Did Supreme Industries Experience an 18% Decline in Q3 Net Profit?
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Synopsis
Supreme Industries has revealed a concerning 18% YoY decline in its net profit for Q3 FY26, sparking discussions on market conditions and capital expenditure plans. While revenue showed growth, the company faces challenges in profitability amid geopolitical tensions. Will this mark a turning point for the industry?
Key Takeaways
- 18% YoY decline in net profit reported.
- Revenue growth of 7% to Rs 2,687 crore.
- EBITDA increased by 1.5%.
- Capital expenditure plans of Rs 1,200 crore.
- Stock trading 0.4% higher at Rs 3,385.
Mumbai, Jan 21 (NationPress) Supreme Industries has disclosed an 18 percent year-on-year (YoY) drop in its consolidated net profit for the December quarter (Q3) of FY26.
The company's net profit decreased to Rs 153.4 crore in Q3 FY26, down from Rs 187 crore in the same quarter of the prior financial year (Q3 FY25), as revealed in its stock exchange announcement.
Despite this profit decline, revenue from operations increased by 7 percent, reaching Rs 2,687 crore during the quarter.
The earnings before interest, tax, depreciation, and amortization (EBITDA) were recorded at Rs 314 crore, showing a slight increase of 1.5 percent on a YoY basis.
However, the EBITDA margin contracted to 11.7 percent, down from 12.3 percent in the December quarter of the previous year, according to their filing.
Supreme Industries also provided an update regarding its capital expenditure plans, expecting a total cash outlay of approximately Rs 1,200 crore for the entire financial year.
Out of this, capital expenditure amounting to Rs 1,031 crore has already been utilized for existing and new projects, including the acquisition of Wavin.
The company confirmed that the entire capital expenditure will be financed through internal accruals.
In the stock market, shares of Supreme Industries rebounded from initial losses and turned positive.
The stock traded 0.4 percent higher at Rs 3,385. Nevertheless, shares remain down by approximately 14 percent over the last year.
“The growth of the global economy is hindered by geopolitical tensions in various regions, resulting in significant volatility in commodity prices,” stated M. P. Taparia, Managing Director of Supreme Industries Limited.
“This combination of factors has led to lower growth in the global economy in 2025. However, the company believes that this downward trend has now reversed,” Taparia asserted.
He also indicated that polymer prices might be entering an upward trend. “The polymer manufacturers have faced considerable challenges,” Taparia added.
Point of View
The decline in Supreme Industries' net profit raises concerns about the broader economic landscape and the challenges companies face amid geopolitical volatility. The revenue growth indicates resilience, yet the narrowing margins highlight the need for strategic adjustments. Our commitment is to keep our audience informed on these developments as they unfold.
NationPress
22/01/2026
Frequently Asked Questions
What caused the decline in Supreme Industries' net profit?
The decline in net profit is attributed to geopolitical tensions impacting the global economy and commodity price volatility.
What was the revenue for Supreme Industries in Q3 FY26?
In Q3 FY26, Supreme Industries reported a revenue of Rs 2,687 crore, marking a 7% increase.
What is the future outlook for Supreme Industries?
The company believes the downward trend in profitability may have reversed, and polymer prices could be on an upward trajectory.
