Supreme Petrochem Ltd (NSE: SPLPETRO) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Rakesh Nayyar — Executive Director and Chief Financial Officer
Analysts:
Unidentified Participant
Purvangi Jain — Analyst
Presentation:
operator
It. Sa. Sa sa sa foreign. Ladies and gentlemen good day and welcome to the supreme petrochem limited q three and nine months fy twenty six earnings conference call as a reminder all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes should you need assistance during the conference call please signal an operator by pressing star then zero on your touchstone phone i now hand the conference over to miss purvangi jain from valorum advisors thank you and over to you ma’ am.
Purvangi Jain — Analyst
Good evening everyone and a very warm welcome to you all my name is parvangi jain from valorum advisors we represent the investor relations of supreme petrochem limited on behalf of the company i would like to thank you all for participating in the company’s earnings call for the third quarter and nine months of the financial year twenty twenty six before we begin let me mention a quick cautionary statement some of the statements made in today’s earnings call may be forward looking in nature such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated such statements are based on management belief as well as assumptions made by and information currently available to the management audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions the purpose of today’s earnings conference call is purely to educate and bring awareness about the company’s fundamental business and financial performance for the quarter under review now let me introduce you to the management participating with us in today’s earnings call we have with us mister rakesh nair executive director and cfo mister dilip deole chief executive officer finance and accounts and mister dn mishra company secretary without any delay i request mister rakesh nair to start with his opening remarks thank you and over to you sir.
Rakesh Nayyar — Executive Director and Chief Financial Officer
Thank you gurungit good evening everybody a pleasure to welcome you to the earnings conference call for the third quarter and nine months of the financial year twenty twenty six i’ll give a brief overview of the financial performance for the quarter ended the thirty first of december twenty fifth on a standalone basis the operating income for the third quarter was rupees twelve sixty five crores it was lower by ten percent year on year mainly on account of falling sm prices average published price of sm during third quarter of fy twenty five was about us dollar one thousand forty while the same dropped about us dollar eight hundred ten mt in october december twenty twenty five which resulted in fall in the revenues as well the operating ebitda stood at rupees sixty nine crores at a margin of around five point four seven percent the total ebitda including other income stood at rupees seventy eight crores with a total ebitda margin of six point one two crore the net profit after exceptional items and tax was rupees thirty crores for the nine months of the financial year twenty twenty six the operating income was rupees three thousand seven hundred fifty one crores the operating ebitda stood at r’s two hundred and sixty two crores with an operating ebitda margin of six point nine seven percent the total ebitda was rupees two hundred and ninety four crore with total ebitda margins of seven point seven seven crore percent the net profit after tax and the exceptional items stood at rupees one hundred fifty nine crores on the operational front the sales volume of the manufactured products stood at ninety one thousand two hundred sixty five mt in quarter three as eighty five thousand five hundred and thirty seven mp in portal three fy twenty five and for the nine month period volume stood at two sixty two thousand five hundred and thirty seven as compared to two sixty thousand four hundred and sixteen in the corresponding period of the previous year on the raw material front after witnessing a prolonged decline until november twenty twenty five starting modern world prices kind of stabilized and showed an upward bias the trend has encouraged processors to increase their offtake of styrenex products in december with regards to our capex project the abs plant with an installed capacity of seventy thousand mtpa was successfully commissioned and production started in september twenty twenty five sorry the abs plant operated satisfactorily however operations were suspended in december twenty twenty five due to malfunctioning of a critical production equipment necessary action is being taken in consultation with the engineering consultant equipment supplier and technical collaborator to restore the operations on the balance sheet side the company continues to remain debt free and all capital expenditure is being funded entirely through internal accruals as of the thirty first of december twenty twenty five we maintain an investable surplus of rupees four hundred sixty three crores with this i conclude my opening remarks we now open the floor for question and answer sessions thank you thank you.
Questions and Answers:
operator
Very much sir we will now begin the question and answer session anyone who wishes to ask a question may press star and one on their touchstone telephone if you wish to remove yourself from the question queue you may press star and two participants are requested to use handset while asking a question ladies and gentlemen we will wait for a moment while the question queue assembles the first question comes from the line of neera jimodia with anvil wealth please go ahead.
Unidentified Participant
Yes sir good afternoon and thanks for the opportunity sir few questions sir first is on the abs plant like we commissioned the plant in september and the equipment failure and the subsequent things happen in the month of december so in our overall sales volume what we have reported in q three is it possible to share the contribution of abs into those numbers a and b when can we again restart the plant and take the capacities to the optimum levels in terms of the production.
Rakesh Nayyar
The collaborators the engineering consultant and equipment suppliers they have already reached our site last week and they are evaluating all options so i really can’t tell you at what when and where it will start operations but only thing i can tell you at this stage is that the plant ran very smoothly and the commissioning and operations are very smooth when it was operating in the month of october and november but then this unfortunate incident happened and we had to shut down in december and it’s proprietary critical equipment we could not have opened it here also their arrival was delayed because of the christmas holidays and the new year holidays in europe and the visa issues and all that but now finally they are here and the work is on but we have no definite answer from the team yet that by when it can be.
Operated correct and sir any number in terms of the contribution. As far as segment wise numbers are concerned we never share and i won’t be able to.
Unidentified Participant
Share that number please correct correct sir you mentioned that the plant ran very smoothly so and we subsequently also commissioned our compounding line of abs in quarter three so yeah so have we got an opportunity to convert those abas into the compounds in q three and the.
Rakesh Nayyar
Volumes have been a part of converted we have converted the abs our abs into compounds and have also successfully marketed them also since our material of abs is very wide unlike the other one original emulsion grade material available in the market which is more of an ivory or a yellowish tinge so there were issues with regard to the originally the master batches the quantity of master batch the color matching those issues came because our material is absolutely white which needs less of pigments and others so that matching process took some time but now wherever that matching has happened the compound and not only of color compounds but as far as the other additive compounds are also going doing well there correct.
Unidentified Participant
So second question is on the demand for eps so how we have seen the demand for eps here in india for q three and nine months of fy twenty six also if you can share the market size of eps in india and your thoughts on the subsequent quarters how the demand of eps is panning out.
Rakesh Nayyar
In india eps is doing all right the first six months like any other because the oems lifting was less the demand was also slow there but then the in the current quarter the market picked up and our estimation is that in the current quarter the market picked up by almost as compared to the previous year by almost six percent or so the market grew as far as the demand is concerned the overall market size of eps in the country is around one hundred sixty thousand tons.
Unidentified Participant
Correct so third question and probably the last one sir how do you or let’s say if i rephrase it that way that sir from the polystyrene part are we working on any newer applications which could be potentially be termed as the value added grades in the either on the gp side or hi side your thoughts here and since we have been predominantly a polystyrene player and now we have added the abs capacities and since the paniped plant is far away are we planning any debottle taking for the existing ps capacities thank you so much.
Rakesh Nayyar
I would say that whatever is being discussed in house but that is still not officially cannot share that thoughts with you so i would give a pass to your question correct and.
Unidentified Participant
Sir any grades on which we are working so far as the polystyrene is.
Rakesh Nayyar
Concerned yeah there are grades on hips and gp also their grades are being developed but then unless and otherwise are fully developed and marketed successfully very futile to comment on that so i that’s why i said that unless it’s open out i can’t really comment on perfect.
Unidentified Participant
Perfect perfect thank you so much sir and i’ll join back in the queue.
operator
Thank you the next question comes from the line of salish raja with bnk.
Unidentified Participant
Securities please go ahead thanks for the opportunity sir it looks like you are unwell today hopefully hope you feel better soon so i have three questions to ask first is so excluding the abs capacity we have achieved eighty percent utilization level in three q and with the iocl styrene monomer plant facing commissioning delays so how is management thinking about sustaining growth in the near to medium term are there any plans for capacity expansion or debottle making to support volume growth in the interim phase.
Rakesh Nayyar
I just answered this to nirav also that we are discussing internally certain plants but it is too premature for me to say anything at this forum and you are right that our polystyrene plant operated at eighty percent in this quarter our eps plant also operated at almost eighty seven eighty eight percent so the last quarter particularly towards the end of the quarter after the starting prices kind of stabilized which were had a free fall for the last almost one year so we are fully appreciative of the fact that the going forward with this iocl styrene plant getting delayed our manipat plant will also get delayed and to the domestic demand we need to be working on these on some steps we have to take so we are working on that okay we have still a cushion of almost twenty percent fifteen percent there and we are also in the export market so to some extent we have cushion there also so in the near future we don’t see that there is that we will have any constraints as well as supply to the domestic market is concerned or meeting the domestic demand is concerned.
Unidentified Participant
Okay okay so what is our total exports volume in nine months.
Rakesh Nayyar
The total export volumes we don’t give the numbers separately we have been always giving volumes number only and but then the exports this year are better than the last.
Unidentified Participant
Year okay okay okay so now that size of the company it is a billion dollar market cap company and inventory level always we maintain it very lean at thirty forty days but if you see the quarterly performance there is a lot of volatility so unlike styrene product the compound business across peers appears relatively stable so what step that we are taking to reduce the earnings volatility and improve the predictability.
Rakesh Nayyar
The raw material volatility is there but then we have been also mitigating that volatility by keeping very lean stocks or the way we have negotiated our contracts with our suppliers so that we are affected not that we are fully insulated but then to some extent the impact is reduced it is efficient for us and as well as going forward with the abs product coming in abs compounds coming in so they are the other products which gets added to our portfolio and compounds business uniquely said provides a cushion there towards the volatility is concerned so our focus will be more on the avs compounds our own vbs available and the and the compounding facility to the extent we have we should be focusing on that okay.
Unidentified Participant
Okay so again same question about the abs side so how serious is the malfunction in the new manufacturing equipment does it entail any incremental capex or execution risk beyond what was originally estimated and also are these issues covered yeah the.
Rakesh Nayyar
Capital cost is not an issue here the capital because even if there is any damage these equipment are under warranty.
Unidentified Participant
Is there any insurance or performance warranty.
Rakesh Nayyar
Since the these are the proprietary equipment and we don’t have the drawings for it we cannot touch these equipment because otherwise the warranty will go away for us okay so the impact is certainly it’s a big setback for us in terms of the loss of production and the opportunity to penetrate the market for in this interim period okay okay okay but all efforts are being made so that we are able to commission the plant at the shortest period okay okay.
Unidentified Participant
That is great sir one last question has there been any transition in demand from suspension grade abs to mass abs grade in the market where versalis has set up plans before supreme like in china or middle east.
Rakesh Nayyar
With the the mass evs only being ten percent of the global capacity today still suspension so automatically and the demand is there for all aba so it all gets absorbed so it’s very difficult to say that some specific application shifted to mask unless otherwise a global application wise study has been done but which we don’t have.
Unidentified Participant
Any data about okay okay thank you sir all the rest.
operator
Thank you the next question comes from the line of aditya ketan with smifs institutional equities please.
Unidentified Participant
Go ahead yeah thank you sir for. The opportunity just a couple of questions the first one polystyrene when we said earlier like we used to mention like the average gross spread should were around one hundred and fifty two hundred dollar per ton so today sir where are they standing and what are the reasons like for the compression if we are witnessing sir second question is onto the mass abs so when we so we know like the technology is quite new in india and there are no players who have adopted this technology although sir not asking for timeline but in the near term how quickly can you start the plant considering all the issues can be resolved and similarly sir when we have i think sir so with this kind of a product abs the order book already would have been full like so before commissioning the plant only so what are we saying to our customers now like are we delaying the you can say the sampling of are we delaying the products sending to them.
Rakesh Nayyar
As far as our abs is concerned we did not take any advance order book as we wanted to use let everybody use it for the applications and the as i explained in earlier speaker’s case because it’s more whitish like any other polymer as compared to other suspension grade materials emulsion grade material so the master batch comparison and matching is an issue and this is like any other polymer there is no such advance order book for these products that’s one and as far as the startup date is concerned i really can’t comment on today but since the whole team of engineering consultants as well as the equipment supplier has already arrived they are at our plant they are opening the equipment looking at it unless we get a green signal some kind of a idea or a commitment from there i really can’t comment on it because whether they are going to just replace some part or they have to repair that part all that is not known to us at this stage and it is a massive equipment which they have opened up and they’re working on it so it’s very difficult for me to say as far as the margins are concerned yes globally also the starting prices when they were falling everyone want destocks they do not want to keep any material that is one that pulls down the demand and also the demand in europe and other countries was low on the lower side and the styrene prices which last year were closer to one thousand and fifty dollars or so in this quarter they averaged at almost eight hundred ten dollars and that was almost a fall of over twenty percent prices so that shrinks the market because in the falling market the demand automatically shrinks so these are the reasons for the p’s margins to shrink also and demand also has come down.
Unidentified Participant
Got it first six months of the.
Rakesh Nayyar
Year because of the early monsoons and the very pleasant weather continuing for long period the cooling devices demand was down the acs refrigerators coolers their demand was also down so the oem pickup in the first six months of the year was low now from december onwards the oem season starts and we have seen in the last two weeks of december that the pull from the oems is better now.
Unidentified Participant
Okay thank you sir for that explanation sir with the uncertainty around abs what sort of volume growth are we targeting for fy twenty seven and twenty eight.
Rakesh Nayyar
Fy twenty seven twenty eight i if i unless i know the our likely date of commissioning of abs to comment on that is very difficult and assuming that the it’s operational by the end of this current financial year then we should be logging in almost closer to ten percent or so should be our growth.
Unidentified Participant
Okay and so the contribution from the base business would be how much from this ten percent. The contribution from base business would be closer to three to four percent okay okay.
Rakesh Nayyar
So seven percent would be from abs if it started commission from this code okay one last question sir when we look at the import history of ps polystyrene in india sir in this calendar year cy two five so just gone by so there has been the highest import which has happened over the last ten fifteen year data when we look obviously the import is from china wherein.
Unidentified Participant
Large capacities now you’re talking about fy.
Rakesh Nayyar
Twenty five so cy twenty five calendar year twenty five december from jan to.
Unidentified Participant
December okay the import has been quite.
Rakesh Nayyar
High of polystyrene and a lot of imports are coming from china any idea like which are the large capacities which are expanding in china today imports from. China are not high the imports from thailand are high this year and also that the there is is though they all get cleared under this hs code one needs to go and segregate this data because there is a lot of the though it is called reprocessed or regranualed or polystyrene that gets imported which is used in applications where the prime grade polystyrene is not used like your wall panels etc or photo frames so the imports are happening there and now in india the wall panel business has picked up a lot the that material is getting more and more diverted to that place but there has been an increase you are very right there has been an increase in the calendar twenty twenty five particularly this is in the month of march april and may these would be three months when all of a sudden bulk of it came.
Unidentified Participant
Correct sir any supply chain which has happened like you see like lot of material which are coming low cost inputs any particular reasons i like added which have started which is gone a major part.
Rakesh Nayyar
Of is coming in as a recycled material or the grade b grade material which is getting used for the where the typically recycled material is used because there you don’t need the impact you don’t need the finish you don’t need any color issues and there are mainly there are photo frames and wall panels.
Unidentified Participant
Okay okay so these are having no competition with the refrigerators abs or the.
Rakesh Nayyar
Material which comes from thailand south korea taiwan they are the major source of singapore they are the ones from there what material comes that has a competition which has been there historically always now the whole material coming in from usa today that is all fully recycled material or the material which comes from even you will see if you look at the country wise data there you will see even material coming in from ghana and saliva and salvador and all that those volumes are essentially recycled material because they do not have capacities they have to produce polystyrene.
Unidentified Participant
Okay okay okay sir got it thank you sir that’s it.
operator
Thank you ladies and gentlemen if you wish to ask a question you may press star and one the next question comes from the line of rahul agarwal with ikigai acid please go ahead.
Unidentified Participant
Hi sir very good evening sir few questions and just to extend a bit on the earlier discussion if i have to you know really understand this performance over bit of medium term right i mean the quarter volatility keeps on happening but if i look at next two three years and you know your experience into this industry both in terms of volume growth pricing and margins typically at this current pricing of polystyrene and abs you know how should the indian market actually behave in terms of both customers and manufacturers in terms of how would they expect this to actually play out over a three year time frame so both from a demand supply perspective and from a manufacturer margin perspective cyclicality in this industry right now we’re seeing normalization of margins after covid has this happened in your view how do you see pricing moving further in india and outside india imports you know some comments over there on industry level and from an indian manufacturing level will help so that’s the first question.
Rakesh Nayyar
Rahul polystyrene is not separated or differentiated from other polymers the cyclicity which you see in the other polymers we get to see in this once in a while the demand as far as india is concerned will grow because of the thirst on the exports pli schemes and the efficiency level going up in india the indian oem appliance manufacturers be it air conditioners refrigerators washing machine guys or even the smaller appliances people all are out there to increase their capacity and new capacities are coming up in the electronics and electricals the demand for polystyrene is bound to grow there and we do not see that there will be any setback or there will be any issues with regard to the growth it is as far as we are concerned as i said earlier we currently we are operating at eighty percent of our capacity and though we have margins still but going forward we may have also to look at debottling our plant or increasing our capacity at our existing complex at andhushi now as far as the prices or margins are concerned much gets determined by the events happening globally also we are not separated or isolated from the world so if there is a price pressure the deltas global deltas go down that eventually gets reflected in the domestic market as well so i will only talk about the demand in india demand is bound to increase and it will increase there will be minor setbacks like last year we had first six months there were no lifting by the oems reduced lifting by the oems because of the extended monsoons and early monsoons so all those issues will come up but on a year on year basis the demand for polystyrene will grow.
Unidentified Participant
Right sir but as you said december obviously indicates that there is some stabilization on staging monomer pricing offtake is better purely from what we have seen last ten years current pricing looks like pretty much at low levels the inr depreciated significantly in january right so would that mean that incrementally if i take a next three year view do we think there is a bottom here or do you think incremental global supply can actually take this sterile monoprizer you know it’s still difficult to predict that there will be some marginal cost of production.
Rakesh Nayyar
Cost right for global monopolize styrene monomer again is not in place in isolation styrene monomer is also a combination of ethylene and benzene and the styrene produces can only withstand the fall in prices they are selling prices up to an extent if the fall is more they are losing money they are bound to shut down their units for one reason or the other reason and the prices will fall but then after a period they are bound to go up so there is a limit up to which the prices can fall and we think that with the current set of the benzene or ethylene and everything the prices had already fallen too much and that is why now they are witnessing some stability and may have a upward bias a bit but let’s hope this continues for a while.
Unidentified Participant
Get it sir secondly sir on abs you know on the import trends right abs is a larger quantity of import in the country we saw bis removals happening sometime in november december i don’t know why but there are a lot of polymers where bis was removed clearly it means that there is shortage and the country domestic capacity cannot meet demand in the country but have we seen higher chinese imports happening in abs maybe some comments on the quantity the country you mentioned something on the polystyrene side where we are seeing imports from thailand but anything on the abs side what kind of changes are expected globally in terms of supply demand how could that behave going forward the.
Rakesh Nayyar
Evs supplies to india are mainly from korea and taiwan and chinese exports to india have been negligible the bis getting removed certainly opens a window for china to start supplying to india but then there are other issues there because depending upon the location of the plant because if there are plants inland in china their local freight there and freight from china to india all those issues are there and their quality also so it’s it’s a difficult to say whether they will replace the korean demand or they will replace the sorry the korean supply to india or the taiwanese supplies to india but then as of now the chinese supplies to india as well as abs is concerned they are practically nil.
Unidentified Participant
And in history has it ever happened because i also did some channel checks looks like you know distributors have to say that the material is not very linear in supply sometimes they sell sometimes they don’t really have the material and second is you know as you said the matching of colors and quality with customers is a big headache right so ultimately it has to be more consistent supply of quality yes would i would i take a guess that abs from china actually will not really come it will continue with korea and taiwan which is good quality material and you know this abs pricing should stabilize here.
Rakesh Nayyar
People will prefer to continue with the existing suppliers but the trader mentality you never know and the people who are not conscious of their end product quality here they may source the material it is very difficult to say because the the it’s very dynamic situation so assuming yes the if the quantities come in i presume that their quantities if they come you come from china they will be minimal the main quantities will continue to come from taiwan and korea.
Unidentified Participant
Right and anything on the global demand supply of abs i mean this china korea pricing would that be suppressed for a while now or is it also pretty similar to what we are seeing in constitution.
Rakesh Nayyar
Again because of the global demand starting prices asean prices the butadiene prices the abs prices had also fallen considerably but with the sm price now getting stabilized butadine price going up so the abs price will also inch up now at least in the domestic indian market the prices have already increased.
Unidentified Participant
God it’s a perfect and sir last question on the trading value or volume whatever you want to share for the third quarter in.
Rakesh Nayyar
Nine months the our trading volumes are now close to twenty percent of our total turnover. This is for nine months or for the quarter as well as. Quarter.
Unidentified Participant
And how much was this yoy will there be a number for that.
Rakesh Nayyar
Last year they were in more they were i think closer to twenty two two hundred twenty two and a half percent or so but this year the trading volumes are around twenty percent.
Unidentified Participant
Perfect got it akhiji thank you so much for answering all the questions and wish you all the luck.
operator
Thank you the next question comes from the line of kirtan mehta with baroda pnp pariba please go ahead thank you so much for.
Unidentified Participant
The opportunity one question on the abs. Plant how many months of depreciation we have booked in the quarter and what could be the quarterly depreciation run rate from q four.
Rakesh Nayyar
We have booked the depreciation for the full quarter plant has run so we have is input to use so the depreciation has been booked for the full quarter whatever incremental depreciation you are seeing from the previous year is all for the abs as well as the our new spc lines. And. With this two hundred seventy million or will remain now the depreciation rate looking forward money in terms of of these.
Unidentified Participant
Yeah that’s right. Thank you so much.
Rakesh Nayyar
Whatever we capitalize going forward for any other project but as of now assuming the current capacities are and current plants are there so two hundred seventy million is depreciation per quarter will be there.
Unidentified Participant
Thank you second question was about there has been some clauses being talked about in korea as well as europe as.
Rakesh Nayyar
Plus there will be some chinese policy. Could get sort of announced during the china do we have any sort of understanding whether this will result in any closure of the capacities in our chemical. Chain. We have also read that we have been told about that but eventually the smaller plants what we consider is that once these are announced the smaller old plants which do not meet their new environment norms and pollution related norms they will close down and they because they are very concerned now in china with regard to the energy consumption and others but then how much of that will go away from the market is still not known once the policy is announced and we’ll get to know after three months four months that finally what has been the impact of that.
Unidentified Participant
Right would we have an idea about every utilization rate globally in our chain are.
Unidentified Participant
They significantly china is concerned there the average utilization rates are closer to fifty five fifty fifty five depending upon the products that’s what we are informed.
Rakesh Nayyar
Right sir thank you.
operator
Thank you the next question comes from the line of radha with bnk securities please go ahead hi.
Unidentified Participant
Sir thank you for the opportunity sir considering the improvement in offtake from oe since december and also improvement in signing prices do you believe that third quarter performance is the bottom and can we expect sequential improvement from here on.
Rakesh Nayyar
The next quarter that is the current quarter of january to march will certainly be better because the oem demand in this quarter is always the strongest and with the prices of styrene getting stabilized we hope yes we will certainly be doing much better than the last quarter.
Unidentified Participant
Secondly you have been trying to increase the export sales especially to european union when do you expect these numbers to start reflecting and what has been the changes in the supply chain in our key export markets like europe middle east africa in the last six months.
Rakesh Nayyar
The demand from europe been very erratic because there have been some segments some nations there were no demands coming up but they also have their local capacities there and the demand is low and also we hope that our demand will certainly pick up from india once the india eu fta is signed and if once that is done yes then europe will fully open for us and we will be able to compete with the other nations who have an fta agreement with eu but otherwise also the demand from europe was kind of dull in the last nine months.
Unidentified Participant
All right the last question what is the fixed cost per month of running the abs first line facility.
Rakesh Nayyar
I won’t be able to share that with you rather the only the depreciation is the fixed cost which is the major fixed cost for us and that incremental depreciation is there which is closer to eight crore rupees a quarter for us.
Unidentified Participant
Okay thanks and all the best.
operator
Thank you the next question is a follow up question it’s from the line of nirav jamodia with anvil weld please.
Unidentified Participant
Go ahead thanks for the opportunity again just two clarifications so one on the xmold side last time when we had a call you mentioned that the utilization rates were closer to around seventy nine percent for six months and seventy two percent for the second quarter so how it has been in q three and just a clarification on the compounding capacities i think my understanding suggests that combining us and xmol we are today at around sixty thousand tons of compounding capacity so if you can just help me.
Rakesh Nayyar
With that. As far as exmold is concerned they have been on trying to get new customers and the old customers who are not good paymasters or wanted extended credit lines and all that we have been kind of staying away from them now and i’m happy to tell you that two of the larger oem suppliers had sampled their product their required compounds and one of them they have been happy and one of them has already given the order simple orders have come in the other one is in the process of giving us the orders and the third large consumer of compounds is also coming now in the next few days they will also be coming in so it’s a transitionary period and we are confident that the exmold in the next financial year would be significantly increasing their utilization rate there the current from their current volumes they should be going up by almost twenty twenty five percent increase in their volumes in the coming year now got it sir and.
With respect to our capacities in terms of compounds like with the recent addition of the abs line when can we say that like or have a visibility into terms of going closer to the full utilization levels before we plan any. Capex there we are waiting for our abs now to start and once that happens and we’ll be able to more and more use our compounding lines then which we have set up correct thank.
Unidentified Participant
You so much sir and wish you all the best.
operator
Thank you the next question comes from the line of aditya ketan with smifs institutional equities please go.
Unidentified Participant
Ahead yeah thank you sir for the follow up so just a couple of questions sir any update on eps phase two expansion and sir what sort of maintenance capex we would be taking in fy twenty six and twenty seven and apart from like phase two abs and haryana any other new capex or new businesses like we have identified considering we are having a good amount of cash on the balance sheet.
Rakesh Nayyar
Your question was that how much capex we are going to incur in the coming years correct.
Unidentified Participant
Sir the maintenance capex and the growth.
Rakesh Nayyar
Capex both yeah so the we estimate that we will be doing around two hundred fifty to two hundred seventy five crores of capex in the coming year so that is our estimation and as far as any other location is concerned no we are only concentrating at chennai or amdoshi and whatever developments we do right now at the panipat these are the three locations and as soon as the eps phase two is concerned that should be going operational in the coming month in february or by march that should be operational.
Unidentified Participant
Okay okay so just one fundamental question sir on ebs is there any volumes which has been booked in this quarter everything has been converted.
Rakesh Nayyar
Into compound there is no booking of volume because the material is produced and sold it is we have various grades the orders come in they go but right now we are not taking any orders also because until otherwise we are satisfied the plant is up and ready after this mishap what has happened so no orders have been taken.
Unidentified Participant
Okay okay so so now the focus remains on the haryana project only and the phase.
Rakesh Nayyar
Two of abs yes that’s right.
Unidentified Participant
Okay thank you.
operator
Thank you the next question comes from the line of p venkatesh with corporate database india private limited please.
Unidentified Participant
Go ahead thank you for the opportunity. Sir just wanted to understand is are. We covered with for the loss of. Production of the abs plant secondly the. Proprietary manufacturers have they encountered any such problems in their earlier projects or is.
Rakesh Nayyar
This something which has uniquely happened in our project and thirdly can you please let us know how what is the. Progress on how has the xps segment. Fared till in the current year thank. You the arc collaborators or the equipment suppliers they’re also shocked because this is the first time they are encountering this kind of an incident they have never had any such incident in the past at any other location as far as insurance is concerned the plant is under warranty and is fully insured and xps is concerned yes xps demand during the rainy season and all that has been doing well we are currently operating our xps at around seventy seventy five percent utilization thank you.
operator
Thank you we have our next question it’s from the line of rahul agarwal from wikigai asset please.
Unidentified Participant
Go ahead yeah hi thank you for the follow up there’s just two basic questions on the mass abs side firstly i understand that abs is a credit market the channel needs kind of forty forty five day credit at least you know to monetize their own sales and then pay back to you historically obviously polystyrene has been very lean in terms of receivable cycle incrementally how would you deal with this situation in terms of you know the abs customer obviously need more credit so will be in line with the industry any thoughts on this in terms of how do we manage this.
Rakesh Nayyar
When we came into the polystyrene and eps market the credit periods are also very long it all depends upon the product supply the quality and the kind of discipline we want to follow and like i just said in for our exmold also the customers who wanted extended credits or they were defaulting in payments we have kind of said no to them now for future supplies that has of course reduced our volumes in the interim but we know going forward it will be good for us and here we will have to talk to the other players also to change the credit period pattern maybe but then i’m sure this can be curtailed from forty five days to thirty days or maybe lower numbers it’s not a very big issue there as far as the credit terms are concerned.
Unidentified Participant
Okay okay and secondly you know as we’ve been saying that as the customers test samples there are matching issues which come up ultimately it all gets sorted once the supply is on time and the mixing is done incrementally what you’re saying is domestic customers who are right now using abs either from imports or from existing suppliers will try and have some kind of five to ten percent mixing in the existing product purely to get more whiteness more glass and then that’s how this business will actually evolve over time is this understanding right or is it going to be new products no i don’t think.
Rakesh Nayyar
It will be getting mixed with that material maybe if they want to do compounding or something they can do it but then otherwise the master batches and other will be made for these grades which are being done now by many for certain colors because this eventually the master batch cost will come down for our material the pigments you need for this it’s white base so to color a white base is requires less of a pigment as compared to coloring an ivory color or a creamish color or a yellowish material so over time once the grades are developed this will become a preferred material then and the colors will eventually be the same the because they are the master batch would be used more or a different master batch and here it will be used a different master batch but eventually they will match the color there’ll be no mixing of the that they will mix ten percent of this with ninety percent of that that can be done in compounding business yes but not for on a regular basis i don’t think that’s my.
Unidentified Participant
Understanding right right so basically what we’re saying is whatever you know lakh fifty thousand tons kind of abs imported today will replace that market with you know our products once the customer is satisfied with the company or the master material mixing instruction right that’s right and then that material is comparable to the existing abs which is getting sold on a value added basis from other suppliers in india is that correct yeah that’s right okay okay thank you so much have a good evening thank you.
operator
Thank you as there are no further questions from the participants i now hand the conference over to the management for closing comments.
Rakesh Nayyar
Thank you all for participating in the earnings con call if you have any further questions or would like to know more about the company please reach out to our investor relations managers at vellaram advisors thank you so much thank you.
operator
Thank you on behalf of supreme petrochem limited that concludes this conference thank you for joining us and you may now disconnect your lines thank you.