Supreme Petrochem Ltd
NSE:SPLPETRO
Supreme Petrochem Ltd
Supreme Petrochem Ltd, a stalwart in India's petrochemical industry, has etched its mark as a formidable player specializing in the production and distribution of polystyrene and related polymers. The company, a venture formed through a collaboration between Supreme Industries Limited and the Rajan Raheja Group, began its journey in the early 1990s. Its primary operations revolve around the manufacturing of polystyrene, a versatile plastic used widely across various sectors including packaging, consumer goods, and appliances. Located strategically in Maharashtra, India, Supreme Petrochem leverages its proximity to essential raw materials and ports to streamline operations and logistics, ensuring efficiency from production to delivery.
The company's financial engine is driven by its comprehensive value chain, starting with the processing of styrene monomer, a key feedstock. With a robust vertical integration, Supreme Petrochem manages to keep costs contained while maximizing output. Its state-of-the-art facilities produce a range of polystyrene products, from standard grades to high-impact and other specialized variants. These products cater to diverse customer needs, from rigid packaging solutions to more complex industrial applications. Additionally, Supreme Petrochem has expanded its portfolio to include expanded polystyrene and other value-added products, thus broadening its market reach. With a robust infrastructure and continuous innovation, the company not only sustains but thrives, capitalizing on emerging trends in material science and environmental sustainability within the petrochemical sector.
Supreme Petrochem Ltd, a stalwart in India's petrochemical industry, has etched its mark as a formidable player specializing in the production and distribution of polystyrene and related polymers. The company, a venture formed through a collaboration between Supreme Industries Limited and the Rajan Raheja Group, began its journey in the early 1990s. Its primary operations revolve around the manufacturing of polystyrene, a versatile plastic used widely across various sectors including packaging, consumer goods, and appliances. Located strategically in Maharashtra, India, Supreme Petrochem leverages its proximity to essential raw materials and ports to streamline operations and logistics, ensuring efficiency from production to delivery.
The company's financial engine is driven by its comprehensive value chain, starting with the processing of styrene monomer, a key feedstock. With a robust vertical integration, Supreme Petrochem manages to keep costs contained while maximizing output. Its state-of-the-art facilities produce a range of polystyrene products, from standard grades to high-impact and other specialized variants. These products cater to diverse customer needs, from rigid packaging solutions to more complex industrial applications. Additionally, Supreme Petrochem has expanded its portfolio to include expanded polystyrene and other value-added products, thus broadening its market reach. With a robust infrastructure and continuous innovation, the company not only sustains but thrives, capitalizing on emerging trends in material science and environmental sustainability within the petrochemical sector.
Revenue Decline: Operating income for Q3 was INR 1,265 crores, down 10% year-on-year, mainly due to a steep drop in styrene monomer prices.
Margin Pressure: Operating EBITDA margin fell to 5.47% for Q3, with net profit at INR 30 crores, reflecting softer spreads and lower demand earlier in the year.
ABS Plant Disruption: The new ABS plant, commissioned in September, was shut down in December due to critical equipment failure. There is no timeline yet for restarting operations.
CapEx & Financial Strength: Company remains debt-free, funding all capital expenditure internally, and reported INR 463 crores in investable surplus as of December 2025. Maintenance and growth CapEx for the coming year is estimated at INR 250–275 crores.
Demand Trends: EPS and polystyrene demand rebounded in December, with market growth of about 6% YoY. Management expects the current quarter (Q4) to be stronger due to seasonal OEM demand and price stabilization.
ABS Outlook: Full-year volume growth target of around 10% is contingent on ABS plant resuming operations, with ABS expected to contribute about 7 percentage points if fully operational.
Export Expansion: Export volumes have improved versus last year, though European demand remains erratic. Further growth may depend on the India-EU FTA.
Operating Stability: Trading volumes as a share of total turnover declined slightly to 20%, and the company is focused on expanding value-added compounds to cushion volatility.
