The Supreme Industries Limited (NSE: SUPREMEIND) Q4 2026 Earnings Call dated Apr. 27, 2026
Corporate Participants:
Aasim Bharde — Vice President – Research
Shri M. P. Taparia — Managing Director
P. C. Somani — Chief Financial Officer
Analysts:
Sneha Talreja — Analyst
Sonali — Analyst
Analyst
Rahul Agarwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Supreme Industries Q4FY26 earnings conference call hosted by Dam Capital Advisors Limited. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing Star and zero on your touchstone telephone. Please note that this conference call is being recorded. I now hand the conference over to Mr.
Asim Bharde from Dam Capital Advisors Ltd. Thank you. And over to you sir.
Aasim Bharde — Vice President – Research
Thank you Farah. And good evening to everybody joining in for Supreme Industries Q4 and FY26 post earnings call. So we have as usual the senior management of the company led by Mr. N.P. Taparia, Chairman and Managing Director, Mr. P.C. Sobani, CFO and Mr. R.J. Sabu, VP, Corporate affairs and Company Secretary. Thank you. And over to Mr. Taparia for his opening comments.
Shri M. P. Taparia — Managing Director
Thank you. Mr. Yashim. I am Ampariha, Chairman and Managing Director of the Supreme Industry Limited. I along with my colleague C.P. Somani, CFO and see R.J. Sabu, Vice President, Corporate Affair and Company Secretary. Welcome all the participants who are participating in the discussion of the auditory stand alone and consolidate financial result for quarter and year ended 31st March2026. The exchange alone results and the consolidated are already with you. I will give brief on company product operating performance and other highlights.
The company sold 7 lakh 53,907 ton of plastic goods and achieved revenue from operation of rupees 11,218 crore during the year under review against sale of 6. 74,510 ton and revenue of rupee 10,446 crore in the previous year achieving volume and revenue growth of about 12% and 7% respectively. The consolidated operating profit and profit after tax for the year under review stood at Rupees 1654 crore and Rupees 954 crore respectively as compared to Rupees 15,52 crore and Rupees 961 crore in the previous year.
This represents an increase of 7% in operating profit while profit after tax declined marginally by 1% year on year. The business scenario of all the product segment of the company for year ended certificates March 2026 as compared to years has been age under plastic piping system business grew by 14% in volume and 11% in value term industrial product segment business Degr by 1% in volume and 3% in middle term. Packaging product segment grew by 5% in volume and 3% in value term consumer product segment business grew by 4% volume and degree by 1% revenue term.
The total the overall turnover of value added product increased to rupees 4677 crore as compared to rupees 4060 crore in the previous year, achieving growth of 15%. The company proposal to commit capital expenditure in excess of rupees 1000 crore during the year, including careful commitments from the previous year. Capex plan includes new greenfield project for plastic piping system at Pattna in Bilal, Jammu, Jammu in Kashmir and Gadigao near Jalgaon in Maharashtra and a new facility for material handling product at Malanpur in Madhya Pradesh.
The purport and committed CAPEX is principally aimed at strengthening manufacturing capabilities, expanding capacity, enhancing product offering and advancing sustainability initiative. The planned capital expenditure is expected to enhance the company’s annual install capacity by approximately 10,000 metric ton, taking the total installed production capacity to around 1.35 million ton per annum. The financial year 2000-22-526 was a challenging yet eventful year for marked by volatility in allotted prices, prolonged unseasonal rainfall, subdued infrastructure spending and heightened global geopolitical uncertainties.
Volatility in US resin prices including frequent surprise movement during the year significantly impacted channel dynamics while extended market conditions affected demand particularly in the yield segment. Despite the challenges, the company delivered healthy volume growth across its diversified product portfolio underpinned by its strong domestic market orientation, wide product range, robust distribution network and disciplined execution. The plastic piping system business retained its literacy position led by continued expansion of value added production, launch of new system and capacity augmentation across various locations.
The company further expanded its portfolio by introducing new SKUs and system catering to diverse applications in line with the evolving requirement of a growing economy with a wider range of electrofusion and olefin fitting, the company entered the industrial pattern system segment thereby opening additional business opportunities. During the year, the government announced large infrastructure investment which are expected to support demand for water supply network under high grade initiative and the expansion of bio natural gas infrastructure for household usage.
The company continued to implement a prudent and well defined business strategy anchored on five key innovation, smart manufacturing, strong relationship with a cadre partner, effective customer service and deeper reach across the country. Company happy to announce that a new product segment in window and road division Nash Kanpur Jihad in UP has gone into production effective 1st March 2026. The product is well received by the market. Company expect to sell the capacity by next year which will also Enable it to expand capacity at the same site the company’s consumer and packaging business delivered stable to encouraging performance with targeted product innovation, customer diversification and focus on value added offering.
Industries segment however continue to witness demand slowdown from OEM customers. Export performance witnessed moderation due to geopolitical development and tail related disruption. However, the company remain optimistic and making focused effort to boost export of company product to avail the emerging opportunities with many free trade agreements already signed by India and some are in progress which will enable the country to boost export of manufactured goods. Looking ahead, the Indian economy remains well positioned for sustained growth driven by domestic redemption institute development and policy support With a strong balance sheet, zero debt, expanding manufacturing base technology leadership and diversified business model.
The company confident of delivering improved performance in the coming year and creating long term value for all shareholders. This is a brief and overall survey for the quarter and year months ended under reference. Thank you for your patience. Now I and my colleague CPC Somani and Sri Ajay Sabhu are available could apply to America’s credit. Thank you very much.
Questions and Answers:
Operator
Thank you very much sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask a question may enter STAR followed by one on the touchstone telephones. If you wish to remove yourself from the queue, you may enter STAR and two participants are requested to please use only handsets while asking a question. We will wait for a moment while the queue assembles. The first question Is from the line of Rahul Agarwal from Ikegai Asset. Please go ahead.
Aasim Bharde
Hi sir, Good evening. Thank you for the opportunity. First question is on the on the inventory gain which we would have had in March because of higher PVC pricing. Could you help with the number for the fourth quarter or for the full year? Whichever you have
Shri M. P. Taparia
A full year there might be hardly any inventory can be earlier quarter there is immediate loss.
Aasim Bharde
Yes sir, I’m aware of that.
Shri M. P. Taparia
No, we don’t see any inventory again for a full year but in the space in the fourth quarter there may be inventory again net to net maybe around 70 to 80 crore.
Aasim Bharde
Okay, so got that. And the second and last question was on CapEx. You have detailed in the press release about the Capex but any plans on the packaging side where you think you should expand capacity
Shri M. P. Taparia
Packaging side We approached a landed near JMP going on. Once the land comes in our position then we announced putting a facility to make packaging product it close to JNPT area We must be marked for export market.
Aasim Bharde
So how much would be the Capex there? What kind of Capacity. We think we should let
Shri M. P. Taparia
The land come in our hand. Then we’ll talk to you. Please.
Aasim Bharde
All right, sir. And last question. Sir. What is what are the growth for CPVC pipes?
Shri M. P. Taparia
Last year we had a growth of around 38%.
Aasim Bharde
Thank you so much sir. And wish you all the best for the next year.
Operator
Thank you. The next question is from the line of Shavan Shah from Dollars Capital. Please go ahead.
Aasim Bharde
Hi sir. Thank you, sir. Now how are we looking at the overall volume and piping volume for FY27.
Shri M. P. Taparia
Packaging? We anticipate growth between 15 to 17%.
Aasim Bharde
15 to 17% in piping and overall
Shri M. P. Taparia
Around 12%. 12 to 13%. 12 to 13%.
Aasim Bharde
12 to13%. And for margins or how now we look at the margins
Shri M. P. Taparia
Between 14 to 14 and a half percent.
Aasim Bharde
14 and a half percent. Okay. 14 and a half, sir.
Shri M. P. Taparia
14 to 14 and a half.
Aasim Bharde
Okay. 14 to 14 and a half,. Okay. Got it sir. Now given the PVC prices so much volatility that we have seen 4748 rupees up in the January to March and then again 3233 rupees down. So how one can can look at. Do we still see the volatility to continue or now it seems to be stabilizing. And now in last 1015 days how. How are we seeing the channel inventory or the demand? Because such a volatility is there. How it is impacting the demand?
Shri M. P. Taparia
First polymer prices I commodity product they remain volatile. This is not a new situation. Last year typically too much volatility. Price remains always volatility. It can’t demand steady price throughout the year. This never remained. Never remained. And now the previously prices have come down quite a lot. Between 5th of April to 21st April the price has come down by 34 rupees 30% price went down. But prior to that in the month of March the price went up by 32%. So that price increase has been corrected in the month of April.
Now the inventory also the distributed level, retail level are mostly clear. So we do not anticipate now any price reduction. Also because rupee is getting weaker rupees around 94 and half repeat become right. We can. We are too much import dependent. So we do not see any price erosion now in PVC price. Got it?
Aasim Bharde
Got it sir. And lastly sir, this 1 lakh 10,000 capacity that we are adding out of that how much will be in the parking segment and this entire 1 lakh 10,000 will be added by FY27.
Shri M. P. Taparia
They be added by F condition for sure.
Aasim Bharde
Okay.
Shri M. P. Taparia
100,000 will be in piping sector only.
Aasim Bharde
Okay. The entire would be in the. In the piping. You are saying
Shri M. P. Taparia
100,000 piping sector. 10,000 will be mostly in material handling system.
Aasim Bharde
Okay. Okay. Okay. Got it. Got it sir. And then then lastly in terms of the for this Q1 particularly specifically do we see any. Any inventory gain or loss.
Shri M. P. Taparia
They can’t be changed now with price falling with 34 rupees how can they be dead?
Aasim Bharde
Yeah, I. I understand but because the. The previous. How
Shri M. P. Taparia
Can I find a gain in the pressure dropping the garbage invent again.
Aasim Bharde
Got it. Got it sir. Thank you. And all the best sir.
Operator
Thank you. Our next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Aasim Bharde
Hello. Hi. Thank you for the opportunity. My first question is if we’ll. Can we bifurcate in channel inventory has improved in Q4. So possibly what would be the growth because of end demand and because of channel inventory?
Shri M. P. Taparia
I don’t know. Can. How can you can replace? It is not feasible to just quantify the data. Yeah. More than 50,000. We don’t know now what it is. No, not possible. Different.
Aasim Bharde
Okay,
Shri M. P. Taparia
Tell me.
Aasim Bharde
Hello. Am I audible?
Shri M. P. Taparia
Yeah.
Aasim Bharde
Yeah. One last question from my side. So can you give a sense on how you know channel inventory has moved in Q4 quarter monthly wise. And lastly how is the channel inventory now?
Shri M. P. Taparia
We have no idea. No idea. Different.
Aasim Bharde
Okay, got it. Thank you.
Operator
Thank you. The next question is from the line of Praveen Sahai PL Capital. Please go ahead.
Aasim Bharde
Yeah. Hi. Thank you for opportunity. My first question is related to the demand especially for the agri. As we had seen lot of a fluctuation in the previous prices. And we also understand the Q4 and Q1 is where the agree demand comes in. So do you see any impact on the agree demand Especially because of a PVC recent price fluctuation in the Q4
Shri M. P. Taparia
Demand shot only from Q1. Q4 demand was impacted in the month of March. But now Q1 now we are taking Q1 only now demand shattered full force. There is no issue. Big demand now coming from eco segment.
Aasim Bharde
So with the price correction demand has picked up in the agree
Shri M. P. Taparia
Come down very low. And either sector they don’t keep inventory earlier. Normally they don’t keep and so now the price are quite low. So demand has come very bushful.
Aasim Bharde
Okay. And also with these fluctuation in the PVC rating prices have you seen any impact on the plumbing Especially some delay from the builder side or the project side of the business in the Q4
Shri M. P. Taparia
You can’t complete building without plumbing.
Aasim Bharde
Okay. One clarification on the
Shri M. P. Taparia
Demeanor from the region. No demand restriction.
Aasim Bharde
Okay. Okay sir. And one clarification on your 38% of YUI growth in the CPVC is that of a volume or a value? This is a volume growth in the cbbc.
Shri M. P. Taparia
Yeah. In a full year.
Aasim Bharde
For a full year. And can you give any indication how much is a contribute to our total piping business?
Shri M. P. Taparia
No idea.
Aasim Bharde
Thank you sir and all the best.
Operator
Thank you. Participants. It’s a request. Please limit your questions to two questions per participant. The next question is from the line of SVEHA from nuvama. Please go ahead.
Sneha Talreja
Thanks a lot for the opportunity. Just couple of questions from my end. What would have been the industry group in FY26? So any number there or maybe even Q4 would be helpful
Shri M. P. Taparia
System.
Sneha Talreja
Yes sir.
Shri M. P. Taparia
We are told by RAM producer that it was -9%.
Sneha Talreja
-9% was FY26 growth
Shri M. P. Taparia
F by 26 JJ volume degrowth by 9% in plastic piping system in your country.
Sneha Talreja
Wow. Wow. How are things looking up from here? Anything from polymer suppliers or your say that you know how is industry likely to grow in FY27? Any update that you’ve seen in Nulcijal?
Shri M. P. Taparia
Your question. I’m not clear to you what you asked.
Sneha Talreja
What’s the kind of growth at an industry level that we’re expecting in FY27 and any update that you’ve seen in Nursal scheme. Because there were very recently some allocations made.
Shri M. P. Taparia
You can ask. They told US they anticipate 8% growth this year.
Sneha Talreja
Anything on Malaysia? Sir, recently there were allocations. Have we seen any pickup or government spending starting to take place? Any fund releases?
P. C. Somani
No, as of now we don’t see any update on that. You see this depends upon the state and central government cooperation.
Shri M. P. Taparia
Depend on the state supporting to contribute also. Unless they said contributes and release the money so genuine we are not sure. Up till now it is never happened as to the declared policy of the government of India Central government last two years also whatever budget they announced in February 1st February they could spend only 1/3amount. So we are not sure this year also.
Sneha Talreja
I’m sorry ma’, am, can
Operator
We ask you to return to the question there are the participants waiting? Thank you. The next question is from the line of Sonali from Jeffries. Please go ahead.
Sonali
So thank you for the opportunity and congratulations on a good set of numbers. So my question is about the Middle east impact on the polymers. You did mention in your Press release that you know the impact on polyethylene products is much higher as compared to pvc. But just wanted to understand the broader dynamics of demand supply globally as to what in your view can be impacted more and what impact can trickle down to Supreme’s product or supply because of that.
Shri M. P. Taparia
Now that the Gulf import will be different, all the polymers we apply, they are not only making polymer, they are also supplying feedstore for the polymer to the plant based in Polish Asia, Southeast Asia the pollution are affected so we going to pick today worldwide big way.
Sonali
So if that is the case in your best understanding, why are the PVC prices going down right now? Is it because that the government of India, you know revoked the import duty for a period of three months or is it because globally the supply of PVC has increased over the past one month?
Shri M. P. Taparia
Import duty becoming zero doesn’t improve the volume of production.
Sonali
That’s right. So I’m asking of PVC resin prices.
Shri M. P. Taparia
The point is that PVC is not so much affected as huge volume is coming from China. And China production is not based on crude oil, they want to say based on coal. So coal to pvc, China is a very large producer not affected by any Gulf deception. So China has become a big China buy, a big player in India. Now they become bigger players. So because of that PC is not affected in India, they are getting big supply from China.
Sonali
So you foresee the prices of PVC to go down further like we have seen in the past two weeks. Is that understanding?
Shri M. P. Taparia
It cannot go up very much. I want to go up but will not go up the way the accident gone up.
Operator
Understood, Got it. Very helpful. Thank you sir. Thank you. The next question is from the line of Tejas Pradhan from Citigroup. Please go ahead.
Aasim Bharde
Yeah, hi sir. So just on the note to accounts, the note number six, you have mentioned the change in labor code provisioning. I noticed that last quarter it was mentioned that 15.38 crore is the provisioning and in this quarter it is mentioned as 14.4 crore. So just wanted to clarify if this is in addition to the 15.38 crore that was provided in the third quarter or is there any sort of revaluation of the provision and the net full year impact is now 14.4 crore.
P. C. Somani
Correct. Is the net full year impact earlier in the Q3 we estimated based on our bulk working but based on the actual valuation report which we have made now March 26th, it is a fully impact. So 15.38 reduced to 14.4.
Aasim Bharde
Okay, understood. Thanks. And on secondly on the industry, I mean would you be able to like for Supreme Industries, would you be able to sort of break up the volume trends that we saw in this quarter between Jan and Feb. And how the trends were in March and if you can maybe extend that to April as well. I mean between these three periods how. How were the trends for both us and the industry?
Shri M. P. Taparia
You told me the group expectation. We
P. C. Somani
Don’t declare or we don’t discuss. It’s on the quarter. On quarter we always give the data. Because we
Shri M. P. Taparia
Already have 15 to 17% back in business for the current year. And for this year
P. C. Somani
We
Shri M. P. Taparia
Wanted April which is not feasible. Yeah. Anyway we do not give one to one figure also.
Aasim Bharde
Sure, sure. Any qualitative sense would have also been great. But I mean depending on what you want to disciples. Yeah.
P. C. Somani
As you know the year has begun with the still the geopolitical conflict continued. So really you can’t think of a better things today. But yes, let us hope for the better situation to come.
Aasim Bharde
Sure, sure. Thanks a lot.
Operator
Thank you. The next question is from the line of Bhavindrapani from invested. Please go ahead.
Aasim Bharde
Yeah. Hi sir. Thanks for the opportunity. So first question is related to pvc. So what is our average procurement cost of PVC which is standing as inventory as on 31 March.
P. C. Somani
Inventory requirement cost of inventory. What is you are carrying with empty cost? See, these are the classified information. We don’t really disclose those kind of things.
Aasim Bharde
All right, so. So in terms of days, what would be the number of days of PVC inventory do we have as on the 31st March?
Shri M. P. Taparia
We must give the plant adequate quantity. So the plant should go running based on local and import both to a locally and not adequate. So import it will be slightly more than local. Local you can get but import we need to keep in pipeline. Don’t taking prudent decision. So their plan should not be short of raw material. It must have available India imports 68% requirement, 32% only supply locally. So when double the requirement makes from import and import always just shine now. So you have to keep always inventory in grant or warehouse so that all your we are responsible supplier.
So we never failing you supply to our customers. So we won’t take any decision with that.
Aasim Bharde
Got it sir. So this second question on weaving. So what would be our volumes from weaving during the quarter?
Shri M. P. Taparia
70,000 ton. And we generally we anticipate that overall we will be achieving 70% of our capacity. So I mean we’ll get around 48, 49,000 ton and our business volume this year.
P. C. Somani
And Bowen plants are running normally from February onwards. See initial 3, 4 months. It took time to revamp and refurbish everything. From February 1st they are in normal path.
Aasim Bharde
So what is the contribution in terms of volumes? Return
Operator
To the queue. Pavan. Sir, could you return to the queue please.
Aasim Bharde
This is just a follow up. Just a follow up.
P. C. Somani
So about 4,000amonth from February, March. If you look at so for the quarter it could be around 10,000 tons.
Aasim Bharde
Got it sir. Thank you.
Operator
Thank you. The next question is from the line of Girish Chaudhary from Aventus Park. Please go ahead.
Aasim Bharde
Yeah. Hi. Good evening. Thanks for the opportunity. Firstly, if you could give us some insights on the competitive dynamics. Especially after the war where we have seen significant volatility in the resin prices. Did we see accelerated market share gains? And now that the resin prices have reversed are these small and mid manufacturers coming back strongly into the market? Okay. In terms of the raw material availability challenges, did you hear anything about these small manufacturers facing some issues and
Shri M. P. Taparia
We are not aware. We are not smashing but we are not aware that anybody is not getting humd. We see adequately available.
Aasim Bharde
Okay. So my second question is on the the windows business. So if you could give us some sense on what kind of revenues we can expect in the next one year and the margins as well.
Shri M. P. Taparia
How many you can share.
P. C. Somani
Once we achieve full capacity inflation then it should be about 200 to 250 cr annual revenue.
Shri M. P. Taparia
I mean around 250 crore rupees annual revenue get. We are pretty small capacity. So we may get 250 rupees revenue annually when we start running a transformation.
Aasim Bharde
Okay. And can we assume similar margin for for this business as well?
Shri M. P. Taparia
Margin is
P. C. Somani
Better.
Shri M. P. Taparia
Is a customized
P. C. Somani
Window
Shri M. P. Taparia
Profitable? We invested more than 200 crore rupees in this business. So margin will mention to that we get return on the investment.
Aasim Bharde
Okay. Thank you.
Operator
Thank you. Our next question is from the line of Durgesh Shukla from Incred Capital. Please go ahead.
Aasim Bharde
Hello. Yeah. No sir. Thank you for the opportunity. Actually my question was similar to that labor law code provision which has already been answered. So. Thank you. No more from my side.
Operator
Sure. Thank you.
Aasim Bharde
Thank you.
Operator
The next question is from Shubham Shukla from Voyager Capital. Please go ahead.
Aasim Bharde
Good evening everyone. I’m relatively new and currently trying to build a better understanding of this industry. I wanted to get a sense of the broad capacity utilization scenario both for our company and the industry. From what I’ve observed utilization levels seem to be largely in the 6070 ballpark range. While capacity additions are still ongoing, I wanted to ask what is the ideal utilization level and how do you define lower and higher utilization bands both for company and more broadly for the industry.
Shri M. P. Taparia
Normally we can see if you are able to use in 70%. 75% is a better utilization. During any signal demand come down. Normally we consider always two, three months win project. So this is what we consider depending on businesses. Sometimes you may not get 75%, may not get 70% or 68%. Something like that.
Aasim Bharde
Okay. So 75 is the feeling which we hit and it doesn’t go up more than that.
Shri M. P. Taparia
Business conditions are looking quite okay. If the range remain only normal, no abnormal, no prolonged period of rainfall, then business will be affected.
Aasim Bharde
Okay. All right. Thank you.
Operator
Thank you. The next question is from the line of Utkarsh Nupani from Anandraki. Please go ahead.
Aasim Bharde
Yeah. Hi. Good evening sir. So my first question is regarding the plastic pipe sales volume growth which you have reported for the March quarter. Sir, you have mentioned that the agri pipe demand got impacted in the month of March because the resin prices were falling. And the demand for infra pipe from Jaljeevan Mission has not yet picked up. So just wanted to know what has led to such sharp growth for us in the March quarter. Is it because of the channels
Shri M. P. Taparia
In March demand is finally due to price going down. If you price went up,
P. C. Somani
That’s why the
Shri M. P. Taparia
Month of March the price went up so steeply. The farmer with you to buy the goods in the month of March now the price has come down. So now the demand is normal kilo and then came down by 33 rupee kilo. Now given a normal issue
Aasim Bharde
No support in March. What I wanted to know sir, was it majorly driven by the plumbing pipe and is it because of the channel refilling or. We are seeing a strong growth for the plumbing pipe demand.
Shri M. P. Taparia
Normally season of plumbing only very much demand for increases start big way. Big way start only after the crops are harvested. It happened around 8th or 10th of April. Then demand comes up fully.
Aasim Bharde
Okay. And sir, like whether the plumbing pipe demand was coming from across the region or was it from any particular region like rural or urban. If you can throw some light over here
Shri M. P. Taparia
Throughout the country, people who build the house, they require the plumbing. People build out in area in big areas, people building houses. Up to tier 6 cities houses are built and for any house to function it must have plumbing.
Aasim Bharde
Okay. And sir, lastly on the PVC resin price, can you just specify what would be the current PVC resin price? In the market right now. And do you see any further pressure in the PVC resin prices in near future?
Shri M. P. Taparia
Around 81 rupees kilo. And we anticipate that as rupees go down and prices will go up now.
Aasim Bharde
Okay. Thanks a lot sir.
Operator
Thank you. The next question is from the line of Kumar Soumya from Ambitra Capital. Please go ahead.
Aasim Bharde
Good evening. So a couple of questions from my side. Am I audible? Sir, yes sir. So I just wanted to understand the raw material availability. You said PVC is abundant. So how the situation on SDP side ppe polystyrene. How are they currently available in the market?
Shri M. P. Taparia
All lambda are available in India.
Aasim Bharde
Okay.
Shri M. P. Taparia
We don’t see any problem. Any raw material which is not available.
Aasim Bharde
Got it. Got. Secondly sir, you said the volume for 4Q from Wain is about 10,000 tons since the plant started from February onwards. So is it that the plant did not contribute before that? And this is the annual volume as well.
Shri M. P. Taparia
And maybe we should get 50,000 ton from them
Aasim Bharde
In FY26. How much was it?
Shri M. P. Taparia
We just started the took out the month of August. Then we were remapping. So we get normal production only from February. So we might have got 10,000 ton this quarter. But now for the full year we anticipate we may get 48 to 50,000 ton this year.
Aasim Bharde
Got it? Got it. Okay. Okay. So thank you sir. That. That was all from answer. I’ll come back. Thank you.
Operator
Thank you. Participants with questions may enter star followed by one on the handsets. The next question is from the line of Rahul Agarwal from Ikigai assets. Please go ahead.
Aasim Bharde
Thank you for the follow up question. Just referring to the other expenditure number in the quarter is 390 crores. And this number was similar in third quarter also despite 25% volume growth on QQ basis. Just wanted to understand if there is any one off onetime adjustment to this number.
P. C. Somani
No, nothing specific.
Aasim Bharde
Sir. This number generally in fourth quarter goes up because of you know higher volumes. So hence I was wondering if there is any adjustment which is done on any management.
P. C. Somani
This other expensive number consists of either repairs or the advanced publicity which was controlled right from quarter three itself when this year was not doing well. So no inflation or no increase in those kind of figures.
Aasim Bharde
Okay. So publicity was 125 crore last year. So it’s basically flat Y what you’re saying
P. C. Somani
This year it is 98 crore only.
Aasim Bharde
Thank you so much. Thank you.
Operator
Thank you. The next question is from Darshita from tsp. Mutual fund. Go ahead and thank
Analyst
You for the opportunity so I wanted some understanding on the depreciation we had already capitalized up to the cash outflow when we see in the second half is roughly 566 crores due to investments which was about 814 crore as of FY26 which is a 250 odd crores of increase in the capex but the depreciation to that extent seems to be very high the depreciation increase in the second half seems to be very high what could be the reason behind this?
Shri M. P. Taparia
You have to see the last year capital working progress which was more than 400 crore with data also has got capitalized this year and our closing work in Progress is only 136 crore so when you look at. You have to look at the. Because whatever payments have been made previous years and the work in progress also get capitalized.
Analyst
Got it? Okay and then this year we believe it will further go up with a thousand odd crores
P. C. Somani
Also separately,
Analyst
Right? No, no. Even if I take into account Waban the depreciation entry seems to be higher than a normal like a usual number
P. C. Somani
But total addition TO assets is 1400 crore this year
Analyst
Including what? 1400 crore would also include. Yes, got it. Okay great. Thanks. Thanks a lot.
Operator
Thank you the next question is from the line of Ritesh Shah from Investec Capital Please go ahead
Aasim Bharde
Yeah hi sir congratulations on good set of numbers sir, few questions sir how should we understand PVC rise in prices? Resin made via carbide root and resin made Resin which is made by ABC it means BCM root
Shri M. P. Taparia
They make PVC and PVC make the product so there’s no difference for you Suppose some carbide maker PVC the VCM containing more than 1% then people don’t purchase the good materials for use of partying PC5 majority of them make a carbide PVC it mean VCM content less than 1% so less than 1% visum content VC there is no issue compared to that by relation we don’t see any problem
Aasim Bharde
Sure sir that helps
Shri M. P. Taparia
Produce by DCM for last more than 34 decades in India
Aasim Bharde
Okay that is helpful sir second is any update on our windows and profiles business that is one and secondly anything on the gas piping side? I think we did receive an order on electrofusion fittings from Mahars Natural Gas Ltd. A while back so how are both this business is actually doing? Sir,
Shri M. P. Taparia
Our plant is started we started selling in the month of March already and gas pipe we not only supply the pipe we supply the fitting also. We are the only company as on today who supply the pipe electrofusion fitting required for carrying pipe natural gas. We got order from three, four gas companies and more orders under negotiation. So that will meet the requirement for carrying the pipe under the ground and above the ground. We make pre aluminium push it back. There’s also we issue order that also will be the requirement of handling the nature.
Yes,
Aasim Bharde
Sir. How big can this business be for us? The gas piping business?
Shri M. P. Taparia
We don’t know how big the company will buy. I. We can’t say took away complete recycling.
Aasim Bharde
How much is our capacity over here?
Shri M. P. Taparia
We can be 10,005 per month actually. But that is spread out nine plants. So depend on which plant they will place order accordingly we may supply them. We can supply daily 1000 ton monthly.
Aasim Bharde
Okay, okay. I’m sorry. Windows and profiles. Sir, have we launched it on a Pan India basis or is it only in a few states? And what is the capacity over here? And how do we see this growing
Shri M. P. Taparia
Up and NCR
Aasim Bharde
Only Up and ncr. Okay. And sir, how much is our capacity over here?
Shri M. P. Taparia
Around 10,000 window per month.
Aasim Bharde
Sure. This is helpful sir. Thank you so much. Thank you.
Operator
Thank you. Participants with Questions may enter STAR and 1. Our next question is from the line of Praneet Pomesetti, an individual investor. Please go ahead.
Aasim Bharde
Hi. Thank you for the opportunity. So I understand that it is a great performance. I was wondering in terms of consolidation of the market, how have you seen the organization of the overall market? And in terms of CPVC also I think Astral had very lofty goals in terms of dominating at much higher rate. So could you explain how are you seeing the Astral yet entering cpvc? And how is it? How are you facing competition on the ground versus an organization of the market? And how has government space expanded in the market?
Shri M. P. Taparia
There are many suppliers in our country. I don’t follow what we want to ask. We have a little suppliers. Sorry, I think I
Aasim Bharde
Didn’t clear. My question is about talking about the market share. How are Supreme Road in terms of market share in its CPVC versus the other pricing divisions? And
Shri M. P. Taparia
We don’t know market share. Company in the CPE market. We know we don’t know
Aasim Bharde
What about other segments rather than CPVC in the piping division?
Shri M. P. Taparia
Maybe 12 to 13%.
Aasim Bharde
Do you have any goals in terms of expanding it from the 13% mark to 20%? Let’s say like what? What is the company doing in terms of expanding the market share? We
Shri M. P. Taparia
Are planning to grow?
Aasim Bharde
Like what are the Ideas internally that you have thought in terms of which market share would you like to grow to from the 13% levels today
Shri M. P. Taparia
Putting more capacity, go on making offering more system. Go on making more stu in each system. Go on appointing distributed dealer, go on working in the export market. So there are so many when you do that and we have done all this, all the revenues.
Aasim Bharde
By let’s say 2032 or 2030 like in next four years. What kind of market share targets does the management have today?
Shri M. P. Taparia
We’re working more now first how to increase our export business. Our export business plastic flat system is only $5 million. We are working first how to reach $50 million very shortly. So our top focus today to grow big way in export market and definitely grow big way in Indian market also. Plastic piping system. We have put on a great growth path.
Aasim Bharde
Anushit. Sir. But in terms of exports, like in terms of competition because the pipe is usually mostly air volumetric rather than weight. Won’t it be difficult to compete in the traditional market? Like what are the markets we’re looking to compete in?
Shri M. P. Taparia
I don’t say pipe, I say piping system.
Aasim Bharde
Okay, so it doesn’t
Shri M. P. Taparia
Only pipe between us.
Aasim Bharde
Okay, so in terms. So you’re not interested in this pipes exposure fittings part of it is it? Okay, so and which mark, which geographies are we targeting for today? Like in the short term like
Shri M. P. Taparia
Throughout the world.
Aasim Bharde
Okay, but like for the 500 million segment are we looking at Middle East, Africa? Like we’re looking further also
Shri M. P. Taparia
No Middle east. Very small market for us. We want to put other market also which we are operating for many years now. We are making many parts of the world. Let us exceed. Then we come back to you. Today only $5 million. What is nothing. Get to talk.
Aasim Bharde
So when we are like so. Can we ask you
Operator
To return to the question queue, sir?
Aasim Bharde
Yeah, sure. Thank you.
Operator
Thank you. The next question is from the line of Ritesha from Investec. Please go ahead.
Aasim Bharde
Sir, this question is specifically on Nulsa General. What we understand is there is a CAG audit which is going on in a few states in the country. Sir, how do you read into this? Is that the reason why you indicated Nulci gel will actually flow? Or is there any other way to actually read it? Actually
Shri M. P. Taparia
Audit is going on. That’s why he says that there’s a CAD audit for the nature. That
Aasim Bharde
Is why we are talking less growth for nature. That’s not the case.
Shri M. P. Taparia
I’m not aware. What is. That? Today only we
P. C. Somani
Don’t think
Shri M. P. Taparia
So. That can be the reason.
Aasim Bharde
Okay. Any other reason why the government is probably going slow? Sir?
P. C. Somani
No. Unless state government participate and they release their part of contribution, the central government is not releasing the funds. So still we don’t see the funds coming to the ground.
Shri M. P. Taparia
Anyway. We are a small player in the water supply stream. But as you are aware in last two years government when the budget was moved to this parliament they announced 67,000 crore expenditure. And for last two years every year 67,000 they announced and they spent only 22,000 crore. So the question to our mind is because the state government has to make they share government contribute in the central government. Is the money.
Aasim Bharde
Okay sir, just for understanding if earlier the project was 100 rupees, how much was the contribution from the central government?
Shri M. P. Taparia
Yeah, we have no idea. You can check me. Center government, dear friend.
Aasim Bharde
Okay sir, thank
Shri M. P. Taparia
You. Thank you so much.
Operator
Thank you. The next question is from Bhavan Vitlani from SBI mutual fund. Please go ahead.
Aasim Bharde
Good evening and congratulations for a good set of numbers. So question is on like you’ve added five manufacturing facilities over the last 12 months. So you added five manufacturing plants over the last one year. Could you talk about the how closer you’ve got in terms of customers and the lead distance reduction that you’ve been able to get because of these new plants? And is there a numerical number in terms of savings that on the logistics cost that you’ve been able to get because of the new manufacturing facilities where you move closer to the customer?
Shri M. P. Taparia
We meet very good to the customers. The whole idea is the customer can work with our go down, our plant which is a go down.
Aasim Bharde
So is there a savings that numbers in terms of percentage that you’ve been able to get by moving closer to the customer, 1 or 2% saving that you’ve been able to get?
Shri M. P. Taparia
The whole idea is very better service to your customer
P. C. Somani
So it becomes more affordable to the customer. We are not taking the saving into our account but we are becoming more competitive and more efficient.
Aasim Bharde
Sure. So the second part is you’ve added more SKUs as you mentioned, there are some white spaces that you said that you’ve been able to close that. Could you talk about the number of SKUs you’ve added and some of the white spaces which were there in terms of that those products were not there. You’ll be able to introduce this year
Shri M. P. Taparia
We were 15,600 plus some SKU and we were 45 system. We are going already more and more SKU in this 45 system and we are going to be one to more system this year.
Aasim Bharde
Got it. Was there any gap that. Because some of the checks that we do, we understand at high rises is an area where there was some gap in products. Have you you’ve been able to close those product gaps?
Shri M. P. Taparia
We don’t have any gap now. Nothing, no gap.
Aasim Bharde
Okay, Now when you compare supreme with vis a vis and astral and specifically in the cpu, PVC segment or Rashidwal, which areas have you identified where there are spaces now and that you’ve been working to close those gap?
Shri M. P. Taparia
There are so many parts of countries available.
Aasim Bharde
This last part is. So you’ve been able to on a long period average you’ve been able to grow around 13%. So if one looks at the year going ahead in your view what’s the kind of volume growth that you believe you should be able to achieve? And we understand there have been uncertainties which always have been
Shri M. P. Taparia
No uncertainty. We look forward to achieve 2 million ton.
Aasim Bharde
Okay. In the current financial year.
Shri M. P. Taparia
No financial what you say? What is your dream? So I have dreaming to achieve 2 million ton.
Aasim Bharde
Okay,
Shri M. P. Taparia
So a long way to go.
Aasim Bharde
Understand sir, and on a profitability basis what in your view is a sustainable EBITDA or EBIT margin that you see is that one should look at on a sustainable basis. We understand some quarter there are inventory losses, some quarter inventory gains but if one finds that out, what’s the sustainable level that one should expect?
Shri M. P. Taparia
We must get returned more than 25% on the capital employed. So we are earning more than 25% year after year for last 18 years. 18 years we are seeing that our return on airways capital improved is more than 25% and that is the only criteria we follow in our company.
Aasim Bharde
Understand? Sure. Yeah. So those were my questions. Thank you so much.
Operator
Thank you. The next question is from the line of Varun from 361 Capital. Please go ahead.
Aasim Bharde
Yeah, hi sir, thank you for the opportunity. This one is check by when will the greenfield project be operational?
P. C. Somani
Project? No, no, we have to yet to start the works all the four plants what we are now talking should be operational by end of March 27th.
Shri M. P. Taparia
Not fully partly operation under two years. Now we shall we will the land in our hand so we start your work. So it will be definitely some capacity will be available this year and fully ready in next two years.
Aasim Bharde
Okay. And sir, on the realization front, since last year, you know the PVP price on an average for the full year was less than around 70 rupees per kilogram and now expectation is slightly higher, right? I mean 75 to 80 rupees. Then is it possible that there will be a better margin expansion than what we have guided around 14, 14.5%. Because our realization will be better going forward.
Shri M. P. Taparia
We don’t only PC we make CPVC also. We make POL also. We make engine road HD also. So we believe the 14, 14 and a half percent margin will give us return in excess of 25% or capital import
P. C. Somani
Sustainable.
Shri M. P. Taparia
We we work on a sustainable business sustain earn 25% on the money. What we know questions. 25%. We go next funding.
Aasim Bharde
So. So on the PVT segment like like price plastic price segment. Like overall what is the realization that we a proposed is PVC you know kind of stabilize around 75 rupees per kilogram. Like is there any kind of. Like
Shri M. P. Taparia
There are several product in PVC also. So every product got different margin basically based on the investment what we have made to make that product. There were several type of made by any company. Several, several application also. So there is no fix formula. It depend on the money what we invest in that business. We equally price our product. It’s quite complex.
Aasim Bharde
Okay. Okay sir. Thank you. Thank you.
Operator
Thank you. Our last question is from the line of Karan Bhattalia from amsec. Please go ahead.
Rahul Agarwal
Hello. Hi sir. Am I audible?
Aasim Bharde
Yeah please.
Rahul Agarwal
Yeah. Sir you mentioned that the PVC volume decline for the entire year was 9% for FY26. You know can we further get into decline for ultra agri and plumbing at the industry level?
Shri M. P. Taparia
Not define our company. I said the country has declined, not PVC. I said plastic piping business had a degrowth of 9% in the country. Now only the producer can supply. We know we don’t have idea.
Rahul Agarwal
Right. And you mentioned a 15 to 17% volume growth in piping. So that includes Waven as well. Right. And so one last question. We had some outstanding 14 million kind of rupees spending from the JJM mission. So are we yet to recover that many recovered? Okay. Okay. Thank you. Thank you. That’s it from my end.
Operator
Thank you ladies and gentlemen. That was the last question. I now hand the conference over to the management for closing comments.
Shri M. P. Taparia
We are very thankful to ask the analyst very interesting question. And we thank very much Dam Capital for providing for support and assisted to us. And very much thankful to Mr. Ashley Mazu. Thank you very much sir. Thank you.
Operator
Thank you. On behalf of Dam Capital Advisors Ltd. That concludes this conference call. Thank you all for joining us. And you may now disconnect your lines. Thank you.
Shri M. P. Taparia
Thank you.