Supreme Industries grows revenue 40.41%, but Q2 margin slips sequentially
Costs grew faster than revenue QoQ, while other income made up 11.13% of pre-tax profit; the results were filed after market close.
Filed 26 Oct 2026, 18:24 IST · after market close · Supreme Industries Ltd (SUPREMEIND)
Key takeaways
- Consolidated revenue grew +40.41% YoY and operating margin widened 0.40 percentage points to 12.82% as expenses rose +39.77%.
- Sequentially, expenses grew +26.32% against revenue growth of +23.68%, cutting operating margin by 1.82 percentage points and net profit by 6.51%.
- The 12.82% operating margin was 1.79 percentage points above the 11.03% median for 27 Industrials peers that had reported.
Price around the results
YoY growth came with modest margin expansion
Consolidated revenue rose +40.41% YoY and operating profit increased +44.93%, as expenses grew slightly slower at +39.77%; this lifted operating margin by 0.40 percentage points. Profit before tax grew +58.03% and net profit +59.31%, helped by a -47.00% fall in interest costs. The 0.61-percentage-point reduction in the tax rate also provided a small lift to net profit.
Q2 margin reset from Q1
Revenue increased +23.68% sequentially, but expenses rose faster at +26.32%, narrowing operating margin by 1.82 percentage points. Operating profit still grew +8.31%, but profit before tax fell 2.75% as other income declined 53.41% and the tax rate rose 3.07 percentage points. Other income accounted for 11.13% of pre-tax profit, making it a material part of reported earnings quality.
Margin remains above the Industrials peer median
Supreme Industries' 12.82% operating margin was 1.79 percentage points above the 11.03% median across 27 Industrials peers that had reported the quarter. The trend is mixed: margin improved 0.40 percentage points YoY, but declined for a second consecutive quarter from 17.66% in Q4FY26 to 14.64% in Q1FY27 and then 12.82%.
Volume, MOHO and renewable investment in the presentation
The company reported Q2FY27 sales volume of 184455 MT. The presentation said Supreme Industries launched MOHO, a premium bath-fittings range, and reported renewable-energy investment of Rs 140 cr. Management also stated that the company has significant market share in each business vertical.
No post-results move after the after-close filing
The results were filed after market close, so there is no post-results market move to assess in this note. Across eight previous result reactions, the stock rose five times and fell three times, with a median absolute move of 2.39%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,361 cr | ₹2,718 cr | +23.68% | +40.41% |
| Other income | ₹38 cr | ₹82 cr | -53.41% | +25.91% |
| Expenses | ₹2,930 cr | ₹2,320 cr | +26.32% | +39.77% |
| Operating profit | ₹431 cr | ₹398 cr | +8.31% | +44.93% |
| Operating margin (%) | 12.82% | 14.64% | — | — |
| Interest | ₹3 cr | ₹4 cr | -25.72% | -47.00% |
| Depreciation | ₹122 cr | ₹122 cr | -0.02% | +17.20% |
| Profit before tax | ₹344 cr | ₹354 cr | -2.75% | +58.03% |
| Tax | ₹81 cr | ₹73 cr | +11.73% | +54.04% |
| Net profit | ₹262 cr | ₹281 cr | -6.51% | +59.31% |
| EPS (₹) | ₹20.66 | ₹22.10 | -6.52% | +59.29% |
Operating margin of 12.82% compares with a Industrials sector median of 11.03% across 27 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.49% | +1.50% |
Volume on the results session was 1.73× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 FY27 sales volume was 184455 MT.
New products
- The company launched MOHO, a premium bath-fittings product range.
New initiatives
- The company reports renewable-energy investment of Rs. 140 crore.
Competition
- The company states that it has significant market share in each business vertical.
What to watch
- Whether operating margin holds above 12.82% after two consecutive sequential declines.
- Whether expenses continue to grow more slowly than revenue, as they did YoY at +39.77% versus +40.41%.
- Whether other income remains near 11.13% of pre-tax profit.