Why did margins improve despite lower volumes?

Inventory losses from prior periods reversed, adding to profit. Operating margin rose to 17.3% from 13.1% even as volumes fell 14%.

Is the profit growth sustainable?

Partially. The reversal is one-off. Future growth depends on volume recovery and stable polymer prices.

How much cash does Supreme Industries have?

The company ended Q1 with a cash surplus of ₹542 crore and zero debt.

What is the outlook for PVC prices?

Management noted an abnormal decline in April but expects stability, supported by the Minimum Import Price on suspension-grade PVC resin.

Are there any new capacity plans?

Yes, the company is progressing plans for new manufacturing facilities in Bihar, Jammu, and Malanpur.

Earnings · Plastic Pipes · Large cap

Supreme Industries Q1 profit up 39% as margin widens

Operating margin hits 17.3% from 13.1% on inventory reversal. Volume sank 14% on PVC destock, but stable prices may spur restock.

— 1 earlier story on Supreme Industries Ltd. →

SUPREMEIND By Tipsheet Editorial 28 Jul 2026 · 1:12 PM IST Verify on BSE · NSE

Mkt cap₹43,467 cr

P/E45.56×

ROE15.46%

Debt / eq.0.00

Div yld1.01%

₹281 cr Q1 net profit, up 39% YoY

What's new

Q1 net profit rises 39% YoY to ₹281 cr on revenue of ₹2,727 cr.
Operating margin at 17.3% from 13.1% a year ago despite 14% volume drop.
Cash surplus at ₹542 cr; company progressing new plants in Bihar, Jammu, Malanpur.

Why this matters

The margin jump is almost entirely from reversing prior inventory losses on falling PVC prices. That is a one-off. Sustained margin improvement needs volume recovery, which management expects from stable polymer prices and the minimum import price on PVC resin. The ₹542 cr cash surplus and zero-debt balance sheet provide ample firepower.

What we're watching

Volume trajectory in Q2 — can destocking reverse?
Margins without the inventory reversal tailwind.
Execution of new plant plans across three states.

The full read

Supreme Industries reported consolidated net profit of ₹281 crore for Q1 FY27, up 39% from a year earlier. Revenue stood at ₹2,727 crore. The operating margin hit 17.3%, well above last year's 13.1%. But volumes fell 14%. The gain came from a reversal of inventory losses on falling PVC prices. A one-off. Management points to stable polymer prices and a minimum import price on PVC as drivers for restocking. The company sits on ₹542 crore in cash, debt-free. Three new plants are planned. The open question is whether volume can return to growth, or if the margin story rests on accounting reversals.

Questions answered

Why did margins improve despite lower volumes?: Inventory losses from prior periods reversed, adding to profit. Operating margin rose to 17.3% from 13.1% even as volumes fell 14%.
Is the profit growth sustainable?: Partially. The reversal is one-off. Future growth depends on volume recovery and stable polymer prices.
How much cash does Supreme Industries have?: The company ended Q1 with a cash surplus of ₹542 crore and zero debt.
What is the outlook for PVC prices?: Management noted an abnormal decline in April but expects stability, supported by the Minimum Import Price on suspension-grade PVC resin.
Are there any new capacity plans?: Yes, the company is progressing plans for new manufacturing facilities in Bihar, Jammu, and Malanpur.

Mentioned: Supreme Industries · ₹281 cr net profit · 17.3% margin

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on SUPREMEIND →

28 Jul 2026 · 1:12 PM IST Supreme Industries Q1 profit up 39% as margin widens
today Supreme Industries Q1 volume slump 14%; management keeps full-year target