Strong YoY growth masked by margin miss and guidance cuts

Delivered 24% volume, 42% value growth; first-half volume ~2% YoY

Q2 delivered 12.8% OPM; full-year target of 14-14.5% requires H2 margin recovery

Down from prior 12-13% guidance; Q2 piping 24% but overall constrained by consumer products -14%

Guidance changed from ₹1,000 Cr original plan; reduction of ~₹250-300 Cr

Packaging volume +3% vs value +22%, with margin decline; RM pass-through lagged by 10-15 days

FY27 piping guidance lowered from 15-17% to 13%; Q1 had 13.5% de-growth, tempering full-year outlook per MD. Explicit reduction in forward guidance.

Company-wide FY27 volume growth revised to ~10% from prior 12-13%; driven by piping slowdown and consumer products stress (-14% Q2 volume).

FY27 capex cash outflow guidance cut from ₹1,000 Cr to ₹700-750 Cr; new unit investments proceeding but at measured pace given margin pressure.

FY27 OPM guidance maintained at 14-14.5% despite Q2 miss at 12.8%; management relying on inventory gain release and pricing traction to bridge gap by year-end.

Consumer segment de-grew 14% volume in Q2 vs prior expectation of broad growth; polyethylene price volatility cited; segment characterized as under pressure, not growth driver.

No lower number to be announced; Q1 had 13.5% de-growth. At present, management confident in maintaining 13% for full-year piping.

Employees increased 9% plus wage growth of ~9%; new units not present last year. PVC price increases passed after 10-15 day lag; manage customer balance sheets carefully.

Increased price after 10-15 day gap to help distributor repair balance sheet. Increase took effect mid-October; expect recovery.

Raw material prices on higher side; pass-through delayed 10-15 days. Inventory gain in H1, full release by March 2027. Maintain 14-14.5% guidance for full year.

Majority is housing sector growth. Q2 strong; full-year growth guided at 13%. Also expect Nal Se Jal but limited given government fund allocation issues.

Outflow should not be more than ₹700-750 Cr (down from ₹1,000 Cr prior). Any further questions?

Industrial: customer-driven custom moulding. Consumer: polyethylene price too high, LPG diversion, local supply constrained. Nal Se Jal low outlook; government fund matching uncertain.

Yes, our market is growing while overall market shrinks; gaining share at expense of unorganized sector.

cPVC increases announced from tomorrow; 3-7% by product. Pass-through after 10-15 days.

FY27 revenue ₹13,500-14,000 Cr, OPM 14-14.5%. Revenue of Supreme Industries Limited.

Full-year consolidated revenue guidance. Implies ~35-40% YoY growth. H1 ₹6,079 Cr suggests H2 ₹7,421-7,921 Cr (₹3,710-3,960 Cr per quarter).

Maintained despite Q2 miss at 12.8%. Recovery relies on inventory gain release by March and RM price pass-through taking effect (currently 10-15 day lag).

Down from ₹1,000 Cr original plan. New units and brownfield expansions funded via internal accruals and cash flows. Reduced allocation given margin pressure.

PVC, polyethylene, polypropylene prices elevated. Pass-through to customers lags 10-15 days, creating margin volatility. Q2 OPM 12.8% vs 14-14.5% target reflects this.

Consumer products -14% volume Q2; polyethylene price volatility and government LPG diversion restrict supply. Small segment (~₹100 Cr estimated) but signals demand softness.

Nal Se Jal is piping demand driver; central government fund allocation unclear. State fund matching uncertain. MD explicitly cautious: 'not very optimistic of any big volume business in Nal Se Jal this year.'

Packaging value +22% but volume +3% Q2; raw material cost increases difficult to pass to customers (10-15 day lag). Margin hit visible in Q2 delivery.

H1 employee costs ₹330 Cr vs ₹168 Cr PY (+96%); headcount up 9%, wage inflation ~9%. Weights on OPM trajectory; new units not present in PY comparisons.