Supreme Industries Ltd Q2 FY26 Earnings Analysis

- Plastic piping system volume growth guidance raised to 15%-17% for FY26 due to robust demand in agriculture and housing segments. - Demand in agricultural pipes expected to be better than last year despite short-term softness in June. - Overall plastic pipe industry expected to grow around 9%-10% in FY26, with Supreme Industries growing faster than the industry. - Value-added products sales expected to improve over last year; Q1 sales were Rs. 933 crores out of Rs. 2,600 crores total turnover. - CPVC pipe segment expected to grow over 10% in volume. - Wavin acquisition adds capacity of 71,000 tons; 30,000 tons expected to be sold in current year, boosting volumes. - Industry goods and packaging division showing strong volume growth (~10%); packaging capacity fully utilized with strong demand. - Capacity utilization targeted at 65%-70% for FY26 with plans for further capacity expansion in subsequent years.

- The company targets a full-year EBITDA margin of 14.5% to 15.5% for the full Company. (Page 8, 22) - Value-added product sales are expected to improve over the previous year. (Page 22) - Plastic piping volume growth guidance has been raised from 12-14% to 15-17% for FY26. (Page 10, 11) - The company expects to grow 2-3% faster than overall industry and GDP growth in plastic pipes. (Page 20) - Capacity utilization is expected to rise from ~60% to around 65-70% by year-end, indicating better operational leverage. (Page 17) - Focus on increasing share of value-added products with better margins, and growth in housing segment anticipated. (Page 12, 21) - Renewable energy usage and cost-saving efforts expected to contribute to improved margins. (Page 16) - Wavin acquisition and capacity expansions (up to 1 million MT plastic pipes by March 2026) expected to support volume growth. (Page 22) Overall, the company is confident of improved earnings driven by volume growth, margin improvement, and operational efficiencies.

- The company plans to reach a plastic pipes capacity of 1 million metric tons per annum by March 2026, including Wavin's 70,000 tons capacity. (Page 22) - Wavin's capacity of 71,000 tons will be integrated starting 1st August, with about 30,000 tons expected to be sold this year; next year's plans to be discussed later. (Page 11) - OPVC pipe capacity includes two lines of about 500 tons per month currently with orders, targeting 32,000 metric tons by April 2028. (Page 11) - Continuous evaluation of renewable energy investments aiming to increase renewable energy share from 21.45% to over 30% this year, targeting 35% next year, though full 100% renewable dependency is constrained by regulations. (Page 16) - Expansion plans will continue as capacity utilization improves; capacity expansions to keep pace with market demand. (Page 17) No specific greenfield projects are explicitly confirmed; capacity expansions appear to be scaling existing operations and acquisitions like Wavin.

The transcript on page 23 and surrounding pages does not mention any current or future plans for fundraising through debt or equity. Key points regarding expansion and capacity are: - No activity on greenfield projects in Bihar and Jammu as of now. - Five new plants to be added this year (three from Wavin, one in Gwalior for material system, one in Kanpur Dehat for window profiles). - Land acquisition for a packaging unit near port is pending. - No explicit mention of raising funds via debt or equity in this conference. Therefore, based on the available information in the transcript, there is no indication or announcement about any current or planned fundraising through debt or equity.

- Regarding the composite cylinder segment, currently, the company has a capacity of one cylinder, which is not fully utilized yet. - The company has received a letter of acceptance from BPCL, but continuous order intake is necessary for any expansion; otherwise, opportunities are meaningless. - In the OPVC pipe segment, the company has two production lines with a capacity of around 500 tons per month and is receiving orders. - OPVC is a limited market mainly used as a replacement for ductile iron pipes in the size range 110 mm to 315 mm, primarily for state government or municipal water carrying. - New market opportunities in OPVC, like in Gujarat, are emerging despite some challenges such as slow fund flow. - The company expects JJM (Jal Jeevan Mission) related pending payments to be resolved soon, which would help in order inflows.