Supreme Petrochem Ltd (SPLPETRO)
🎯 Key Takeaways
- Supreme Petrochem Ltd is in a strategic expansion phase within the petrochemicals sector, transitioning from operational stabilization to growth-oriented capital deployment. Management is actively scaling specialty product capacity to capture higher-margin opportunities, particularly in polystyrene and XPS insulation, while maintaining a debt-free balance sheet and strong profitability metrics.
- Revenue grew 6.8% QoQ to ₹1,715 in Q1FY27.
- ⚠️ 1) Execution risk in CAPEX projects without volume or margin guidance creates uncertainty in achieving targeted capacity and profitability. 2) Relianc
📖 The Story
Supreme Petrochem Ltd is in a strategic expansion phase within the petrochemicals sector, transitioning from operational stabilization to growth-oriented capital deployment. Management is actively scaling specialty product capacity to capture higher-margin opportunities, particularly in polystyrene and XPS insulation, while maintaining a debt-free balance sheet and strong profitability metrics. The company demonstrates consistent margin improvement and operational discipline, signaling a deliberate shift toward value-driven growth rather than volume-led expansion.
📰 What's Happening
In Q1 FY27, Supreme Petrochem delivered 22.1% YoY revenue growth to ₹16,927 crores, with PAT margin expanding to 13.96% from 5.83% a year ago, driven by EBITDA margin growth to 20.34%. The Board has approved a ₹900 crore CAPEX program targeting 80,000 TPA polystyrene, 80,000 tons EPS, and 150,000 m³ XPS capacity by 2027–2029, funded through internal accruals. This follows earlier announcements of capacity additions at Amdoshi Complex, with the first new line expected by December 2028. Management emphasizes export-focused specialty products to Europe to leverage pricing premiums, though volume guidance remains unspecified, creating execution uncertainty.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 1,118 | 1,281 | 1,606 | 1,715 |
| Operating Profit | 60 | 44 | 227 | 305 |
| OPM % | 5.4% | 3.4% | 14.2% | 17.8% |
| Net Profit | 48 | 31 | 169 | 238 |
| EPS | ₹2.57 | ₹1.63 | ₹8.97 | ₹12.62 |
The company's financial trajectory shows a sharp inflection: revenue surged from ₹1,118 crores in September 2025 to ₹1,715 crores by June 2026, accompanied by OPM expansion from 5.4% to 17.8% and NP growth from ₹48 crores to ₹238 crores. This reflects both scale benefits and improved operational efficiency, as highlighted in management commentary. Despite a 24.5% volume decline in Q1 FY27, revenue growth was sustained by global price differentials and specialty product mix, indicating pricing power. However, the lack of volume guidance and reliance on external pricing dynamics introduces volatility in future earnings visibility.
🔮 Management Outlook & What's Next
Management has outlined a multi-year CAPEX plan totaling ₹900 crores to scale specialty capacity, with specific milestones including EPS capacity of 80,000 tons by June 2027 and polystyrene line commissioning by December 2028. While no volume or margin guidance was provided, management cites 'specialized product pricing premiums' and export demand as margin drivers. The absence of quantitative volume targets or EPS contribution estimates suggests a focus on strategic positioning rather than near-term earnings predictability, with execution dependent on market conditions and supply chain stability.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2026 | Mar 2026 |
|---|---|---|
| Equity Capital | 38 | 38 |
| Reserves | 2,183 | 2,339 |
| Borrowings | 146 | 7 |
| Total Liabilities | 3,299 | 3,490 |
| Fixed Assets | 1,498 | 1,503 |
| Investments | 203 | 293 |
| Total Assets | 3,299 | 3,490 |
The balance sheet remains exceptionally strong, with zero debt (D/E of 0.00) and growing equity and reserves. As of March 2026, total assets stood at ₹3,490 crores with equity at ₹38 crores and reserves at ₹2,339 crores, supported by consistent internal accruals. The company maintains an AA-/Stable credit rating and holds ₹874 crores in investable surplus, enabling self-funded expansion without leverage. This financial flexibility supports its CAPEX roadmap while preserving capital discipline, though the modest equity base suggests limited room for large-scale acquisitions or downturns without external financing.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +247 |
| Investing | -190 |
| Financing | -228 |
| Net Cash Flow | -171 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 64.2% | 64.2% | 64.2% | 64.2% |
| FII | 3.7% | 3.7% | 3.7% | 3.8% |
| DII | 3.9% | 4.0% | 4.2% | 4.1% |
| Public | 21.9% | 21.8% | 21.6% | 21.6% |
| # Shareholders | 46,388 | 42,232 | 41,031 | 42,429 |
Institutional investor interest remains stable but modest, with FII holdings slightly increasing from 3.7% in Q2FY26 to 3.8% in Q1FY27, while DII rose from 3.88% to 4.14%. Promoter holding remains steady at 64.24% over the last five quarters, indicating confidence in long-term prospects. The growing number of public shareholders (42,429 in Q1FY27) suggests rising retail interest, though the low institutional allocation relative to peers may reflect limited visibility into growth execution or earnings visibility.
⚖️ Peer Comparison — Petrochemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| SPLPETRO | 13,709 | 28.3 | 28.2% | 20.4% | 0.00 |
| SOTL | 4,717 | 11.4 | 31.8% | 22.8% | 0.00 |
| STYRENIX | 3,534 | 12.9 | 21.7% | 20.0% | 0.23 |
| BEPL | 3,012 | 15.1 | 25.5% | 18.4% | 0.00 |
| PANAMAPET | 2,846 | 5.9 | 39.3% | 32.6% | 0.05 |
| MANALIPETC | 1,401 | 7.8 | 20.0% | 16.4% | 0.04 |
| DCW | 1,343 | 18.8 | 9.6% | 12.7% | 1.21 |
| TNPETRO | 1,084 | 7.6 | 20.4% | 15.6% | 0.13 |
| AGARIND | 685 | 16.8 | 7.3% | 6.5% | 0.68 |
| GOACARBON | 338 | — | -5.3% | -58.3% | 1.97 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Execution risk in CAPEX projects without volume or margin guidance creates uncertainty in achieving targeted capacity and profitability. 2) Reliance on global price differentials and export demand exposes margins to geopolitical and freight volatility, as flagged in management commentary. 3) Weak non-OEM demand contributing to 24.5% volume decline raises concerns about end-market recovery, particularly in construction-linked segments. 4) Styrene supply constraints could further pressure input costs and margins despite pricing power in specialty segments.
📋 Recent Filings
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🟡 Board Meeting 11 August 2026Supreme Petrochem Limited received an independent ESG rating from NSE Sustainability Ratings & Analytics Limited without prior engagement or agreement...
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🟡 Board Meeting 4 August 2026Supreme Petrochem reported 22% YoY revenue growth to **₹1,693 crores** and 188% YoY EBITDA growth to **₹331 crores** in Q1 FY27, driven by global pric...
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🟡 Board Meeting 1 August 2026Supreme Petrochem Limited announced an investor meeting schedule on August 11, 2026 at 4:00 p.m. with Takshil Financial Services Private Limited, cond...
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🟡 Board Meeting 30 July 2026Supreme Petrochem announced an investor meet on August 6, 2026 at 4:00 PM IST, inviting analysts to discuss operational updates without sharing unpubl...
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Announcement 27 July 2026Supreme Petrochem announced its Q1 FY26 unaudited financial results and approved a new polystyrene line adding 80,000 TPA capacity at Amdoshi Complex ...
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🟡 Board Meeting 27 July 2026Supreme Petrochem's board approved unaudited Q1 FY26 results showing revenue of ₹1,63,270.78 lakhs and profit after tax of ₹32,989.82 lakhs, while ann...
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🔴 Financial Results 27 July 2026Supreme Petrochem reported Q1 FY27 revenue of **₹16,927 crores**, up 22.1% YoY, with PAT margin expanding to 13.96% from 5.83% in Q1 FY26, driven by i...
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Announcement 23 July 2026Supreme Petrochem announced an earnings conference call scheduled for July 29, 2026 at 4:00 pm IST to discuss Q1-FY27 results, inviting analysts and i...
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🟡 Board Meeting 16 July 2026Supreme Petrochem Limited held its 37th Annual General Meeting on July 14, 2026 via video conference and audio visual means. All six proposed resoluti...
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🟡 Board Meeting 14 July 2026Supreme Petrochem held its 37th AGM on July 14, 2026 via video conference, with 82 shareholders participating. Shareholders voted remotely and via Ins...
🧠 Analyst's Read
Supreme Petrochem is transitioning into a growth phase with clear capital allocation priorities, but execution risk and lack of forward-looking volume guidance introduce uncertainty. Investors should monitor upcoming investor meetings for clarity on CAPEX timelines, margin sustainability, and demand trends in key export markets, particularly Europe, where pricing premiums are critical to the growth thesis.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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