Supreme Petrochem's operating margin rises to 19.39% in Q1FY27
Revenue grew +22.30% year on year as expenses rose +7.51%, while margin also improved 3.49 percentage points sequentially.
Filed 27 Jul 2026, 18:20 IST · after market close · Supreme Petrochem Ltd (SPLPETRO)
Key takeaways
- Consolidated operating margin expanded 11.09 percentage points year on year to 19.39% in Q1FY27.
- Revenue grew +22.30% year on year while expenses rose +7.51%, but manufactured-product volume fell 24.5% to 70,842 MT.
- Net profit increased +189.54% year on year to Rs 237.57 cr, with other income contributing 5.47% of pre-tax profit.
Price around the results
Margin recovery continued despite lower manufactured volume
Consolidated revenue grew +22.30% year on year and +6.78% sequentially, while expenses rose only +7.51% year on year and +2.35% sequentially. That operating leverage lifted margin by 11.09 percentage points year on year and 3.49 percentage points from Q4FY26. Management said manufactured-product sales volume fell 24.5% year on year to 70,842 MT, while sharp price increases subdued demand from non-OEM customers.
Tax and other income supported profit, but did not drive the quarter
The tax rate declined 1.58 percentage points sequentially to 25.39%, while interest expense fell 16.15%; year on year, the tax rate was broadly unchanged, down 0.09 percentage points. Other income accounted for 5.47% of pre-tax profit, so the profit increase was mainly operating in nature rather than dependent on non-operating income. Net profit rose +40.82% sequentially and +189.54% year on year.
Operating margin is now above the reported commodities-peer median
Operating margin had fallen from 8.30% in Q1FY26 to 5.53% in Q3FY26, before recovering to 15.90% in Q4FY26 and 19.39% in Q1FY27. Supreme Petrochem's margin was 0.67 percentage points above the 18.72% median of 18 commodities peers that had reported the quarter. The latest result therefore extends a two-quarter recovery from the Q3FY26 trough.
Expansion advances while logistics and imports remain constraints
Management said the second phase of the EPS expansion was completed, while XPS capacity expansion to 122,000 cu meters and compounding expansion to 80,000 TPA were initiated. The company also said the Board approved an 80,000 TPA polystyrene line at Amdoshi, targeted for completion by March 2029, which management said would take installed polystyrene capacity to 380,000 TPA. Management said Gulf cargo stoppages, higher freight and shipping constraints suspended exports, while duty-free commodity-polymer imports reduced local producers' market share; it also said alternate supply arrangements were established for domestic customers.
Post-results reaction is not yet available
The consolidated results were filed after market close, so there is no post-results stock move to assess yet. Across eight previous results reactions, the stock rose twice and fell six times, with a median absolute move of 1.24%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,715 cr | ₹1,606 cr | +6.78% | +22.30% |
| Other income | ₹17 cr | ₹8 cr | +123.33% | +14.30% |
| Expenses | ₹1,382 cr | ₹1,350 cr | +2.35% | +7.51% |
| Operating profit | ₹332 cr | ₹255 cr | +30.21% | +185.59% |
| Operating margin (%) | 19.39% | 15.90% | — | — |
| Interest | ₹4 cr | ₹4 cr | -16.15% | +11.71% |
| Depreciation | ₹28 cr | ₹28 cr | +0.07% | +51.85% |
| Profit before tax | ₹318 cr | ₹231 cr | +37.84% | +189.19% |
| Tax | ₹81 cr | ₹62 cr | +29.75% | +188.17% |
| Net profit | ₹238 cr | ₹169 cr | +40.82% | +189.54% |
| EPS (₹) | ₹12.62 | ₹8.97 | +40.69% | +190.11% |
Operating margin of 19.39% compares with a Commodities sector median of 18.72% across 18 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Manufactured-product sales volume fell 24.5% year on year to 70,842 MT in Q1FY27.
Expansion
- The EPS second-phase expansion was completed, while XPS and compounding capacity expansions were initiated.
- The Board approved an 80,000 TPA polystyrene line at the Amdoshi complex, targeted for completion by March 2029.
- The approved polystyrene line will increase installed polystyrene capacity to 380,000 TPA when completed.
New initiatives
- The company established alternate supply arrangements to meet the total requirements of its domestic customers.
Problems & risks
- The closure of the Strait of Hormuz stopped liquid and container cargoes from the Gulf, and three regional styrene plants shut down.
- Exports were suspended because styrene was unavailable and freight rates, voyage times and shipping constraints increased.
- International styrene monomer prices remained elevated and increased again after hostilities in West Asia intensified.
- Sharp price increases caused subdued demand from the company’s non-OEM customers.
- Suspension of import duties on commodity polymers increased imports and reduced local producers’ market share.
What to watch
- Whether operating margin holds above 19.39% after the two-quarter recovery from 5.53% in Q3FY26.
- Whether manufactured-product volume improves from 70,842 MT after the 24.5% year-on-year decline.
- Progress on the initiated XPS and compounding expansions toward 122,000 cu meters and 80,000 TPA.