Shares of Supreme Industries slipped 3.23% to ₹3,871.80 on Tuesday, October 28, after the company reported a 20% year-on-year decline in net profit for the September quarter (Q2 FY26) to ₹165 crore, compared to ₹207 crore in the same period last year.
The company’s revenue from operations rose 5% YoY to ₹2,273 crore, supported by an 8% volume growth in the first half of FY26. However, EBITDA fell 7% YoY to ₹297 crore, while margins narrowed 170 basis points to 12.4%, mainly due to higher raw material costs and limited pricing flexibility.
Following the results, CLSA maintained its ‘hold’ rating on the stock but cut its target price to ₹4,275 per share, citing weaker margins despite double-digit volume growth. The brokerage noted that while overall volumes grew 12% YoY — aided by the Wavin acquisition — organic growth was around 10%.
The management retained its EBITDA margin guidance at 14.5–15.5% and expects FY26 volume growth of 12–14%, banking on a recovery in agriculture and infrastructure demand during the second half.
In addition, the company’s board declared an interim dividend of ₹11 per share for FY26, with November 3, 2025, as the record date.
At the current market price, Supreme Industries commands a market capitalization of ₹5.08 lakh crore and trades at a P/E ratio of 55.14 with a dividend yield of 0.88%.
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