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Supreme Industries Ltd

| Quarterly Financial Results Q3 FY 2025–26

NEUTRAL SENTIMENT

Report Source

⬤21st Jan 26

Summary : Supreme Industries reported mixed Q3 FY26 results with revenue growth but a decline in profit after tax, impacted by a new labour code provision.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed (Consolidated Q3 FY26): Rs. 1821.59 Crores.
  2. Employee benefits expenses (Consolidated Q3 FY26): Rs. 155.84 Crores.
  3. Finance costs (Consolidated Q3 FY26): Rs. 11.40 Crores.
  4. Depreciation and amortisation expense (Consolidated Q3 FY26): Rs. 109.51 Crores.
  5. Provision for incremental liability due to Labour Codes (Q3 FY26): Rs. 15.38 Crores.
  6. Total Revenue from Operations (Consolidated Q3 FY26): Rs. 2686.94 Crores.
  7. Plastics Piping Products Revenue (Consolidated Q3 FY26): Rs. 1823.18 Crores.
  8. Industrial Products Revenue (Consolidated Q3 FY26): Rs. 335.52 Crores.
  9. Packaging Products Revenue (Consolidated Q3 FY26): Rs. 390.29 Crores.
  10. Consumer Products Revenue (Consolidated Q3 FY26): Rs. 111.91 Crores.
  11. Other Income (Consolidated Q3 FY26): Rs. 3.77 Crores.
  12. Equity Share Capital: Rs. 25.41 Crores.
  13. Other Equity (as of March 31, 2025): Rs. 5635.03 Crores (Consolidated) and Rs. 4960.53 Crores (Standalone).
  14. Dividend received from Supreme Petrochem Limited (associate).
  15. Share of profit from Supreme Petrochem Limited (associate).
  16. Consolidated results include 100% subsidiary (Supreme Industries Overseas (FZE), UAE) and associate (Supreme Petrochem Limited, 30.78% equity).
  17. Standalone 'Other Income' includes dividend received from Supreme Petrochem Limited.
  18. Consolidated Profit After Tax (Q3 FY26): Rs. 153.37 Crores.
  19. Standalone Profit After Tax (Q3 FY26): Rs. 158.47 Crores.

Corporate Overview

  1. India (main operations)
  2. UAE (through 100% subsidiary, Supreme Industries Overseas (FZE))
  3. Recognition of a provision for incremental liability due to new Labour Codes.
  4. Dependent on Supreme Petrochem Limited (an associate company with 30.78% equity share capital) for dividend income and share of profit.
  5. Company is primarily engaged in the production of plastic products.
  6. Performance and resource allocation are based on analysis of various business segments.
  7. Factual and compliant with regulatory disclosure requirements.
  8. Plastics Piping Products
  9. Industrial Products
  10. Packaging Products
  11. Consumer Products
  12. Others

Risk Factors

  1. New Labour Codes provision impacts profitability.
  2. Auditor did not review foreign subsidiary.
  3. Auditor relied on other auditor's report.
  4. Increased finance costs impacted earnings.

Key Drivers

  1. Revenue from operations showed growth.
  2. Plastics Piping Products segment performed strongly.
  3. Packaging Products segment revenue increased.
  4. Associate company contributes to profits.

Auditor’s Report

  1. Limited Review Report; no audit opinion expressed.
  2. Conclusion: nothing came to attention suggesting material misstatement in the financial results.
  3. Review of the wholly-owned foreign subsidiary's financial statements (Supreme Industries Overseas (FZE)) was based on management certified statements.
  4. Review of the associate's financial results (Supreme Petrochem Limited) was based on another auditor's report furnished by management.

Board Commentary

  1. Uncertainty regarding the full impact of new Labour Codes on employee benefits liability.
  2. Government of India notified four Labour Codes on November 21, 2025.
  3. Company recognized a provision of Rs. 15.38 crores for incremental liability related to employee benefits for past periods.

Corporate Governance

  1. Audit Committee reviewed financial results before Board approval.
  2. Audit Committee is in place.

Management Discussion & Analysis

Future Strategy

  1. Re-evaluation of the impact of new Labour Codes upon notification of rules and further clarification.

Performance Drivers

  1. Growth in revenue from operations, particularly in Plastics Piping Products and Packaging Products segments.

Risk Control Measures

  1. Company plans to re-evaluate the impact of Labour Codes once rules and clarifications are notified.

Critical Risks

  1. Potential financial impact from the implementation of new Labour Codes.
Supreme Industries Ltd (SUPREMEIND) Quarterly Report Analysis & Insights | Dhanarthi