SPLPETRO - Supreme Petroch.

📊 NSE: SPLPETRO 🏢 Petrochemicals 📅 Last Updated: 12/14/2025 13:54

💰 Financial Performance

Revenue Growth by Segment

Operational revenue for H1-FY26 declined by 19.2% YoY to INR 2,486.7 Cr from INR 3,079.1 Cr. Q2-FY26 revenue fell 26.9% YoY to INR 1,100.2 Cr. The decline is primarily attributed to lower raw material prices (Styrene Monomer) which dropped from $1,150/MT to a range of $850-$950/MT. Segment-wise, PS and EPS accounted for 69% of FY24 revenue, while Specialty Polymers and XPS contributed 7%.

Geographic Revenue Split

Domestic sales of end-products accounted for over 70% of revenue in fiscal 2023. Exports of end-products contributed 6%, reaching customers in over 100 countries. Traded goods (primarily Styrene Monomer) accounted for the remaining 24% of revenue.

Profitability Margins

Net Profit Margin (PAT) stood at 5.19% for H1-FY26, a decline from 6.89% in H1-FY25. For the full year FY25, Net Profit Margin was 6.41% compared to 6.51% in FY24. Return on Average Net Worth was 18.38% in FY25, slightly up from 17.94% in FY24.

EBITDA Margin

Operating EBITDA margin for H1-FY26 was 7.73%, down from 9.30% in H1-FY25. Total EBITDA margin (including other income) was 8.69% for H1-FY26. Operating EBITDA for Q2-FY26 fell 38% YoY to INR 77.6 Cr, reflecting the normalization of spreads between raw materials and finished goods.

Capital Expenditure

Planned annual capital expenditure of INR 350-400 Cr for the period FY2025-2027. This is directed toward a new 140,000 MTPA ABS plant (Phase 1 of 70,000 MTPA commissioned in Q2-FY26), a greenfield project in Haryana, and capacity expansions in existing PS/EPS segments.

Credit Rating & Borrowing

CRISIL and India Ratings have assigned a 'CRISIL AA-/Positive' and 'IND AA-/Positive' rating respectively. Short-term ratings are 'A1+'. The company is debt-free, with borrowing costs effectively at 0% for long-term debt. Interest coverage ratio stood at 49.00x in FY25, down from 74.00x in FY24 due to lower absolute profits.

⚙️ Operational Drivers

Raw Materials

Styrene Monomer (SM) is the primary raw material, accounting for the bulk of input costs. Other materials include Polybutadiene Rubber (PBR) and Acrylonitrile for the new ABS production line.

Import Sources

Styrene Monomer is imported from the Middle East, Singapore, and East Asia due to deficient domestic supply in India.

Key Suppliers

Not disclosed in available documents, though the company maintains long-term relationships with multiple global suppliers in the Middle East and East Asia.

Capacity Expansion

Current installed capacity includes 300,000 MTPA for Polystyrene (PS) and 110,000 MTPA for Expandable Polystyrene (EPS). A new ABS plant with 70,000 MTPA (Phase 1) commenced production in Q2-FY26, with a total planned capacity of 140,000 MTPA.

Raw Material Costs

Raw material prices for Styrene fluctuated between $850-$950/MT in Q2-FY26 compared to $1,150/MT in the previous year. Because the company maintains 30-40 days of inventory, rapid price drops lead to inventory losses and margin compression.

Manufacturing Efficiency

Inventory turnover ratio improved to 8.79x in FY25 from 7.99x in FY24. Debtors turnover ratio improved to 15.23x from 13.83x, indicating higher operational efficiency in collections and stock movement.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

9-10%

Growth Strategy

Growth is driven by diversifying the product mix into high-margin Acrylonitrile Butadiene Styrene (ABS) with a 140,000 MTPA phased expansion. The company is also expanding its footprint with a greenfield project in Haryana and increasing the share of value-added products like Specialty Polymers & Compounds (SPC) and Extruded Polystyrene (XPS).

Products & Services

Polystyrene (PS), Expandable Polystyrene (EPS), Specialty Polymers and Compounds (SPC), Extruded Polystyrene (XPS) insulation boards, and Acrylonitrile Butadiene Styrene (ABS).

Brand Portfolio

Supreme Petrochem Limited (SPL).

New Products/Services

Acrylonitrile Butadiene Styrene (ABS) production commenced in Q2-FY26; it is expected to significantly diversify the revenue profile over the next 2-3 years as capacity ramps up to 140,000 MTPA.

Market Expansion

Targeting increased domestic penetration through the new Haryana plant to serve North Indian markets and expanding the export footprint which already covers 100+ countries.

Market Share & Ranking

Market leader in India with over 50% combined market share in the PS and EPS segments.

Strategic Alliances

Technical collaboration with ABB Lumus Crest (USA) for the Nagothane plant and M/S Versalis SPA for the new ABS plant technology.

🌍 External Factors

Industry Trends

The industry is seeing a normalization of the 'super-normal' spreads observed in FY2021-2022. Future growth is shifting toward engineering plastics like ABS, which are replacing traditional materials in automotive and appliance sectors.

Competitive Landscape

Primary competition comes from imports (Iran, Thailand, Singapore) and potential new domestic entrants in the EPS segment.

Competitive Moat

Sustainable moat derived from 50%+ market share and being the only major domestic producer after the second-largest competitor shut down in 2021. High entry barriers exist due to the capital-intensive nature of petrochemical plants and established global supply chains for Styrene.

Macro Economic Sensitivity

Highly sensitive to crude oil prices and global petrochemical demand-supply dynamics, which dictate the 'spread' between Styrene and PS.

Consumer Behavior

Increasing demand for energy-efficient construction is driving growth for XPS insulation boards, while the rise in consumer electronics and appliances drives ABS demand.

Geopolitical Risks

Geopolitical tensions in the Middle East could disrupt Styrene supply chains or increase freight costs, impacting the 24% of revenue derived from traded goods and the primary manufacturing feedstock.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental norms for petrochemical manufacturing and Bureau of Indian Standards (BIS) for polymer quality. Anti-dumping duties on imports are a critical regulatory support for domestic margins.

Environmental Compliance

The company is adopting Business Responsibility & Sustainability Reporting (BRSR) and ESG practices, though specific compliance costs were not disclosed.

Taxation Policy Impact

Effective tax rate is consistent with Indian corporate statutory rates; no specific fiscal incentives were highlighted.

Legal Contingencies

No material pending court cases or significant legal disputes were disclosed in the provided management reports.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility is the primary risk; a sustained decline in operating margins below 5-6% would trigger a credit rating review. Potential impact of 20-30% on quarterly EBITDA during sharp price corrections.

Geographic Concentration Risk

Manufacturing is concentrated in two states (Maharashtra and Tamil Nadu), making it vulnerable to regional disruptions like the Chennai floods of Dec 2025.