-tonne capacity addition.
— 3 earlier stories on Supreme Petrochem Ltd. →What's new
- Net profit jumped to ₹236 cr from ₹81 cr YoY, driven by higher spreads and inventory gains.
- EBITDA margin expanded to 19.53% from 8.27% as higher styrene costs were passed through.
- Board approved an 80,000-tonne polystyrene line, lifting total capacity to 380,000 tonnes by March 2029.
Why this matters
The margin surge shows Supreme Petrochem's ability to benefit from supply disruptions in West Asia, but volumes fell 24.5% as exports were suspended. The capacity expansion signals confidence in long-term demand, but sustainability of margins post-disruption is the key question.
What we're watching
- How quickly non-OEM domestic demand recovers and exports resume.
- Whether margins can hold once styrene supply normalises.
- Execution timeline for the new 80,000-tonne line and any further capacity plans.
The full read
Supreme Petrochem's Q1 earnings delivered a powerful rebound. Net profit surged to ₹236 crore from ₹81 crore a year ago, and EBITDA margin jumped to 19.53% from 8.27%, driven by a favourable styrene-polystyrene spread and inventory windfalls as West Asia supply disruptions shut exports.
Yet volumes dropped 24.5% — exports were zero, and domestic demand from non-OEM buyers stayed weak. It won't.
The board approved an 80,000-tonne polystyrene line, lifting total capacity to 380,000 tonnes by March 2029. The company remains debt-free with ₹874 crore in investable surplus. This quarter shows what Supreme can earn when conditions align; the open question is how much of this margin is cyclical and how much sticks.
Questions answered
- What drove the sharp jump in profit and margin?
- A favourable delta between styrene and polystyrene prices, inventory gains from disruptions in West Asia, and the suspension of low-margin exports. The company passed through higher styrene costs to customers.
- Why did volumes decline despite higher profits?
- Manufactured volumes fell 24.5% to 70,842 tonnes due to subdued demand from non-OEM customers and zero exports during the Strait of Hormuz closure.
- What is the new capacity expansion and when will it be operational?
- The board approved an 80,000-tonne polystyrene line at its Maharashtra complex. Total polystyrene capacity will reach 380,000 tonnes by March 2029.
- Is the company carrying any debt?
- Supreme Petrochem remains debt-free with an investable surplus of ₹874 crore, giving it ample financial flexibility for future expansions.
- What were the revenue numbers for the quarter?
- Revenue rose 22.1% year-on-year to ₹1,693 crore, driven by higher realisations despite lower volumes.
Supreme Petrochem Ltd.
Latest quarter · Jun 2026
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All notes on SPLPETRO →- 27 Jul 2026 · 8:50 PM IST Supreme Petrochem Q1 profit more than doubles to ₹236 cr
- 1d ago Supreme Petrochem approves ₹325-cr expansion, capacity to hit 380k tonnes
- 1d ago Supreme Petrochem Q1 profit jumps to ₹236 cr; board clears ₹325-cr expansion
- 1d ago Supreme Petrochem net profit surges to ₹236 cr, board clears ₹325-cr expansion