Supreme Petrochem Ltd (SPLPETRO) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Styrene monomer prices have surged to over $1,600/ton, creating significant margin pressure, though costs are eventually passed on with a lag.
- The new 150,000 cubic meter XPS insulation board line is expected to commence commercial production in Q1 FY28, with full ramp-up projected within 30 months.
- The compounding capacity expansion to 80,000 TPA is slated for completion by Q3 FY28 to support the growing ABS business.
Performance Overview
- Supreme Petrochem Ltd reported a significant year-on-year jump in operating income for Q2 FY27, driven by increased volumes and higher selling prices.
- Sales volumes registered a strong rebound, increasing 24% year-on-year and 35% quarter-on-quarter, despite lower export volumes in the first half of the year.
- The company successfully navigated a challenging environment marked by volatile styrene prices, supply chain disruptions, and elevated ocean freight costs.
- Expansion plans for compounding capacity and the new wide-width insulation board line are proceeding on schedule.
- The company maintains a strong balance sheet, remaining debt-free with an investable surplus of INR 886 crores, funding all capex through internal accruals.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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