The Supreme Industries Limited (NSE: SUPREMEIND) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
M. P. Taparia — Managing Director
Shri R. J. Saboo — Vice President, Corporate Affairs and Company Secretary
P. C. Somani — Chief Financial Officer
Analysts:
Aasim Bharde — Analyst
Shravan Shah
Praveen Sahay
Sneha Talreja
Pujan Shah
Sonali
Keshav Lahoti
Meet
S. Ramesh
Parikshit Gupta
Rahul Agarwal
Analyst
Shivkumar Prajapati
Arun
Puneet
Anchit
Karan Bhatelia
Presentation:
Operator
Ladies and gentlemen, good day and welcome to-Q1 FY ’26 Supreme India’s Earnings Conference Call hosted by DAM Capitive Advisors Limited. 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 assistant during the conference call, please signal an operator referencing star then zero on phone. Please note that this conference Is being recorded. I now hand the conference over to Mr Bardev from DAM Capital Advisors Limited. Thank you, and over to you, sir.
Aasim Bharde — Analyst
Thank you. Yeah, hi. Good evening to everyone who has dialed-in for Supreme Industries Q1 FY ’26 earnings call. As usual, we have with us the senior leadership team, who will discuss and talk about the quarter gone by. And after this, we can open it for all for questions. Thank you and over to you, Mr Taparia. Good evening. Thank you, Mr Ashya. Thank you very much. I am MP Taparia, Managing Director of the English Unit. I, along with my colleague, Somani, Chief Finance Officer; and RJ, Vice-President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the unaudited exchange alone and consolidated financial results for the quarter ended 30th June 2025.
The stand-alone results and the consolidated results are already with you, I’ll be brief on company product operating performance and other highlights. The company sold 1,83,792 tonne of plastic goods and achieved net product turnover of INR2,579 crores during first-quarter of the current year against sale of INR76,835 tons and net product turnover of INR2,612 crores in the corresponding quarter of previous year, achieving volume growth of around 6% and product value degrowth of about 1%.
The consolidated operating profit and profit-after-tax during the period under review amounted to INR344 crores and INR202 crores as compared to INR425 crores and INR273 crores during corresponding quarter of previous year, resulting decrease of 19% and 26% respectively.
The biggest scenario of all the product segment of the company for the quarter ended 38 June 2025 as compared to corresponding quarter of the previous year has been aged under plastic pipeline system business grew by 6% in volume and de-grew by 4% in value. Packaging product segment grew by 10% in volume and 9% in value trend. Industrial product segment business degrew by 2% in both volume and value trend, consumer product segment business grew 5% in volume and 1% in value trend. The overall turnover of value-added product increased to INR933 crores during the current quarter as compared to INR925 crores in the corresponding quarter of previous year.
Business outlook. Polymer prices remain in affordable range at lower level. PVC prices remain in downward range. This augurs well for growth in the business going-forward this year and beyond. In the first-quarter, plastic piping business was affected due to 20 days early breakup monsoon. This resulted in agriculture piping system business. Due to fall in price change in the quarter, also there were inventory loss affecting profitability in the quarter. Country witnessing good rainfall in most of the park which augurs well for the economy. Going-forward, the company expects good demand for housing and agriculture.
The inflation is also coming down. With government commitment to boost infrastructure spend, company believes demand for sector should also get. The company remains positive of initial volume growth with increase in value-added product turnover, both for the plastic division and for the company during current financial year.
The company entered into business transfer agreement with Industry Limited and its two wholly-owned subsidiary company that is India Pipeline Man Private Limited and India Holdings Private Limited collectively referred to as. The acquisition is going concern on a slump sale basis is likely to be completed by 31 July, subject to fulfillment of and condition precision provided for a respective business transfer agreement has mutually aggregate between parties. The aggregate consideration for the entire transaction, including for net working capital is about INR310 crore, net working chemical is subject to final adjustment as on. The company is also entering into versus license agreement with Netherland and OBR Group company to access on basis for India and other countries are its additional technology and other new technology to develop during the period of seven years pertaining to plastic piping system for building an infrastructure segment.
The same against 25. Going-forward, this acquisition and nation arrangement would the business of the plastic division to a new scale in terms of capacities, market reach and product offering. Capacity expansion at various locations for prustic pricing business and packaging product are positioned smoothly.
Company has planned to set-up a new unit for material handlings product as its newly-acquired land at unit to expand its footprint in Central India. Work from the in-hand enhanced short lists. As equipment for PPA silent system and technical collaboration with Plus of have been installed and gas production is underway, commercial production is actually commence next month.
The company has successfully executed its first order for pipe for gas application. Company also has the prestigious JV, GW certification for the electrofusion feeding from Germany for the youth and telling water and gas. This gives the company credential to get qualified to participate in tender for guests by and and fueling supply. With product and certification, Supreme is the only company eligible to produce and supply both pipes and for gas. The company continues to invest and enlarge the product basket in our distribution and to remain focused on increasing the range of value-added product.
Construction market size for profile window project is an advanced-stage of completion, equipment is started to arrive at the site. The company expects to commence production during second-quarter of the current year. Initial focus of the company is to launch the product in UP, NCI region and thereafter the company will plan for more geographical reach within India with setting up a fabrication facility in other part of the country. The company expect cash outflow of about INR1,350 crores towards existing capital commitment, acquisition of our business and new commitment during the year, entire capex shall be funded from internal accruals. All other product divisions are sharing well and company in which are moderate growth during the year.
The product division is especially driving its growth plan by increasing its product range and offering for customized solution, the same leading policy results and paving the way for achieving double-digit volume growth and revenue target to exceed INR1,000 crores for the year from INR855 crore in the previous year. The company issued a letter of acceptance for supply of 2 lakh number of KG composite LP cylinder to Bio Petroleum Corporation Limited and he also received a liquid order of INR231,000 of composite LP from Indian Oil Corporation, which will enable the company to improve utilization of
M. P. Taparia — Managing Director
Expanded capacity of the composite division to a reasonable level. This is a very brief and overall summary for the quarter ended under reference.
Thank you for your patience. Now I and my colleague Somani and MC RJ Sabhu are available to reply to various queries by all of you. Thank you very much. Thank you very much.
Questions and Answers:
Operator
We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Shravan Shah from Dolat Capital. Please go-ahead.
Shravan Shah
Thank you, sir. Sir, the first question is on the volume front. So sir, in the AGMV sale for two months April and May, our piping volume has grown by 11-odd percent, but now the volume number is just 6-odd percent, that means in June, we have kind of a degrowth by close to a 3.74-odd percent. So wanted to understand two aspects. First is for this quarter at an industry level, how do you see what kind of a growth was there? And in terms of our guidance, last-time we have talked about 10% to 12% kind of piping and overall volume growth. So what’s the new revised guidance?
M. P. Taparia
For that. So in the June, the business of pipe was accepted due to take monsoon. June was the approval of the monthly pipe business and it MR.
Operator
Yeah, now it’s better, sir. It’s from the participant line sorry.
M. P. Taparia
Okay.
Operator
Now hello? Yes, sir. Go-ahead.
M. P. Taparia
So now after expiring, we are going to acquire from first of August this year. Now we revised our guidelines upward. We anticipate that our plastic pipe business volume will grow between 15% to 17% this year, though it has grown 6% in first-quarter.
Shravan Shah
And for overall volume or growth, how do we see for full-year/
M. P. Taparia
Revenue for the company
Shravan Shah
Yeah? Yeah. All the segments put together.
Shri R. J. Saboo
Yeah, between 40% to 15% should be.
Shravan Shah
We are doing it. Okay. So here, sir, just wanted to clarify for Wavin, last-time we said that we are looking at close to 51,000 kind of a volume. So that number remains intact. So if that is the?
M. P. Taparia
Right now we will be having operation only for eight months yeah, sir. So how much volume from Wavin are we looking at? We hope that in the eight months we may get 30,000
Shravan Shah
Okay. So then why on what basis are we so confident that the — in the remaining Nine-Month period, the volume will pick-up significantly given that the ADD has still not came NBI has been postponed to December?
M. P. Taparia
So that’s new. Last year, they were destocking at a very severe level. Now we are very confident.
Shravan Shah
Okay, so broadly, we are, we are now looking at kind of 18%, 20% kind of a growth for nine months-to achieve a, 15% kind of a growth.
M. P. Taparia
I share the number 15% to 17%, you can get for your nine months.
Shravan Shah
Got it, got it. And second on the margin front, so this quarter obviously was on the lower side, close to 12% EBITDA margin.
M. P. Taparia
How is our margin of the company will be around — probably 14.5% to 15.5%.
Shravan Shah
Okay. Okay, got it. And what was the inventory loss in the Q1, sir?
M. P. Taparia
Very difficult to quantify.
Shravan Shah
Okay, okay. Got it. That’s it from my side and all the best.
Operator
Thank you thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference, please limit your question to two-question per participant. Do you have follow-up question, we request you to rejoin the queue. Thank you. The next question is from the line of Praveen Saha from PM Capital. Please go-ahead.
Praveen Sahay
Yeah. Hi, sir. Thank you for opportunity. So first question is related to the company expecting a cash outflow of INR1,30 cro INR50 odd crores and I suppose it’s a INR310 crore often also included in that. So how much of the capacity expansions in the different vertical you are expecting with the INR1,000 odd crore of this capex in this year?
M. P. Taparia
Major expansion will coming in plastic division. Plastic mid division will reach 1 million ton by March 2026 and a new capacity of 5,000 ton of window making villas have come we are expanding capacity in material handling division in divisions but major expansion will be plastic division.
Praveen Sahay
What level of plastic pipe capacity do we have right now?
Shri R. J. Saboo
Our capacity at the beginning of the year was 870,000.
Praveen Sahay
Yeah. So in the quarter, we have not added anything, right?
M. P. Taparia
No. Something is going on. I think every month actually. We told you end-of-the year is March million ton.
Praveen Sahay
Got it, sir. Sir, my second question is related to your commentary on the first order of a PV for a gas application. Can you quantify how is the size and also the opportunity for the rest of the year? Thank you.
M. P. Taparia
And now we are qualified. So now we will give you participate in a tender because we have been successfully participated. The market of gas pipe industry is around 700,000 ton. And we are participating agent today only from plant in Western India. So been gambling whether to put up in other location also. So very difficult to give you any idea how much we will get, but we are already great to inform that we have successfully participated to supply pipe and from one source, which is very Indian market where we supply pipe and also and gets huge.
Praveen Sahay
Okay. Got it, sir. Just a clarification, what you said of 14.5% to 15.5% EBITDA margin, that is for a full-company level or that is you expecting for a plastic side? Company? Thank you, sir, and all the best.
Operator
Thank you. The next question is from the line of Neha Talveja from Nuvama Wealth Management. Please go-ahead.
Sneha Talreja
Good evening, sir, and thanks a lot for the opportunity. Just a couple of questions from my end. You have mentioned that there is an inventory loss in this particular quarter. Can you quantify the same?
M. P. Taparia
Very difficult to quantify. As you’ve seen the margin, mostly due to the inventory loss in our stock of finished goods supply and also in the raw materials what we have committed with the world market has fallen in this particular quarter.
Sneha Talreja
Okay. Understood. Sir, secondly, on the Argent front with coming in, could we understand the margin trajectory for us or margins will be similar to us, will it be better because of the product mix or because of their operating overhead thing on the higher side, it will be more in the initial time. Some sense.
M. P. Taparia
Currently they what we are able to produce are similar to what we are producing. When we any new technology, then only when we the technology, we announced to all our partners that This is new product group we are adding built on technology. That benefit may properly only from the beginning of next year. As on today, the asset what we purchase are making similar to what we are already making. It only increased the volume.
Sneha Talreja
Understood, sir. But on the margin guidance front, I think you’ve maintained your margins from 14.5% to 15.5% while I understand the upgrade in the volume guidance is because of. Your margin improvement from the current levels will only be because of discontinuation of inventory loss or any other reasons to add?
M. P. Taparia
Margin, you told you 14.5% to 15.5% for the company
Sneha Talreja
And we expect that improvement coming in from which all areas because currently the margins are much lower.
M. P. Taparia
Why by region, we lost money in due to inventory lost now. It also will be improving and we are increasing our business of value-added product. And last year — in the first-quarter, we sold INR936 crore with a very marginal growth of only 1% compared to previous year first-quarter. So even in nine months, we expect to sell more product also. So overall, we believe that we’ll be earning between 14.5% to 15.5% this year for the company.
Sneha Talreja
Understood. Sir, and lastly, in case I may, any clarity on the anti-dumping duty Navy? Recently, there was a document stating that’s got extended September 2025, any sense there would be no
M. P. Taparia
Government that will general enough disclosure notice addition the quantum of injury that each foreign exporters applied to the Indian industry. Now thereafter the final anti-dumping duty is, recommendation is going to be announced by General Care Remedies. Thereafter — after the announcement, the Ministry of Finance, the German and they should duty import notification. Normally it should take between three to four months. So now in the month of July, so we anticipate the duty may come second-half October or 1st of November. But I did not know the Ministry of Finance and general Trade.
Sneha Talreja
Understood. Very helpful. Thanks a lot, sir and all the very best team.
Operator
Thank you. The next question is from the line of Punjan Shah from Ventures. Please go-ahead.
Pujan Shah
Hello.
Shri R. J. Saboo
Yeah,.
Pujan Shah
Yeah. If you just wanted to understand on the price hike which happened in the applic in May. So has announced a price hike of INR3.5 per TGM PVC. So just wanted to understand that price has been fallen up to the certain levels that has impacted our pricing and ultimately it has retailed the inventory loss or what has happened in the scenario?
M. P. Taparia
No, well, there was no price hike in April, May. There was your price increase and they dropped the price. So net-net, the prices dropped, then what it was on April, the prices were dropped in the month of June, then they increase the price and again they give the scheme, then now the price would then increase the steam. So net come down only.
Pujan Shah
Okay, okay, got it. So right now we should expect the price range should be around 65, 68 to 50 per kg.
M. P. Taparia
You know better. Yeah. Okay, yeah.
Pujan Shah
And sir, second question would be on the JVM front. We know that from the last 10 odd months, we have, the fund flow challenge has been there. So any green shoots being visible on that part? Do we think that quantum of money should be flowing in, in coming months? How do you cause the trend now?
M. P. Taparia
But I can — you check-in?
Shri R. J. Saboo
Can you repeat this?
Pujan Shah
Yeah, you afraid. So hello, am I audible now?
Shri R. J. Saboo
Yes, please.
Pujan Shah
Yeah. So I’m talking on the GBM front. So we know that from the last 12, 12 months, there is a functional challenge in the.
M. P. Taparia
So money. Money is not there. They owe me INR2.4 rupee today and last more than six months.
Pujan Shah
Yes, so that’s what I’m trying to understand. So how — so what’s your outlook in coming months? Do you think that this front flow challenge will get resolved and should be happening in coming months like I’m talking in August, September.
M. P. Taparia
I don’t expect my money will come, I’m sure.
Sneha Talreja
Okay, okay, got it. So full-fledged is expected not here, not soon.
M. P. Taparia
Money will come.
Sneha Talreja
Okay, okay. Got it. Got it. Thank you. Thank you so much.
Operator
Thank you. The next question is from the line of Sonali from Jefferies India. Please go-ahead.
Sonali
So thank you for the opportunity. Sir, my question is, if I actually look at segmental volume growth, packaging volume growth has been quite strong at about 10%. So that despite again the PVC volatility. So can you help us understand exactly what we did at this point in time? And also secondly, what is the channel inventory right now? You did mention in your media interview remarks that you are seeing no destocking now. So how is the channel inventory now versus what it was in March?
M. P. Taparia
You have two questions you are asking. So when you asking packaging division, packaging Dusion definitely made a good business growth and there was no inventory loss in packaging division and the demand for our laminated product and our pocket packaging product, both segments the demand is quite strong. In Packaging, we don’t have extra capacity. Capacity we are already selling. So this is just a packaging film. On packaging should come, we — as I told — we told earlier that we don’t see any more price erosion in raw-material price. And we have already indicated that we may grow between 15% to 17% in volume in plastic division this year.
Sonali
Got it, sir. That’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go-ahead.
Keshav Lahoti
Hi, thank you for the opportunity. Sir, firstly, I wanted to understand your volume growth guidance for plastic pipe division, which was 12% to 14% in-spite this being a muted quarter, you have raised your guidance to 15% to 17%. What is the thought process for the same?
M. P. Taparia
Last year, the business was from July when the pressure started falling and they continuously up to March 2025. This year, we don’t — so lot of destocking took place. Now there is no possible destocking. Now the people stock now people have no concern about further price erosion. So — and the demand from — going-forward, the rains are quite. Demand for and demand for housing both is going to remain very robust and we have added several new range of product. We have added several new — additional distributors. We have added several — additional SKU. Now SKUs are more than 15,000 numbers and we have a 45 system and all the system are well-accepted. So we are quite optimistic that the growth number in volume that we told you we achieved.
Keshav Lahoti
Okay, understood. Got it. And what sort of volume for you’re looking for this year as well as for next year?
M. P. Taparia
So active is 71,000 tonne, it will come in our hand oil from 1st August. So this year, we hope that we may be able to sell 30,000 ton out-of-the volume — capacity? Next we will talk in the month of April next year.
Keshav Lahoti
Understood. Got it. Sir, lastly, what is the progress on the OPVC pipes, what sort of capacity you are adding when will it come and what sort of volume you are looking for this year?
M. P. Taparia
We’ve got two lines capit around 500 tonne per month and we are getting orders.
Keshav Lahoti
Okay. What sort of capacity you plan to add? Earlier you had a plan to add go till 32,000 KMT by FY ’28,
M. P. Taparia
The plant remained good even today. We have to come over a longer period by 2028.
Keshav Lahoti
Okay, got it. Thank you.
Operator
Thank you. Thank you. Thank you. The next question is from the line of Meet from Motilal Oswal. Please go-ahead.
Meet
Hi, sir. Thank you for the opportunity. First one is on our CPVC business. So you’re ramping-up capacity there. So in our pipeline of from up to-1 million ton, how much will be a part of CTVC or CPVC expansion has been done already?
M. P. Taparia
Out of 1 million ton issue will be quite large information.
Meet
Okay. Okay. No way sir. And on the — further to dwell on the demand-side , like of our growth estimates in the classic system. So which segment or what gives you confidence of such a high-growth if there is no destocking and where — which demand or segment-wise pocket we will see the demand coming in from, like in agri, residential, can you throw some light on that?
M. P. Taparia
And our business combination, we are larger player in-housing culture. In strategy by VGS, housing demand is going to be quite good and we were missing the silent pipe made from polypropylene. We are making silent pipe from PVC. Now from next month, we are going to launch on 18th August, our Silent pipe based on polypropylene. So the rain which are missing also will be available. Our part pipe system also very, very accepted. Our polypropylene system are also very, very accepted. So many new system that we have launched, we anticipate that there will be good growth in the housing segment also. So combined number what we told you that we will grow between 15% to 17% by volume in this year?
Meet
Okay, okay. And on the — lastly on this PTMP process. So any color on that, how that segment is doing all-in terms of testing and launches?
M. P. Taparia
We are adding new way to start based on PTMT they are very well-accepted we are going to launch a range of sour sauce and our source will be very large range which is going to last two months launch in another two months. One, two months, maybe one, two months large.
Meet
Okay, okay. Thank you so much, sir.
Operator
Thank you. The next question is from the line of S. Ramesh from Bang Equities. Please go-ahead.
S. Ramesh
Thank you and good evening. So when you talk about the pipes for the gas sector, what is the kind of annual revenue you can expect from that will start delivering those pipelines? And secondly, in terms of the margins compared to agriculture and housing segments, is there any improvement in margins in the gas pipelines etc?
M. P. Taparia
No, the gas pipe we just restarted, so we can’t talk much, much more detail about the margin or the volume. This is our first educational order and we supplied and we cannot give any quantum idea of how much business you will get this year. We cannot give and between how she enter, how she definitely enjoy better margin low-margin.
S. Ramesh
Okay. So if you look at your results and the gross margin in the 33% range, do you see any levers to improve the gross margin and the share of the higher-margin products improving in the next two to three years? And secondly, in terms of the fixed costs, would you be able to get some operating leverage once you grow gross margin? What is the thought process there?
M. P. Taparia
That when we told you 14.5% to 15.5%, if you are that what we are tracking, we will achieve.
S. Ramesh
Okay. And finally, in terms of the variety of plastics, including polyesterne, polypropylene and PVC, we should possibly see an increase in supply based on the various petrochemical projects. How do you see the increase in supply helping the plastic processing industry, including your company and what are the areas you’re working on, including new applications in say PE per PP and your sister-company has an ABS project coming up. So any thoughts there? Which are the new areas you would be exploring industry over the years?
M. P. Taparia
Fortunately India supply is always abundant so there is no concern about not getting raw-material except PVC but PVC government allowing imports so there is no issue otherwise all the material are abundantly available in our country.
S. Ramesh
Okay. Thank you very much, you all the best.
Operator
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go-ahead.
Shravan Shah
Hi. Sir, for this quarter for industry, is it fair that the 6% growth that we have seen for plastic pipes, the — have you done better than the industry?
M. P. Taparia
Only in-housing, not we are playing housing both. There are some players are plastic piping who are more permanent in agriculture and some players who are more permanent only in-housing. So I can’t give proper control with anybody else
Shravan Shah
But for for average for average, if you, if one has to look there for first-quarter, how much industry would have grown?
M. P. Taparia
I have no number with me, so I cannot give any number, but large between the industry.
Shravan Shah
Okay. And for full-year FY ’26, how do we see industry would be growing at what rate will be growing
M. P. Taparia
Better than the industry? Industry may grow by around 9% to 10% of that.
Shravan Shah
Okay. And then there in terms of CPVC, that would definitely would be more than 10% kind of a growth would be there in CPVC
M. P. Taparia
Not cpvc
Shravan Shah
Okay, okay, okay, got it, sir. Thank you.
Operator
And my team. Thank you. The next question is from the line of Parachit Gupta from Fairvalue Capital. Please go-ahead.
Parikshit Gupta
Thank you very much for the opportunity. My first question is on the PVC resin price. You mentioned that the June as well as July month has observed a price decline from the — from Reliance. However, the numbers posted for K-6701 grade, there has actually been an increment on May 1, the price was around 71 averaged around the country, which is now around 75.6%. Can you please tell me there is some mistake in my understanding here?
M. P. Taparia
You may be the addition, you may not be doing the discount, but they give — they give some quantity discount. So I don’t think we know the pricing. Understood. If you give so much, there is so much discount, if you give so much, there is so much discount that you may not be and there were different from different customers.
Parikshit Gupta
Okay, understood. And just structurally, sir, if the prices because of either anti-dumping or maybe further supply-demand scenario goes further up for PVC resin. Wouldn’t that hurt margins for players such as ourselves? I know that the quantum of pass-through to customers will also matter here, but you know, given a upward trend in pricing, wouldn’t that hurt the margins?
M. P. Taparia
As on today, there is no upward trend. I only say there is no more downward trend and upward trend, we don’t know when we don’t know when duty will come. There should be small increase the demand for the plastic packing system because this is the best material for the given application, where do you use it? There is no other material we can compete with PVC.
Parikshit Gupta
Okay, understood. Because most of the other companies, their competitors have guided at least a 6% growth of prices in this financial year.
M. P. Taparia
There’s no
Parikshit Gupta
But anti-dumping.
M. P. Taparia
There no better.
Parikshit Gupta
Okay. My second question, can you please tell me the split between the more commoditized pipes such as UPVC and the more value-added products, for example, CPVC, OPVC and how do you see that split going-forward?
M. P. Taparia
Major market will remain always wish. Larger volume.
Parikshit Gupta
So for Supreme, how much was the split was the share of UPVC in the last quarter?
M. P. Taparia
Classified information. Thank you very much.
Parikshit Gupta
Okay, sir. Thank you. Thank you for answering my questions.
Operator
Thank you. A reminder to all the participants, you may press star and one to ask questions. The Next question is from the line of Punjan Shah from Molecule Ventures. Please go-ahead.
Pujan Shah
Opportunity. In terms of OPVC, you said that we have receiving some orders and we are also seeing the markets like Gujarat is also opening up. So in terms of understanding right now, so one-side, we are suffering from the issue. Second is we are getting orders. So can you just broadly could help us to understand how we are getting this from the OPEC and how we are panning out? Do we try — we are trying to tap in new type of opportunities for OPEC?
Shri R. J. Saboo
You repeat, actually we are not very clear what you are asking
M. P. Taparia
God you were asking us.
Shri R. J. Saboo
Yeah, thank you. Yes. Please repeat that slowly.
Pujan Shah
Am I clear now?. So in terms of OPVC, we — in the last — in the last participant, you said that we are receiving orders for the OPVC part. And also there is suffering from challenges in there from the JJM part. So are we tapping any new opportunities for OPVC, which can open up new market-specific and so is that — is that what we are trying to do or we are getting some orders from new states like?
M. P. Taparia
I must make you clear to you, OPVC is a limited market because it is a replacement of ducti iron pipe. And as on today, the iron pipe between 100 millimeter diameter up to 315 millime diameter, this only can be replaced at an cost to the user which are shared government or municipal corporation for carrying butter so it is a very small market or special segment only you can use OPC pipe and they are very limited there are being made which are sharply from 110 millimeter. PVC pipe people are making from 20 millimeter to 90 millimeter yet is not made from OPVC. So bring the market is 400 to 1.2 meters. That is not went from PVC.
Pujan Shah
Right, right, right. Got it, sir. But we are seeing that the new states like Gujarat has been opening up and so is that — so just wanted to understand the order inflow in terms of OPVC. Are we seeing very green shoots in OPVC from this quarter
M. P. Taparia
When I say our KPC, 1 million ton and OPC by KPE is 6,000 ton. Right. Got it, sir. Got it. Got it. So 1 million, 6,000, very small KPC.
Pujan Shah
Right, right, right. I agree. Okay. Okay.
Operator
Thank you. The next question is from the line of Rahul Agarwal from Equi Assets. Please go-ahead.
Rahul Agarwal
Yeah, hi, sir. Very good evening. Thank you for the opportunity. Sir, two questions. Both on cost-saving initiatives. The annual report talks about the renewable energy now being 30% across between industries in terms of power and fuel cost. So I believe the intention is to have you know, over a longer-term, 100% of this coming from renewables. If I have to understand the power and fuel cost-savings on a per ton basis or overall company basis, how should we understand that? That’s the first question.
P. C. Somani
Yeah. Yeah. You see, going-forward in every year, every month, we are looking how to increase the share of renewable energy but with the constants of discounts, constant of the regulatory approvals, etc., the last year we had a share of 21.45% of from renewal. This year, we are targeting for the year should be 30% plus. All our plants, wherever we have the space, we are going with the solar and apart from our own plants, we are also participating to the purchase of green energy from other sources. But although it’s very easy to say how we should go for 100%, but in real-life, because of the various regulatory challenges, we cannot, we have to remain dependent upon the discoms and state power. But yes, from 21 to 30 this year and 35 next year is how we have to make the progress.
Rahul Agarwal
So Sumanji, is this like all the benefits are completely passed-through in terms of pricing or do we retain something on the margin side? Like how does it work? Is it like completely volume benefits on-sale volumes or is it like cost-savings
P. C. Somani
You are talking of energy or you are talking of the prices of the product.
Rahul Agarwal
I am saying if we save money from renewable energy, do we decrease the selling price of the we got
M. P. Taparia
So many increased course also dear friend.
Rahul Agarwal
Yeah, sure, sure, I understand that we,
M. P. Taparia
We balance all the course together.
Rahul Agarwal
Okay, sir. And second question similarly on freight and forwarding because we have seen new state locations, new plants have been added. I think most of these savings are also getting passed-through or is it some, you know is saving also part of EBITDA margin? Sorry, sir, I was you are not audible. Could you pardon me, please?
M. P. Taparia
I ship the benefit of the lower freight is passed to my customer.,
Rahul Agarwal
Okay, okay, got it. So that is basically leading to higher volumes.
M. P. Taparia
Get the lower-cost of buying buy from my company.
Rahul Agarwal
Got it, sir. Got it. That’s all from my side, sir. All the best for the rest of the year. Thank you.
Operator
Thank you. The next question is from the line of S. Ramesh from Bang Equities. Please go-ahead.
S. Ramesh
Thank you for the follow-up question. So you’re looking at your capacity utilization, it seems to be in that 60% range. So when you talk about improved performance over the rest of the year what will be the capacity utilization by the end-of-the year.
P. C. Somani
The overall for the company should remain between 65% to 70%.
S. Ramesh
And after FY ’24,
P. C. Somani
Then many of the capacities come during the year. So they are not available for the full-year. So we want to take the opening capacity and then whatever capacity has been expanded during the year, it will come gradually. So if you take the effective capacity for the year, then 65% to 70% is a reasonable number what we achieved.
S. Ramesh
Okay. And beyond that, is it assuming that the market improves, can you go up to 18%, 90%, say, in future over the next two, three years, is that possible? And will that give you — sorry,
M. P. Taparia
The current expanding our capacity.
S. Ramesh
Okay. Okay, fair enough. Thank you very much.
M. P. Taparia
Thank you.
Operator
Thank you. Thank you. The next question is from the line of from BOB Capital. Please go-ahead.
Analyst
Yeah, hi, good evening, sir. Sir, my first question is on the pipe segment. So just wanted to know like how has been the pipe demand from housing segment in June quarter compared to previous year. And if you could quantify a 55 volume growth for June quarter.
M. P. Taparia
Now housing demand good, but we can’t quantify because many areas, we could apply for housing also. So we are not able to identify how much is going for housing, how much is going for agriculture. But our housing, the customer who are giving in-housing, they had a growth in the business, there is no degrowth. Same only from those customers who were giving any such a pipe business. Only there is a business become completely very much in the month of June.
Analyst
So and sir, what would be your CPVC volume growth for June quarter?
M. P. Taparia
Okay. Classify international.
Analyst
Okay. And sir, second question is regarding the channel inventory. So if you could come provide some color like how is the inventory level at the dealers? Is it at normal or below normal at the end of June?
M. P. Taparia
Normal.
Analyst
Okay. And so you expect the dealers to restock — start doing the restocking of inventory from September quarter
M. P. Taparia
Onwards because start coming from September.
Analyst
Okay. Thanks a lot, sir. Thank you.
Operator
The next question is from the line of Kumar from Ambit Investment Advisors. Please go-ahead.
Shivkumar Prajapati
Thanks . Thanks for taking my question. Good evening, sir. So my first question is, do we have any internal volume growth target across our product categories, say for pipes, furnitures, packaging? And if yes, then what would — target for the next three years?
P. C. Somani
Next three years
Operator
I’m sorry to interrupt, sir, your voice is not audible. Hello.
M. P. Taparia
No, we can’t anything about this year only we have more.
Shivkumar Prajapati
Okay, but sir, do you have some separate internal targets based on the segment that we operate or is it a consol target?
M. P. Taparia
Is this share?
Shivkumar Prajapati
Okay, okay, sir. And sir, would you be able to share the percentage of premium products as a percentage of total volumes or say total revenue.
M. P. Taparia
Now entirely because the first-quarter was revenue from.
Shivkumar Prajapati
Okay, okay. Thank you, sir. And sir, my next question is on this composite that we are trying to crack. So right now it is very minimal, but as per your assessment, how huge this opportunity can be in the coming years
P. C. Somani
Composite cylinder. You see we have a capacity of right. We are keeping getting that capacity fully utilized. Now this time we have got the letter of acceptance from from. Really get the continuous order intake for any expansion or any opportunities meaningless.
Shivkumar Prajapati
Okay. So, sir, on a rough estimate, I mean as per my estimate suppose INR2,700 per unit and there are around 30 crores plus LPG cylinders. And if we take a conversion ratio of say 5% to 10%, then the opportunity size comes within INR4,500 crores to INR9,000 odd crores. So what do you think like how fast this conversion can be? I mean in the next three years or five years down the line, do you see that the conversion would be 50% or 60% or something similar to it? And which other players are you know
P. C. Somani
We wish whatever you are suggesting can happen. We are and go back. Forese plan, please open it.
Shivkumar Prajapati
Got it, sir. Thank you so much. Best of luck.
Operator
Thank you. The next question is from the line of Arun from ICIC Securities. Please go-ahead.
Arun
Hi, sir. Sir, just one clarification. So when I look at your raw-material cost, it is at around 68.6% against a ballpark 68.1%, so 50 bps has increased. So the inventory loss doesn’t look so big based on these numbers. Am I missing something, sir?
P. C. Somani
So here, what you are saying is right, but you see our total inventory has increased and when the inventory gets increased, then the inventories cost which includes your power fuel, which includes your other manufacturing overheads. So those gets added to the inventory valuation. So carry-on something. So the inventory valuation gets added with the overheads also. So total material cost what you are looking would include the part of the overhead. That’s why you are not finding the difference between the raw-material cost that way.
Arun
Okay.
P. C. Somani
So you will come in the separate line and the value get it into inventory.
Arun
So part of — we have a
P. C. Somani
Substantial increase of inventory in this quarter, about INR157 crores. Yeah, please
Arun
Even if I look at the other expenses, they went up dramatically. So is this the way we should think this number should be broadly in that range or is something one-off in that?
P. C. Somani
No, other expenses, I mentioned to you, because of the inventory getting valued above-the-line and coming general and our production has increased by 14%. Although our service volume has increased only 6% of our production. So has increased by 14%. So certain overheads are linked to the production volume,
Arun
Okay. And second thing, sir, just with regard to our guidance, you know, we had a guidance, we knew of acquisitions, we were expecting 30,000, 35,000 tonnes even last quarter when we did the call on 24th of April. So is the demand change so dramatically between this two months post that.
P. C. Somani
No, in the first-quarter, as mentioned earlier, because the early breakout of monsoon, the June month was very bad.
Arun
So I appreciate that point. I’m just trying to say is when we gave our guidance on 24th of April, that is after Q4 results, we do acquisition is happening, right, and 30,000 tons we mentioned, 30,000 35,000 tonnes even last quarter. So basically, your core business is going to see much better growth. So has the market conditions become so better in the last two-odd months, is that the case?
P. C. Somani
Our earlier guidance, we have not factored any of at that point of time. We wanted to have the — everything fall into place.
Arun
No, sir, you had mentioned clearly guidance for in the last call you had — that’s why you are saying because you were saying industry will go at 6% to 8% and we will do a bit better with. That was the thing we had mentioned in the last —
M. P. Taparia
Not without — without worry, we said the industry we will grow better than the industry, remember what we told? We said the plastic pipe industry grow 2%, 3% more than the GDP growth?
Arun
Yes, sir.
M. P. Taparia
And we will grow 2%, 3% more than the country’s growth.
Arun
Okay. So basically now the industry market. Okay. So now the industry goods look better for us, right, right? So the industry growth looks much better now compared to only show in Q1.
M. P. Taparia
Yours will be better answer all companies will grow better than the industry.
Arun
Okay. Thank you, sir. Thank you very much.
M. P. Taparia
Okay.
Operator
Thank you. The next question is from the line of Puneet, an Individual Investor. Please go-ahead.
Puneet
Hello.
M. P. Taparia
Yeah, please.
Puneet
So I was wondering in terms of margin. I understand pipes is not a very margin-accretive segment. So in terms of the difference between the pipe sold to agri, how — what is the difference in margin for the piping division and what is the difference — what is the margin that can be for the value-added division? And one more question is regarding the pipes offtake in the agri segment. I understand June has been a little off for agri, but how do you see the overall state and central policy affecting and in terms of rest of the — which states — which is under the payments?
M. P. Taparia
How overall for the full-year, we believe the demand for price will be better than last year. So the prices are low and farmers and now there are so many problems are end of water, they will spend money for development or any water supply to their field. So we anticipate the demand for any segment overall for the year will be better. In-spite of whatever happened in last year for May and first-half of June, demand will better.
Puneet
So about the margins like what can we expect the piping segment margins compared to the value-added segment margins. What could be the difference between that?
M. P. Taparia
Segment is also part of pipeline system. Pipeline system is not only pipe, we have got more than 15,000 SKU in pipeline system. And out of this pipeline is very small number of pricing products we make injection molded, blow-molded, fabricated, molded by-product which are all item on but like
Puneet
I was wondering, like I understand, but what could be the margin that we can expect to forecast for the pipes because you mentioned that for the value-added segment, the margin is higher for rest of them. So I was wondering because piping contributes to majority chunk of the overall revenues, what can be the margin for that? And incrementally as the contribution level changes to the overall revenues, however
M. P. Taparia
Pipe different margin I can’t earn 14.5%.
Puneet
Understood.
M. P. Taparia
Can you for, we cannot earn to buy major coming from piping system.
Puneet
So 14% is what we can expect from pipes also.
M. P. Taparia
We don’t have pipe we are system and pipe under system more than 15,000
Puneet
Got it, sir. Thank you.
Operator
Thank you. The next question is from the line of Anchit from CLSA. Please go-ahead.
Anchit
Hello. Yeah, hi. Thank you, sir. Sir, can you repeat the value-added product sales number, please?
M. P. Taparia
First-quarter, we showed INR933 crores, our overall turn-over INR2,600 crores. And where you get to INR973 crores.
Anchit
Okay, sir. And so we expect this to be better than last year-on a full-year basis.
P. C. Somani
Sure.
Anchit
No, so I’m asking.
P. C. Somani
Yeah, sure will be better. Definitely, but
Anchit
Yeah, okay, okay. Thank you, sir.
Operator
Thank you. I remind you to all the participants in a test and one to ask question. That’s sure. The next question is from the line of Mr from DAM Capital. Please go-ahead.
Aasim Bharde
Yeah, hi. Sir, I wanted one clarification on the — or your comment on the plastics pipes capacity. So earlier in this call, you said you will reach 1 million metric tons per annum by March of 2026. This was also your target earlier too. But in the AGM or in the Chairman speech, it was mentioned that you will reach 9,40 by March 2026 and that included by 70 odd. Now you are saying 1 million again. So have you high green it one of both of the greenfield pipe plants you are planning? And if yes, basically what has changed in June and now for that March 2026 target to increase to-1 million.
P. C. Somani
Now this 940 million which was mentioned was without actually. It was you can say there is, so total will be 1 million some year.
Aasim Bharde
Okay. So basically no change. 1 million is the same number. Okay. Okay. That’s it. That’s it from my end.
M. P. Taparia
Thank you very much.
Operator
Thank you. Thank you. The next question is from the line of Karan from AMC. Please go-ahead.
Karan Bhatelia
Hi, sir. Thank you for the opportunity. Sir, just wanted some clarity on the Greenfield CapEx. You are — we were incurring earlier at Bihar and Jammu. So any concrete update on that?
M. P. Taparia
No, as on today, we are doing nothing on Jamal land. India also in. And both their location, we are not doing anything. We’ll be adding five new plants this year, three from, one plant we are putting a system into in Madhya Pradesh and one plant in Rupee where, where we are putting a plant to make profile for windows.
Karan Bhatelia
Okay. And sir, one more
M. P. Taparia
Five new plant will be to our existing 30 manufacturing plants.
Karan Bhatelia
Right. Sir, we were planning for one packaging unit near. So what about that?
M. P. Taparia
Up till now we could not require the rent.
Karan Bhatelia
Okay. Thank you. Thank you for the clarification. That’s it from my
Operator
Thank you. As that was the last question for the day. I now hand the conference over to the management for closing comments. Over to you, sir.
M. P. Taparia
I thank you very much. We are very thankful to all the queries who made very intelligent and very enhancing your question. We are very thankful for the time and for the guidance to us. Thank you very much.
Operator
Thank you. On behalf of Capital Advisors Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
P. C. Somani
Thank you, ma’am.
M. P. Taparia
Thank you