SUPREMEIND — earnings call

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Prepared remarks

SUPREME INDUSTRIES LIMITED · Management

MR. R.

J.

SABOO – VICE PRESIDENT, CORPORATE AFFAIRS AND COMPANY SECRETARY – THE SUPREME

Moderator · Conference Operator

MRS. ANIFA FERNANDES – DAM CAPITAL ADVISORS LIMITED The Supreme Industries Limited July 28, 2026

Ladies and gentlemen, good day, and welcome to The Supreme Industries Q1 FY27 Earnings Conference Call hosted by DAM Capital Advisors Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mrs. Anifa Fernandes.

Thank you, and over to you, ma'am.

Anifa Fernandes

Thank you, Anusha.

Good evening, everyone, and welcome to Supreme Industries Q1 FY27

Questions and answers

CIN

L35920MH1942PLC003554 [identifier removed] +91 -022-6257 0000 / 6257 0025 [identifier removed] “The Supreme Industries Limited

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

We take the first question from the line of Keshav Lahoti from HDFC Securities.

Please proceed.

Keshav Lahoti

Hi.

Thank you for the opportunity.

Sir, as you indicated in the call, the underlying demand is broadly doing fine.

It was more about channel inventory impacting the volume growth.

Two, can you give more color about plumbing and agri?

Possibly agri season was also weak because of monsoon and fertilizer issues.

Secondly, what is the guidance for this year for the volume growth and margin?

M.P. Taparia

Agri growth was definitely affected in April-June, as in April prices dropped so steeply that farmers were very puzzled when to start buying.

Now the season April, May, June is over.

Now the next demand will start from middle of September and we believe that as the water reservoir The Supreme Industries Limited July 28, 2026 are filling up, the demand will be quite robust in the remaining part of the year in agricultural segment.

Keshav Lahoti

And sir, I have also asked what is the volume growth and margin guidance for this year?

M.P. Taparia

Volume growth we have told in the month of April only that we anticipate a volume growth of 15% to 17% in piping division and 12% to 13% overall for the company.

We maintain the same volume growth guidance.

Keshav Lahoti

So this guidance you still maintain this guidance for the entire year or the balance nine months you're talking?

The reason I'm asking is, the first three months has been pretty tough…

M.P. Taparia

We are talking for the whole year.

Keshav Lahoti

Understood.

Got it.

Thank you.

I'll come back in the queue.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Sneha from Nuvama.

Please proceed.

Sneha

Hi.

Good evening, sir, and thanks a lot for the opportunity.

Just a couple of questions from my end.

What would have been the industry-related decline in terms of quarter 1 volumes?

Just wanted to gauge if 15% is higher than the industry volume decline?

M.P. Taparia

The quarter maybe -- I think the whole country declined in plastic, all plastic had a de-growth because it was very uncertain, prices were dropping from the high price of the March month, the prices started getting corrected.

So the whole pipeline of the all the industry must have been gone into inventory correction mode.

Sneha

Understood.

But do we have any numbers here that it must be 8% drop or a 9% drop industry- wide?

That would be helpful in case we have that?

M.P. Taparia

No idea, no idea.

Nowadays import data also doesn't come easily.

So we have no idea.

Sneha

Secondly, just wanted to understand the impact of the recently imposed MIP.

Where are the PVC prices currently standing at and what are the inventory levels with the distributors?

And what sort of a reaction are you seeing after this MIP coming up, both in terms of PVC pricing as well as the restocking part?

M.P. Taparia

Inventory level must have gone down quite steeply in the first quarter as we are seeing demand is coming in a big way in this quarter.

So now they are filling up the inventory back.

To run the business they have to have adequate inventory.

Sneha

So you mean to say you are seeing restocking happening at this point of time?

And on PVC pricing, sir?

M.P. Taparia

PVC prices also gone up recently by INR9 a kilo.

The Supreme Industries Limited July 28, 2026

Sneha

So broadly on the margins front, we've seen a phenomenal jump in margins.

Could we say that there could be a part of inventory gains also in this particular quarter?

Have there been any inventory gain and if there is, can we quantify it?

M.P. Taparia

This quarter the profit has been higher because when we have such a big de-growth in demand, it was mostly in the agricultural piping segment where the margins are lower, only pipes.

So there was big erosion in volume and turnover in plastic pipe.

And plastic pipe is a low-margin business and because of that our overall margin is showing better in this first quarter.

Sneha

Understood, sir.

Sir, I'll get back in the queue.

Thanks.

All the best.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Shravan Shah from Dolat Capital.

Please proceed.

Shravan Shah

Hi.

Thank you, sir.

Sir, again coming back on the volume growth guidance front, two-three things to understand.

First, when we are saying that still we are maintaining 15%-17% piping volume growth for FY27, that means in the next three months we need to do at least 25% kind of a growth.

So in that sense, if you can help us, at least in July are we seeing that kind of a growth?

And broadly in Q2 how we can see it a growth and will it be the largely the growth would be in the second half where if the Q2 will not be that great, maybe the second half we need to do a maybe a 30% plus kind of a growth?

M.P. Taparia

I don't know, but we believe there will be good growth in second quarter also.

And July is only one month of the three months.

We are seeing excellent growth in the month of July and we believe the growth will be quite good in the second quarter, which you will know in the month of October.

Shravan Shah

Yes.

So, in this current month also we are seeing a significant growth.

So channel inventory is one can say again is filling up.

M.P. Taparia

They have to fill up, otherwise how can they do business?

Shravan Shah

Yes, true.

So that's what just wanted to understand from your side.

Secondly, in the Q1 this 15%- 16% de-growth, this is and across three months April, May, June or will it be more in April and May and June we would have seen a kind of a flattish growth broadly directionally will help?

M.P. Taparia

It was April only.

In May we had a small growth, July & June also had a small growth, but April was, it seems, reduced by more than 50%.

Shravan Shah

Okay.

Got it.

And for EBITDA margin that 14%-14.5% for FY27, that guidance we are maintaining?

M.P. Taparia

We are maintaining.

Thank you.

Shravan Shah

Yes.

And as you said this quarter there is no inventory gain in Q1?

The Supreme Industries Limited July 28, 2026

M.P. Taparia

When prices are dropping and how can there be inventory gain?

I don't follow.

Shravan Shah

Yes, so was there any loss because we have maintained the decent margin, that's what I'm asking.

M.P. Taparia

I have nothing to talk about inventory gain or loss, please.

Shravan Shah

Okay.

Got it.

And now do we see the current prices, the PVC prices which has increased INR9 per kg, given the crude also again have fallen, will the current prices will stay it is because for us it is becoming a very, very difficult in terms of modeling the numbers because both on the volume and prices the significant volatility is there.

That's what I'm trying to understand whether in Q2 can we see a Q-o-Q improvement in PVC prices or a realization for us?

M.P. Taparia

There is nothing difficult for us, nothing difficult.

And anyway, dear friend, PVC is not a 100% crude product.

47% is chlorine product, which is coming out of caustic soda production.

It's not 100% - crude product, please.

Shravan Shah

Okay.

And the guidance in terms of the capex for full year INR1,000-odd crores is we are maintaining that?

M.P. Taparia

We are maintaining, yes.

Shravan Shah

And in Q1 how much we would have done on the capex front?

M.P. Taparia

Committing the money depend on the machine arrival.

We've committed up till now INR500 crores.

Shravan Shah

Okay.

Q1, we have already done INR500-odd crores?

M.P. Taparia

Committed, committed, investment committed, Yes, please. .

Moderator · Conference Operator

We proceed with the next question from the line of Ritesh Shah from Investec Capital.

You may proceed.

Ritesh Shah

Yes.

Hi, sir.

Thanks for the opportunity.

Sir, two questions.

First question, sir, three parts.

Sir, can you speak more about gas piping, the progress that we have done?

Same thing for windows and doors business.

And third is basically Indo-Green plus three-layer PPR pipes.

How big this businesses can be?

Some color over here for these three segments.

That's the first question.

And sir, second question probably I'll take it afterwards after you answer this, please.

Thanks.

M.P. Taparia

I will reply first question only.

As on today based on the inquiry and planned by so many gas companies, we build a gas piping business including pipe and fitting may be around INR600 crores this year.

Ritesh Shah

Okay.

The Supreme Industries Limited July 28, 2026

Yes, sir, INR600 crores I heard that.

Big number.

Sir, on windows and door business and PPR pipes?

M.P. Taparia

Window we have already started.

We've started marketing.

Window business is around 1,50,000 ton in the whole country.

We just started only recently.

Our capacity only 5,000 ton per year.

Ritesh Shah

Okay.

M.P. Taparia

And PPR pipe is a regular business, there is nothing new.

Our company started in small way to supply the farmers.

They require our PPR pipe because we are very committed to quality, so they are very happy with our quality.

Ritesh Shah

Okay.

And sir, just a follow-up on INR600 crores number what you're indicating for gas piping, have you already started getting orders over here?

I think you had indicated we had some orders from Pune last year?

M.P. Taparia

We started getting orders, we supplied already.

Ritesh Shah

Sir, any orders from any other cities, states that you can detail?

M.P. Taparia

I told you, we have got the order of the gas pipe system, pipe and fitting both and we have supplied and customer are very happy.

Ritesh Shah

Okay.

Perfect.

Sir, my second question is there is a CAG report with respect to Jal Jeevan Mission out for two states.

This includes Maharashtra and Karnataka.

Sir, have you gone through it?

How should we look at the agri demand specifically which is coming out from the JJM scheme?

M.P. Taparia

I have not seen the report.

What is the report?

I have no idea.

Ritesh Shah

Okay.

No worries, sir.

Good.

Thank you so much.

M.P. Taparia

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Praneeth from SK Investments.

Please proceed.

Praneeth

Hi, sir.

Thank you for the opportunity.

Sir, I wanted to understand in terms of the window and profile that business, how much have we invested so far and what kind of revenues do we expect to generate in the next two to three years?

M.P. Taparia

We invested INR220 crores.

P.C. Somani

So revenue generation of about INR300 crores, INR350 crores once it is normal utilization.

Praneeth

Okay.

And do we expect to go in next two to three years or will it take longer, normal utilization?

The Supreme Industries Limited July 28, 2026

M.P. Taparia

We are going in production and we hope the next year we should get much better utilization of capacity.

We already started selling in the market.

Praneeth

Understood, sir.

So and regarding our piping division, sir, I understand this quarter has been a little bit off, but in terms of our CPVC growth, so do you see how are the growth prospects for this?

Continue to take share of the overall piping market or is there OPVC also taking over?

How is it right now?

P.C. Somani

CPVC are we increasing our market share?

M.P. Taparia

Yes, our market share must have gone up now.

I think so.

And OPVC also now getting good acceptance and we are getting another machine also for Eastern India.

Some machines are already running in South -- Western India.

So we are building more capacity also.

Praneeth

Understood, sir.

And one more thing regarding our pricing.

So far despite having a large brand and extreme presence, so in the market it's been known that like there's been a little bit price competitiveness to compete and gain market share.

So when are we going to start reducing this competitive intensity and aggressiveness in the market or do we plan on continuing for the next one to two years?

(R.J. Saboo) · Research Analyst

Actually the pricing of the product depends on the raw materials.

The price gets adjusted if the raw material prices goes up then finished good prices also goes up and correspondingly we reduce our prices when the raw material prices come down.

So it is in synergy with those raw material prices.

And that is a industrial -- industry phenomena, that is what we want to say.

Praneeth

No, sir, but like at least in the dealer network itself, you're being very aggressive with the pricing and despite having a large brand, you're still positioning your pricing as like let's say a little lower than what you can charge.

So in terms of that, I was trying to understand, do we expect to increase our prices compared like what we can or we just want to maintain at this levels for the next one to two years?

P.C. Somani

No, no, you see to get the better market, we are passing on the benefits what we are deriving from economy of scale or the proximity to the market.

This we have pan-India manufacturing presence, so our logistic cost gets rationalized and that is the benefit to the end customer.

Praneeth

Understood, sir.

But is there a possibility that we might just not pass it on and increase our margins for this or do we continue to want to pass it on?

P.C. Somani

That depends.

Right now we are more focused on the return on capital employed, not for the margin necessarily only.

And we still want to grow and we are growing.

Praneeth

Understood.

Got it, sir.

So for the next two years, probably we'll still continue to maintain our strategy with this, right?

M.P. Taparia

We are building a new system, new SKU in each system, so we'll get and receive more market and now going aggressively in export market also.

So we hope that we will go on growing nicely.

The Supreme Industries Limited July 28, 2026

Praneeth

Understood, sir.

That's it from my side.

Thank you for the answers.

M.P. Taparia

Okay.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Praveen Sahay from PL Capital.

Please proceed.

Praveen Sahay

Yes.

Hi, Sir, related to the capacity expansion, Bihar, Malanpur, and Jammu, what you are, you know, expanding.

So can you give the, you know, how much of the capacity addition in these three locations you are taking in?

M.P. Taparia

No, we will do complete the project in next two year, so we'll be building small capacity one after another.

So not a large capacity immediately to put up.

Overall capacity will come up in over a period two years.

We have to go on creating market further and go on putting capacity as the market demands.

A big piece of land in Bihar is 21 acre, in Jammu is 13 acre.

So hopefully in after two year it may be more than 50,000 ton in both the plant together.

Praveen Sahay

Okay.

And Malanpur, sir?

M.P. Taparia

Malanpur is material handling system, that is the -- material handling system is going for large volume.

We don't go by volume, we go what is required in that market accordingly we'll put the item because they are all bulky item, freight-intensive item.

So we'll be making variety of crate and variety of pallets.

Praveen Sahay

Okay.

And lastly on the Pondicherry and Erode also, the land acquisition you are looking for.

So what kind of a product you are going for there?

Piping system?

M.P. Taparia

Pondicherry we are going to shift our existing factory product which we are making for Whirlpool.

And in existing factory we are going to put more capacity to make furniture for export market.

Praveen Sahay

Okay.

Okay.

Got it, sir.

Thank you.

All the best.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Rahul Agarwal from Ikigai Asset.

Please proceed.

Rahul Agarwal

Yes.

Hi, sir.

Good evening.

Thank you for the opportunity.

Sir, one question I had was to understand the customer behavior.

I understand that the channel de-stocking happens when prices fall, but in history whenever such prices fall, you know, we have seen volume de-growth across all four segments.

Is this permanent sales lost or you think there is some pent-up demand which comes back, you know, whenever prices stabilize?

In history if you can just share your experience, sir?

P.C. Somani

When the prices start moving onwards, then the pent-up demands comes up.

That is naturally because the de-stocking which takes place in the channel, so obviously the channel get normalized when the prices get stabilized.

The Supreme Industries Limited July 28, 2026

Rahul Agarwal

So from the channel perspective I understand, but more so from, you know, let's say non-pipe, you know, packaging and industrial segments have also seen volume de-growth.

Does this demand also comes back fully into, you know, subsequent time?

P.C. Somani

So in packaging also you understand Rahul that because there are many applications for insulation, for civil, for construction, so those people may defer demand for a month or two or three.

So yes, in normal course most of the demand comes up.

M.P. Taparia

They are stock and sell item, they are stock and sell item.

Rahul Agarwal

Got it, sir.

And how does it work in industrial,

P.C. Somani

So industrial is the OEM supplies.

So it's all depends upon their end market's position.

M.P. Taparia

What the demand they are getting for their product, what they are offering, air conditioner, any item, whatever they are, how much is their sale, accordingly they buy.

P.C. Somani

And those are not governed by the raw material prices, you see, it is always cost-plus price margins.

So it's not because of the prices, the price effect, it is the ultimate demand situation.

Rahul Agarwal

Right.

So industrial volume de-growth this quarter is more organic, it's more that their business was not growing and hence we saw de-growth.

Is that correct?

P.C. Somani

Correct.

But value-wise if you look at, there is growth in value.

Rahul Agarwal

Yes, sir, I saw that, Yes.

And just last question on exports.

So could we talk about which products we're talking about for exports, which markets to start with, and should we see pickup in export growth starting current year itself or it is more longer term?

M.P. Taparia

No, now only a plan of six-seven year plan we have made.

Last year our export was USD26 million overall.

We are aiming to reach USD150 millions in six to seven year from USD26 million.

Rahul Agarwal

Got it, sir.

Which products we're talking about?

M.P. Taparia

All the product except industrial component.

Rahul Agarwal

And which markets?

M.P. Taparia

Market world market.

Rahul Agarwal

Any particular geography?

M.P. Taparia

Why mostly where the government is entering into FTA, those geography we want to cover.

Where government is entering into FTA and FTA is in place, those country are given top priority.

Rahul Agarwal

Yes, okay.

Sure, I'll join back.

Thank you.

The Supreme Industries Limited July 28, 2026

Moderator · Conference Operator

Thank you.

We take the next question from the line of Karan from Guardian Capital Partners.

Please proceed.

Karan

Yes.

Hi.

Thanks for the opportunity.

My first question is what is Supreme's current capacity and utilization level for composite cylinders?

P.C. Somani

Current capacity is about 9 lakh or 10 lakh depending upon the product mix per annum.

M. P. Taparia

10 lakh cylinder.

P.C. Somani

I am talking 9 lakh to 10 lakh cylinders per annum is the current capacity.

Utilization all depends upon the domestic oil marketing companies.

Currently it is between 25% to 35%.

Karan

Understood.

And my second question is with recently with HPCL's initiative of to sell composite cylinders on InstaMart and BPCL's plan to expand composite cylinder availability to over 100 cities, how do you see the performance of this business segment evolving for us?

P.C.Somani

Now there are good opportunities coming up.

I think HPCL has just completed one tender of 2 lakh pieces.

We have got the LOI for 60,000 pieces.

Supply will start from next month onwards.

And yes, this initiative is definitely very good and we look forward to the opportunities in this segment.

Karan

So do you see utilization ramping up quickly over in the near to medium term?

P.C. Somani

So unfortunately it is not a stock and sell item, so the time lost is always lost time because we have to manufacture cylinder as per the design, as per the serial number, many things as per the order.

It all depends upon how the order flows takes place from the domestic oil marketing companies.

Karan

Understood.

Thank you.

That's it from my side.

M.P. Taparia

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Disha Chamria from Trinetra Asset Managers.

Please proceed.

Disha Chamria

Yes, sure.

Yes, sir.

Most of my questions are already answered.

Just two questions from my side.

What is the current gross margin or EBITDA margin that you expect to stand for the FY27?

Is it going to continue at this this level or go back to the historical ranges?

M.P. Taparia

We anticipate between 14% to 14.5% for the full year.

Disha Chamria

Okay.

14% and 14.5%.

And for the FY28 and '29, do you see margin expansion like…

M.P. Taparia

We talk today FY27 only.

Disha Chamria

Okay, sir.

And my second question was the demand at the end market, like in the plumbing and agriculture, industrial, and newer segments like cylindrical composite and packaging, any The Supreme Industries Limited July 28, 2026 specific pockets of weakness or strength you have seen in this quarter or anything that you look forward to be performing well for the upcoming demand catering, sir?

P.C. Somani

generally we can say our all product segments are doing better and looking forward better demand situation.

Majorly the plastic piping system, which is the biggest business of the company, is looking for 15% to 17% volume growth for the full year in spite of the 15% de- growth in volume in the first quarter.

So definitely demand in that segment is looking much better.

Prices of raw materials are now stabilized or firming up.

So we will see a good situation coming up.

Disha Chamria

Okay, sir.

Thank you so much.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Tejas Pradhan from Citi Group.

Please proceed.

Tejas Pradhan

Yes.

Hi, sir.

Just on the quarter if you look at the EBITDA margin in the plastic piping segment on a Y-o-Y basis there is a substantial improvement, right?

So just wanted to understand you mentioned that there is no inventory gain.

So is this entirely because of mix or some cost benefit we had because of older PVC inventory or some other aspect that I am missing?

M.P. Taparia

As we told you there were less sale of pipe, only pipe sale was the volume destruction was mostly in pipe.

And pipe is a low-margin business.

As the pipe business was excluded, then the remaining margin became better.

Tejas Pradhan

Right.

So from a full-year perspective, you would expect the product mix to broadly remain the same, so the benefit that you have in terms of margin could sort of normalize over the full year?

M.P. Taparia

Yes, we already said it is going to be between 14% to 14.5%.

Tejas Pradhan

Okay.

Understood.

And secondly, could you share the inventory level at the company as of 30th June?

M.P. Taparia

Inventory level compared to our turnover is normally we keep two and a half month turnover level since we are handling very large volume of business.

So we have to keep always proper adequate inventory so that we are responsible supplier to our customer.

Tejas Pradhan

Understood.

And lastly on the MIP, that has come for a period of six months.

So from a longer- term basis, do you think this would be extended or some other form of protection could come in?

What would be your views on that?

M.P. Taparia

Extension part you can only take from the Government of India.

Tejas Pradhan

Okay.

Thanks.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Durgesh Shukla from InCred Capital.

Please proceed.

The Supreme Industries Limited July 28, 2026

Durgesh Shukla

Hello, sir.

Thank you for the opportunity.

I just want to ask what is the Wavin contribution in this quarter and what is the expectation for the full year?

P.C. Somani

Wavin capacity what we acquired of 70,000 metric ton, we are ramping up also and the plants are running fully integrated.

About 50% to 60% capacity utilization has taken place in the first quarter.

And overall company we look at piping capacity utilization about 70%.

So all the plants will be in same line.

M.P. Taparia

Wavin capacity 70,000 ton, so we will utilize for the year 70% of that.

Durgesh Shukla

So basically you are saying on the capacity of 70,000 ton, the utilization is 70%, right, sir?

M. P. Taparia

Yes.

Wavin is same similar to our capacity only.

Same product mix what we were making they are making.

Durgesh Shukla

Okay, sir.

Thank you.

That's all from my side.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Utkarsh from Anand Rathi.

Please proceed.

Utkarsh

Yes.

Hi.

Good evening, sir.

Sir, my first question is regarding on the pipe segment margin for the June quarter.

So if we see our pipe segment EBITDA margin has improved from 8.8% in previous June quarter to 11.4% in this June quarter.

So can you please help us understand why the margin has gone up when we have seen a sharp decline in our volume?

P.C.Somani

I think the same answer which has been given for the operating margin applies for the company.

When the low-margin product of pipe is reduced from the volume, so naturally the remainder business of the piping has better margins.

Utkarsh

Okay.

So is it because of sharp decline in the agri pipe volume we have seen a good improvement in the margin?

M.P. Taparia

Not only agri pipe, another pipe also.

Polymer prices have come down so there was huge de- stocking by our distributor.

Utkarsh

Fine, sir.

Sir, my second question is on your EBITDA margin guidance.

So like last year, sir, you were guiding EBITDA margin of 14.5% to 15.5% EBITDA margin, which was quite a difficult year for the industry as PVC resin prices were under significant pressure.

And this year we are guiding 14% to 14.5% for FY27, where if we see like we have already clocked 14.6% EBITDA margin in in this June quarter and margin in Q4 generally turns out to be significantly better for us compared to the first three quarters.

And we will also see the benefit of higher PVC resin prices in the coming quarters, which was not the case last year.

So can you please help us understand why we are guiding much lower margin compared to what we were guiding earlier?

The Supreme Industries Limited July 28, 2026

M.P. Taparia

We are not guiding lower margin.

The first quarter the margin has shown improvement because of destruction of demand for plastic pipe.

But we anticipate when we are saying that we anticipate 15% to 17% volume growth, so we will be supplying adequate quantity of plastic pipe now in remaining nine month.

They are low margin but they are required, otherwise if there is no pipe then what is the business of piping system?

You cannot do any business, you cannot do any work of the either for water or anything supply if there is no pipe you can't do any business.

Pipes are required.

Utkarsh Nopany

No, sir, your point is well taken, sir.

Earlier we were expecting, say, in FY2026, we were expecting the pipe volume to grow at 15%-20% rate, and we were still guiding EBITDA margin of 14.5%-15.5%.

What I’m trying to understand from you, why we are guiding 14%-14.5% EBITDA margin now, when we were expecting much higher range earlier?

M.P. Taparia

We are giving the guidance with a…

P. C. Somani

On a conservative basis.

M.P. Taparia

Responsible manner.

We don’t want to give unnecessary, very rosy picture.

No, we don’t want to give.

Utkarsh Nopany

Okay, thanks a lot, sir.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Shailly Jain from Dolat Capital.

Please proceed.

Shailly Jain

Hi, sir.

Thank you for the opportunity.

Could you please provide me the value of inventory, debtor, and payable as on June?

P. C. Somani

Inventory and debtor.

Shailly Jain

Inventory, debtor, and payable?

P. C. Somani

Our inventory remains two and a half months, as told in the earlier question.

Our debtors remain 15 days of receivers of the turnover.

Shailly Jain

Payable, sir?

P. C. Somani

Payable remains between 50-55 days.

Shailly Jain

Okay.

Okay, sir.

Thank you so much.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Nikunj Shah from Isec.

Please proceed.

Nikunj Shah

Yes.

Hi, sir.

Sir, how was the CPVC growth in Q1?

M.P. Taparia

Q1 there was very minimal growth.

The Supreme Industries Limited July 28, 2026

Nikunj Shah

Just so you’ve answered this question, I’m just trying to re-understand.

Was this the case that the plumbing pipe business was better off in Q1 and Agri grew significantly, which led to that 15% kind of volume degrowth in case of pipes, total?

M.P. Taparia

No. Total business, Agri and plumbing, both had a degrowth in the first quarter.

Nikunj Shah

Sir, Agri was significant degrowth, or was it similar, both were similar?

M.P. Taparia

Agri, plumbing business, every piping demand, every piping segment had a degrowth in the first quarter.

P. C. Somani

You are right.

Pipe, Agri pipe or polythene pipe was severe degrowth.

M.P. Taparia

Severe erosion in the volume in the polythene pipe was quite very heavy.

In PVC pipe also there was decrease in demand.

Nikunj Shah

Sir, yes.

This Agri pipe, whatever we lost out because of the pricing, you expect that recovery to come through when the season really picks up in September and February.

Am I correct, sir?

M.P. Taparia

From second half of September to March, demand will grow very nicely.

Nikunj Shah

Sir, with MIP coming in, that fluctuation in PVC, let’s assume PVC stays in the same range of INR80-INR85.

You think this is very good, demand will come from the agri side because of this.

Am I correct, sir?

M.P. Taparia

No, we don’t know.

Because MIP may give still nobody stopped them to increase the price further now.

MIP doesn’t mean that they cannot charge a high price.

The only thing they cannot charge lower than the $766.

Nikunj Shah

True, sir.

M.P. Taparia

High price, nobody will stop them.

It depends how West Asia come to the scale and nobody knows.

Nikunj Shah

Yes, sir.

Thank you very much, sir.

Thank you, sir.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Vipulkumar Anopchand Shah from Sumangal Investment.

Please proceed.

Vipulkumar Shah

Hi, sir.

What is our Agri and non-Agri mix, sir?

M.P. Taparia

We have no idea because several states they are using Agri pipe for housing also.

We have no idea.

Vipulkumar Shah

Okay.

Sir, secondly, since Lubrizol is starting production of CPVC resin in India, will our cost come down?

The Supreme Industries Limited July 28, 2026

M.P. Taparia

That part Lubrizol can only reply.

How can I reply?

Whether they are going to keep lower price, I can’t say.

For your information, Reliance is also coming.

Vipulkumar Shah

Okay.

Thank you, sir.

Moderator · Conference Operator

We take the next question from the line of Varun from 360 ONE Capital.

Please proceed.

Varun

Yes.

Hi, sir.

Thank you for the opportunity.

I just wanted to understand this realization improvement which happened in the other segment, packaging, industrial, consumer.

This entirely was due to the polymer price or was there any kind of price hike?

As far as we fully passed on the price hike because of the polymer or the cost inflation that we saw.

P.C. Somani

Yes.

It’s only a customized solution.

You see, packaging, we provide a lot of customized solutions, which gets better realization.

The industrial segment also, the pellets, dustbins are better value-added products.

It’s the product mix which plays the role.

Varun

Yes.

I just want to understand, after, say, this quarter, if things normalize and if the polymer prices fall back, are we going to stick to a similar price or will it move along with the polymer price only for the other segments?

I understand PVC still a lot of pass-through happens, but for other segments.

M.P. Taparia

We not only use PVC, we use another polymer also, dear friend.

We use large volume of polyethylene.

We also use polypropylene, polystyrene, ABS.

We use variety of raw material.

We are not PVC company only.

Varun

Yes, sir.

In case that declines again, that packaging, industrial, whatever pricing, that also will decline simultaneously.

That’s what I want to understand.

M.P. Taparia

Depend on the product.

Varun

No direct correlation, that’s what I’m guessing.

M.P. Taparia

Not so much direct.

Varun

Okay.

Okay, sir.

That’s it.

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Tejas Pradhan from Citigroup.

Please proceed.

I would request Mr. Tejas to unmute and then speak.

Tejas Pradhan

Sorry.

In terms of the other resins like CPVC, etcetera, was the pricing volatility and the quantum of restocking, destocking that we saw through last quarter and this quarter similar or a different sort of intensity?

M.P. Taparia

It happens in all the polymers.

Actually, polyethylene, polypropylene are much more volatile because the crude price is jumping up and down now, and they are directly linked to crude oil.

Only PVC is least affected.

PVC is not linked completely to crude oil.

Polyethylene, polypropylene have a much more volatility.

This is normal, they’re commodity polymers.

The Supreme Industries Limited July 28, 2026

Tejas Pradhan

Right.

On CPVC, I think you had mentioned there was minimal growth.

Were the CPVC prices a lot more stable through the quarter, because of which they did not see too much impact of the destocking?

M.P. Taparia

CPVC price is more or less stable now.

The PVC price was also more or less stable.

Only PVC price has come down in the month of April-May.

They have jumped in the month of March and corrected in April.

Thereafter, the prices are not moving at all too much.

After 20th April or something around there, thereafter, there is not too much variance in the price.

Too much in the month of March, and they got corrected in April.

Tejas Pradhan

Right.

Just lastly, obviously we lost volumes in the first quarter.

From a customer perspective, I know you had mentioned the recovery by September, but given that at least PVC prices are starting to increase and they are anyway slightly close to the MIP level, we might not expect further decline in PVC prices from here.

Would you expect the lost volumes to be recovered in the second quarter itself, or it will take time to recover it through the balance of this year?

M.P. Taparia

Lost volume will be recovered, and we will have growth in the first half.

Tejas Pradhan

In the first half, you would expect a year-on-year growth?

M.P. Taparia

First half, we are definitely confident that we will have growth.

Moderator · Conference Operator

We'll take the next question from the line of Roshan from Antique Stock Broking.

Roshan

Yes, thanks for the opportunity.

So, now with the minimum import price coming into effect, do you think the PVC prices should stabilize at these levels?

M.P. Taparia

Not sure now.

Nobody can stop them.

They can go up also.

The decline has stopped, but going up, there is no restriction.

They are allowed to move.

Roshan

And you have highlighted that FTAs with various countries are a significant opportunity.

So, what share of revenues do you expect to generate from exports over the medium-term?

M.P. Taparia

I can give an example of the UK.

The UK is a country that entered into an FTA.

The import duty on plastic pipes has now become zero.

So, there are opportunities like this in many countries where our government has entered into FTAs.

Roshan

What is the export opportunity you are looking at?

M.P. Taparia

Overall, the world import trade of plastic granules alone -- just one item -- was $41 billion last year.

Our company exported only $5 million.

In a $41 billion market, our exports are only $5 million, so we see a huge opportunity.

We will be spending money on participating in several exhibitions.

We have appointed several resources who will go to the market.

The Supreme Industries Limited July 28, 2026 We will introduce new products also required in markets and get our products certified in those prioritized markets.

We will make good investments to achieve this objective.

Not just to serve 1.5 billion people now; we want to serve 8 billion people globally.

Roshan

Okay.

That's helpful.

Thank you.

Moderator · Conference Operator

We'll take the next question from the line of Annu Parikh from Anand Rathi.

Annu Parikh

Also, can you please quantify the amount of inventory loss in Q1?

M.P. Taparia

Nothing to report.

Annu Parikh

And sir, is there a scope for inventory gain in Q2 because of the increase in PVC resin prices in the PVC resin price in July month?

M.P. Taparia

Nothing to report either on inventory gain or inventory loss.

If anything happens, we’ll be talking end of the year.

Moderator · Conference Operator

We'll take the next question from the line of Pratyush, an Individual Investor.

Pratyush

Thank you for the opportunity, sir.

I just wanted to ask about the channel inventory.

Like in March, April quarter, some of the companies had stated that there was a lot of restocking in one particular month, and then there was again a destocking.

Is that phenomenon still continuing or has the demand from channel partners been consistent?

M.P. Taparia

When we told you that we will have growth in this quarter, there is no destocking taking place.

We are saying we will have growth in this quarter.

We also say that in the first half, we will have growth.

In spite of degrowth in the first quarter, for the first half we will have growth.

Moderator · Conference Operator

We'll take the next question from the line of Karan Bhartelia from AMSEC.

Karan Bhatelia

How is Wavin portfolio doing?

M.P. Taparia

Wavin?

Wavin doing very well.

We got certain new item, which are not there in our portfolio.

We added those products in our portfolio, which are very helpful.

Karan Bhatelia

And we stick to our guidance is for selling 50,000 metric tons for FY27 with much better profitability?

P. C. Somani

Yes.

The quantum of volume that we have said is fine, with around 70% capacity utilization.

Karan Bhatelia

70% utilization, sir?

M.P. Taparia

Yes.

We anticipate 15% to 17% volume growth for the full year as of today in the plastic piping system.

Karan Bhatelia

And on the EBITDA margin front, how do we see it Wavin in the comparison with Supreme?

The Supreme Industries Limited July 28, 2026

M.P. Taparia

Same range.

Nothing very different range.

Karan Bhatelia

And any clarity on the packaging project, the one which we were eyeing for the export market?

M.P. Taparia

No, completely, fully sold out.

Moderator · Conference Operator

As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Over to you, sir.

M.P. Taparia

Thank you very much.

We are very impressed by the energetic questions raised by our investor friends.

We thank them very much for taking the time to raise questions, and we hope that we have adequately replied to them.

Thank you all.

Moderator · Conference Operator

Thank you.

On behalf of DAM Capital Advisors Limited, that concludes this conference.

Thank you for joining us, and you may now disconnect your lines.