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Q3 FY2026 Financial Performance and Analyst Outlook
Supreme Industries reported its financial results for the third quarter of fiscal year 2026, with revenue from operations reaching ₹2,686.94 crore, a 7.05% increase compared to the same period last year. The company achieved a notable 12.9% year-on-year growth in sales volume, reaching 184,000 metric tons. Despite this top-line expansion, consolidated net profit experienced an 18.0% decline, falling to ₹153.37 crore from ₹186.97 crore in Q3 FY2025.
Following the announcement, Prabhudas Lilladher maintained its 'BUY' recommendation on Supreme Industries, while revising its price target downwards to ₹4,566 from ₹4,726, based on 40 times the estimated March 2028 earnings. The brokerage has also adjusted its earnings estimates for FY27E and FY28E by 2.5% and 3.4% respectively.
Operational Highlights and Future Guidance
EBITDA for the quarter stood at ₹3.3 billion (approximately ₹314 crore), with EBITDA margins remaining flat year-on-year at 12.3%. The company incurred an inventory loss of approximately ₹1-1.2 billion during the first nine months of FY26 due to fluctuations in PVC prices. Finance costs saw an increase in Q3 FY26 due to short-term borrowings used for capital expenditure, though the company anticipates being debt-free by the close of FY26, reflecting a strong balance sheet with minimal outstanding debt.
The management has reaffirmed its full-year FY26 guidance for overall volume growth between 12-14%, with the Plastic Pipe & Fittings (P&F) segment expected to grow between 15-17%. However, the EBITDA margin guidance for FY26 has been revised downwards to 13.5-14% from the previously guided 14.5-15%.
Sector Dynamics and Market Performance
The Indian plastic pipe industry is projected to experience robust growth of approximately 10-12% over the medium term (FY2026-FY2027), driven by government spending on infrastructure, and demand from real estate and agriculture sectors. While PVC price volatility has been a factor, stabilization is anticipated in the near term, with potential for modest upward movement due to firming producer prices and currency depreciation.
As of January 22, 2026, Supreme Industries shares were trading around ₹3,348.70 to ₹3,455.00. The stock's market capitalization is approximately ₹44,000 crore. The company's Price-to-Earnings (P/E) ratio is noted to be in a wide range, between approximately 46.5 and 58.5, reflecting a premium valuation. Trading volumes on the exchange were significant during the session. The stock has traded within a 52-week range of approximately ₹3,020 to ₹4,740.