Supreme Petrochem's FY26 net profit fell to ₹327.31 crore from ₹390.52 crore due to raw material price drops and lower demand. The company proposes a final dividend of ₹8 per share.

Supreme Petrochem Posts FY26 Profit Decline Amidst Headwinds

Net Profit ₹ 327.31 crore | Net Sales ₹ 5,338.40 crore

Reader Takeaway: Profitability squeezed by raw material costs and demand; growth initiatives in place.

What just happened

Supreme Petrochem Ltd reported a net profit of ₹ 327.31 crore for the fiscal year 2025-26, a decrease from ₹ 390.52 crore in the previous fiscal year. Net sales also saw a decline to ₹ 5,338.40 crore from ₹ 6,023.38 crore. Operating profit reduced to ₹ 558.05 crore from ₹ 605.78 crore.

Why this matters

The profit decline was attributed to a 17% drop in the price of its primary raw material, Styrene Monomer, and reduced demand from the cooling appliances sector. Despite these challenges, the company maintained a debt-free status and recommended a final dividend of ₹ 8 per share, bringing the total dividend for FY25-26 to ₹ 10.50 per share.

The backstory

In April 2025, Supreme Petrochem acquired an 80% stake in Xmold Polymers Pvt Ltd, a move aimed at bolstering its presence in the automotive and appliance sectors. The company also commissioned a new 70,000 MTA mABS project and a 20,000 TPA compounding unit in September 2025 at its Amdoshi complex.

What changes now

While a new mABS plant faced a temporary shutdown in December 2025 due to equipment malfunction, it has since restarted and is operating at 65% capacity. Management aims for 75-80% utilization in the current financial year. The acquisition of Xmold Polymers is expected to strengthen its market position in specific segments.

Risks to watch

The company highlighted geopolitical tensions, particularly the West Asia war, impacting logistics and supply chains. Increased competition from low-cost imports from Thailand, Taiwan, Iran, and China is pressuring margins and market share.

Peer comparison

While specific peer financial data for FY26 is not provided in the filing, Supreme Petrochem operates in the petrochemical and engineering plastics compound market, facing competition from domestic and international players, including those from Southeast Asia and the Middle East.

Context metrics (time-bound)

• FY 2025-26 Net Profit: ₹ 327.31 crore (down from ₹ 390.52 crore in FY 2024-25)
• FY 2025-26 Net Sales: ₹ 5,338.40 crore (down from ₹ 6,023.38 crore in FY 2024-25)
• Styrene Monomer Price: 17% annual average drop
• mABS Plant Utilization: Currently 65%, targeting 75-80%
• Total Dividend FY 2025-26: ₹ 10.50 per share (₹ 8 final, ₹ 2.50 interim)

What to track next

Investors will be watching the ramp-up in capacity utilization for the new mABS plant and the impact of the Xmold Polymers acquisition. Monitoring any changes in import duty policies and the company's ability to manage raw material price volatility and competitive pressures will be crucial.