Supreme Industries Q2 FY27: PAT +59% YoY to ₹262 Cr, OPM 12.8% trails 14-14.5% goal

Supreme Industries' consolidated revenue for Q2 FY27 (quarter ended September 30, 2026) came in at ₹3,361.27 Cr, up 40.4% year-on-year from ₹2,393.87 Cr and 23.7% sequentially from ₹2,717.66 Cr in Q1 FY27. Consolidated PAT rose 59.3% YoY to ₹262.44 Cr from ₹164.74 Cr a year ago, outpacing revenue growth and lifting net margin to 7.8% of total income from 6.8% in the year-ago quarter. Sequentially, however, PAT fell 6.5% from Q1 FY27's ₹280.72 Cr even as revenue grew strongly QoQ — a divergence driven by items below the operating line, not the core plastics business. The operating story is stronger than the headline PAT suggests: segment profit before interest and tax across all businesses rose to ₹318.14 Cr from ₹284.67 Cr in Q1 FY27 (+11.8% QoQ), led by Plastics Piping Products, whose segment revenue grew 41.9% YoY and 27.0% QoQ to ₹2,273.79 Cr while segment profit nearly doubled YoY to ₹240.95 Cr. Operating margin (EBITDA on operations, excluding other income) was 12.8% this quarter — up ~40 bps from 12.4% a year ago, but down from Q1 FY27's 14.6% and short of management's 14-14.5% FY27 guided range from the Q1 concall. The sequential PAT decline instead traces to the Group's share of profit from associate Supreme Petrochem Limited, which fell to ₹29.60 Cr from an unusually strong ₹73.05 Cr in Q1 FY27 — a normalization, not a deterioration in Supreme's own business. Standalone PAT of ₹279.25 Cr (+44.5% YoY) is actually higher than the consolidated figure this quarter because standalone other income includes the ₹46.30 Cr associate dividend that is eliminated on consolidation. Against the Street, our pre-result preview had flagged a PAT swing range of ₹200-250 Cr and margin holding at 14-14.5%; actual consolidated PAT of ₹262.44 Cr and revenue of ₹3,361 Cr both beat that range, but the 12.8% OPM missed the margin band — consistent with management's own cautious Q1-concall tone. A web search for Q2 FY27-specific consensus did not surface a clean, attributable estimate beyond our own preview; the only FY27 full-year commentary found (Nuvama, citing firm PVC price hikes and improving channel sentiment into H2) points the same direction as this print — revenue running ahead of plan on the piping segment. The quarter's other notable action: the Board declared an interim dividend of ₹12/share (600% of ₹2 face value), record date October 30, 2026, alongside continued balance-sheet strength — consolidated H1 FY27 operating cash flow reached ₹621.72 Cr versus ₹230.03 Cr in H1 FY26. Going into H2 FY27, the key open item is whether operating margin recovers toward the guided 14-14.5% band — H1 FY27 OPM stands at 13.6%, still trailing that target — and whether Supreme Petrochem's associate contribution stabilizes after two quarters of sharp swings (₹73.05 Cr in Q1, ₹29.60 Cr in Q2).