October 30, 2025

Supreme Industries, India's largest plastic products maker, saw its shares tumble after revising down its FY26 volume growth forecast. The company now expects volume growth of 12-14%, lowered from 14-15%. Why the dip? The first half of the year brought only a slow 8% growth with 1.5 lakh metric tonnes sold. The main troublemaker? The prolonged monsoon soaked more than just fields — it also drenched the demand for Supreme's plastic piping business. This segment, a key driver for the company, lost momentum as heavy rains disrupted construction and installation work. On top of this, slower government spending on infrastructure projects kept the overall demand sluggish. But the company hasn’t thrown in the towel yet! Management is hopeful for a comeback in the second half of FY26, especially from the plumbing and agriculture sectors. They also expect a steady rise in infrastructure activities that will boost demand. On the money front, Supreme Industries aims for an annual revenue between ₹11,000 crore and ₹11,500 crore with an operating margin of 14.5% to 15%. In the second quarter alone, revenue shot up 5% to ₹2,394 crore, with plastic piping revenue climbing 11% to ₹1,602 crore. Supreme is also beefing up its production muscle. By March 2026, its plastic piping capacity is set to cross 1 million tonnes, pushing total production to about 1.2 million tonnes. The company pumped ₹869 crore into capital expenses in the first half of the year, including ₹250 crore for acquiring Orbia Wavin’s plastic pipe business in India—a deal effective from August 1, 2025. The total planned investment is around ₹1,300 crore, all to be funded internally. Exciting projects are in the pipeline, with new units planned in Madhya Pradesh, Bihar, Jammu, and western Maharashtra covering plastic piping and protective packaging divisions. Market experts like IDBI Capital give Supreme a 'hold' rating with a target price of ₹4,146, noting the company’s strong capacity, wide network, and solid finances. Still, the stock price took a hit, closing at ₹3,848.5 on BSE recently. So, while the monsoon clouds have momentarily darkened Supreme Industries’ skies, the company is readying for a bright and bustling second half of FY26. Stay tuned as it takes on the challenges with a mix of smart investments and hopes for demand revival!

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Tags: Supreme industries, Plastic piping, Fy26 growth, Monsoon impact, Government spending, Capacity expansion,