Supreme Industries Q1 FY27 Results Analysis: PAT Surges 39%, Margin Expands 242 bps (SUPREMEIND)

Supreme Industries Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 2,717.66 Cr (+4.16% YoY) and PAT growth of +38.76% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Supreme Industries reported a mixed Q1 with modest revenue growth of 4.16% YoY but strong margin expansion, as PVC duty exemption boosted EBITDA margins by 242 bps. PAT surged 38.76% YoY, aided by a tripling of associate income, though concerns remain over flat piping revenue, rising employee costs, and the expiry of the duty waiver in July. The industrial products segment showed a promising recovery, but the overall growth trajectory lacks a clear catalyst for sustained outperformance.

Key Investment Insights

Key Positives

• PAT grew 38.76% YoY to Rs. 280.72 Cr, with EBITDA margin expanding 242 bps to 14.64%.
• EBITDA grew 24.80% YoY to Rs. 397.95 Cr, outpacing revenue growth of 4.16%.
• Raw material cost ratio improved 298 bps YoY to 70.61% due to PVC duty exemption.
• Industrial Products segment reversed a decline, growing 23.76% YoY.
• Share of associate profit more than tripled to Rs. 73.05 Cr, contributing 26% of consolidated PAT.

Risk Factors

• Revenue growth was only 4.16% YoY, with the largest segment (Plastics Piping) flat YoY.
• Consumer Products revenue declined 11.21% YoY, with margin compression from 14.04% to 11.29%.
• Employee costs grew 21.10% YoY, outpacing revenue growth.
• Depreciation rose 31.50% YoY to Rs. 122.33 Cr, pressuring net margins.
• PVC duty waiver expired in July 2026, so Q2 margins may revert to prior levels.