Supreme Industries lifts profit on margin gains, but sequential momentum weakens
Year-on-year costs grew slower than revenue, but the operating margin fell 3.02 percentage points sequentially after the Q4FY26 peak.
Filed 28 Jul 2026, 12:58 IST · Supreme Industries Ltd (SUPREMEIND)
Key takeaways
- Consolidated net profit rose 38.76% year on year as revenue grew 4.16% and expenses increased only 1.28%.
- Operating margin improved 2.42 percentage points year on year but fell 3.02 percentage points sequentially as costs declined slower than revenue.
- Other income contributed 23.24% of pre-tax profit, while the 3.09-percentage-point fall in the tax rate also supported net profit growth.
Price around the results
Year-on-year profit growth outpaced revenue
Supreme Industries reported consolidated net profit growth of 38.76% year on year, well ahead of the 4.16% increase in revenue. Expenses rose only 1.28%, allowing operating profit to grow 24.80%. The comparison is less favourable sequentially: revenue fell 22.96% and operating profit declined 36.14% from Q4FY26.
Margin improved year on year but reversed after Q4
Operating margin expanded 2.42 percentage points year on year because expenses grew slower than revenue. Sequentially, expenses fell 20.13%, slower than the 22.96% revenue decline, narrowing margin by 3.02 percentage points. The margin path was 12.22% in Q1FY26, 12.42% in Q2FY26, 11.68% in Q3FY26, 17.66% in Q4FY26 and 14.64% in Q1FY27, so the latest reading is a pullback from the Q4 peak rather than a third straight quarterly decline.
Other income and tax rate aided reported profit
Other income accounted for 23.24% of pre-tax profit, making the reported profit increase less purely operational. The tax rate fell 3.09 percentage points year on year to support net profit growth, while interest expense increased 50.18%. Operating margin was 0.28 percentage points above the 14.36% median for the 21 Industrials peers that had reported.
Past result-day moves have been evenly split
The stock rose after four of its last eight results and fell after four, with a median absolute move of 2.64%. The historical range included moves of +4.15% and -4.67%, so past reactions have varied rather than showing a consistent direction. A current post-result move is not assessed here.
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 | ₹2,718 cr | ₹3,528 cr | -22.96% | +4.16% |
| Other income | ₹82 cr | ₹60 cr | +36.29% | +95.20% |
| Expenses | ₹2,320 cr | ₹2,905 cr | -20.13% | +1.28% |
| Operating profit | ₹398 cr | ₹623 cr | -36.14% | +24.80% |
| Operating margin (%) | 14.64% | 17.66% | — | — |
| Interest | ₹4 cr | ₹9 cr | -53.83% | +50.18% |
| Depreciation | ₹122 cr | ₹121 cr | +0.77% | +31.50% |
| Profit before tax | ₹354 cr | ₹553 cr | -36.05% | +33.36% |
| Tax | ₹73 cr | ₹119 cr | -38.96% | +15.97% |
| Net profit | ₹281 cr | ₹434 cr | -35.25% | +38.76% |
| EPS (₹) | ₹22.10 | ₹34.13 | -35.25% | +38.73% |
Operating margin of 14.64% compares with a Industrials sector median of 14.36% across 21 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above the Q1FY27 level of 14.64%.
- Whether expenses continue to grow slower than revenue, as they did year on year with growth of 1.28% versus 4.16%.
- Whether other income remains a material contributor to pre-tax profit after accounting for 23.24% in Q1FY27.