Supreme Petrochem Ltd (SPLPETRO) Q1 FY27 Results Analysis: Margin Expands 1,126 bps, Revenue Grows 22%

Supreme Petrochem Ltd reported Q1 FY27 numbers with revenue of Rs. 1,692.71 Cr (+22.08% YoY) and PAT growth of +192.05% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 22% YoY and operating margin expanded 1,126 bps to 19.53%, the highest in the data series. EPS Phase 2 is online and a new polystyrene capacity expansion was announced. Despite no explicit guidance beat, the results strongly outperformed pre-call expectations, demonstrating pricing power and cost management.

Key Investment Insights

Key Positives

• Revenue grew 22.08% YoY to Rs.1,692.71 Cr, the highest in at least five quarters.
• Operating EBITDA margin expanded 1,126 bps YoY to 19.53%.
• PAT grew 192% YoY to Rs.236.33 Cr; EPS doubled to Rs.12.57.
• EPS Phase 2 expansion commissioned on schedule (April 14, 2026).
• Raw material costs as % of revenue fell sharply from 85.34% to 74.72%.
• Pre-call expectations of margin compression were comprehensively contradicted.

Risk Factors

• Volume growth data for Q1 FY27 was not disclosed in the filing.
• Depreciation rose 51.98% YoY due to new capacity, reflecting ongoing capex cycle.