Operator
Ladies and gentlemen, good day and welcome to Supreme Industries Q4 FY26 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 * and 0 on your touchtone telephone.
Please note that this conference call is being recorded. I now hand the conference over to Mr.
Aasim Bharde from DAM Capital Advisors Limited. Thank you, and over to you, sir.
Aasim Bharde
Thank you, Farrah, and good evening to everybody joining in for Supreme Industries Q4 and FY26 post-earnings call. We have, as usual, the senior management of the company, led by Mr.
M. P.
Taparia, Chairman and Managing Director, Mr. P.
C. Somani, CFO, and Mr.
R. J.
Saboo, VP, Corporate Affairs and Company Secretary. Thank you, and over to Mr.
Taparia for his opening comments.
M.P. Taparia
Thank you, Shri Aasim. I am M.
P. Taparia, Chairman and Managing Director of the Supreme Industries Limited.
I, along with my colleague, Shri P. C.
Somani, CFO, and Shri R. J.
Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the audited standalone and consolidated financial results for quarter and year ended 31st March 2026. The standalone results and the consolidated results are already with you.
I give brief on company product operating performance and other highlights. The company sold 753,907 ton of plastic goods and achieved revenue from operation of ₹11,218 crore during the year under review, against sale of 674,510 ton and revenue of ₹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 ₹1,654 crore and ₹954 crore, respectively, as compared to ₹1,552 crore and ₹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 the year ended 31st March 2026, as compared to previous year, has been as under: Plastic piping system business grew by 14% in volume and 11% in value term. Industrial products segment business degrew by 1% in volume and 3% in value term.
Packaging product segment grew by 5% in volume and 3% in value term. Consumer products segment business grew by 4% in volume and degrew by 1% in value term.
The overall turnover of value-added product increased to ₹4,677 crore as compared to ₹4,060 crore in the previous year, achieving growth of 15%. The company proposes to commit capital expenditure in excess of ₹1,000 crore during the year, including carry-forward commitments from the previous year.
Capex plan includes new greenfield project for plastic piping system at Patna in Bihar, Jammu in Jammu and Kashmir, and [Gadegaon?] in near Jalgaon in Maharashtra, and a new facility for material handling product at Malanpur, in Madhya Pradesh.
The proposed and committed capex is principally aimed at strengthening manufacturing capabilities, expanding capacity, enhancing product offering, and advancing sustainability initiatives. The planned capital expenditure is expected to enhance the company's annual installed capacity by approximately 110,000 metric ton, taking the total installed production capacity to around 1.35 million ton per annum.
The financial year 2025-26 was a challenging yet eventful year for the company, marked by volatility in raw material prices, prolonged unseasonal rainfall, subdued infrastructure spending, and heightened global geopolitical uncertainties. Volatility in PVC resin prices, including frequent and sharp price movement during the year, significantly impacted channel dynamics, while extended monsoon condition affected demand, particularly in the agricultural segment.
Despite these 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 leadership position, aided by continued expansion of value-added product, launch of new system, and capacity augmentation across various location.
The company further expanded its portfolio by introducing new SKUs and systems catering to diverse application and aligning with the evolving requirement of a growing economy. With a wider range of electrofusion and olefin fittings, the company entered the industrial piping 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 Har Ghar Jal initiative and the expansion of piped natural gas infrastructure for household usage. The company continued to implement a prudent and well-defined business strategy anchored on five key pillars: innovation, smart manufacturing, strong relationship with the channel partner, effective customer service, and deeper reach across the country.
Company happy to announce that its new product segment in window and door division at Kanpur Dehat 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.
Industrial segment, however, continued to witness demand slowdown from OEM customer. Export performance witnessed moderation due to geopolitical developments and trade-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 would enable the country to boost export of manufactured goods. Looking ahead, the Indian economy remains well positioned for sustained growth driven by domestic consumption, infrastructure development, and policy support.
With its 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 its stakeholders. This is a brief and overall summary for the quarter and year months ended under reference.
Thank you for your patience. Now, I and my colleague, Shri P.
C. Somani and Shri R.
J. Saboo, are available to reply to your various queries raised by all of you.
Thank you very much.
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session.
Anyone who wishes to ask a question may enter * followed by 1 on their touchtone telephones. If you wish to remove yourself from the queue, you may enter * and 2.
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 Ikigai Asset. Please go ahead.
Rahul Agarwal
Hi, sir. Good evening.
Thank you for the opportunity.
M.P. Taparia
Sir,
Rahul Agarwal
first question is 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?
M.P. Taparia
Full year, there may be hardly any inventory gain. In earlier quarter, there may be inventory loss.
Rahul Agarwal
Yes, sir. I'm aware of that.
M.P. Taparia
For full year, we don't see any inventory gain for full year. In this specific fourth quarter, there may be inventory gain, net-to-net, maybe around ₹70 to ₹80 crore.
Rahul Agarwal
Sir. Got that.
Sir, 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?
M.P. Taparia
Packaging side, we have purchased a land at near JNPT. The process is going on.
Once the land comes in our possession, then we will announce putting a facility to make packaging product, which is close to JNPT area. It must be marked for export market.
Rahul Agarwal
Sir, how much would be the capex there? What kind of capacity we think we should put?
M.P. Taparia
Let the land come in our hand, then we will talk to you. Wait.
Rahul Agarwal
All right, sir. Last question, sir, what was the growth for CPVC pipes and fittings?
M.P. Taparia
Last year, we had a growth of around 38%.
Rahul Agarwal
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 Shravan Shah from Dolat Capital.
Please go ahead.
Shravan Shah
Hi, sir. Thank you.
Sir, now, how are we looking at the overall volume and piping volume for FY27?
P.C. Somani
Piping volume for 27?
M.P. Taparia
FY27, we anticipate growth between 15%
Shravan Shah
to 17%. 15% to 17% in piping.
Overall?
M.P. Taparia
Overall, around 12% to
Shravan Shah
13%. 12% to 13%.
12% to 13%. For margins, sir, how now we look at the margins?
M.P. Taparia
Margins will be between 14% to 14.5%.
Shravan Shah
14.5%. Okay.
M.P. Taparia
14% to 14.5%.
Shravan Shah
14.5%, sir, no?
M.P. Taparia
14% to 14.5%.
Shravan Shah
Okay, 14% to 14.5%. Got it.
Sir, now, given the PVC prices so much volatility that we have seen, ₹47, ₹48 up in the January to March, and then again ₹32, ₹33 down. How one can look at, do we still see the volatility to continue, or now it seems to be stabilizing?
Now, in last 10, 15 days, how are we seeing the channel inventory or the demand, because such a volatility is there, how it is impacting the demand?
M.P. Taparia
First, polymer prices are a commodity product. They remain volatile.
This is not a new situation. Last year was typically too much volatility, but otherwise, price remains always volatile.
It can't remain steady price throughout the year. Never remained.
It never remained. Now, the PVC prices have come down quite a lot between 5th April to 21st April.
The prices have come down by ₹34, nearly 30% price went down. Prior to that, in the month of March, the price went up by 32%.
That price increase has been corrected in the month of April. Now, the inventory also at the distributor level, retail level are mostly cleared.
We do not anticipate now any price reduction also, because rupee is getting weaker. Rupee is around 94.5.
Our rupee has become quite weaker, and we are too much import dependent. We do not see any price erosion now in PVC price for time being.
Shravan Shah
Got it, sir. Lastly, sir, this 110,000 capacity that we are adding, out of that, how much will be in the piping segment?
This entire 110,000 will be added by FY27? That
M.P. Taparia
will be added by FY27, for sure.
Shravan Shah
Okay. Out of that?
M.P. Taparia
100,000 will be in piping sector only.
Shravan Shah
Okay. The entire would be in the piping, you are saying?
M.P. Taparia
100,000 in piping sector, 10,000 will be mostly in material handling system.
Shravan Shah
Okay. Got it.
Got it, sir. Lastly, for this Q1, specifically, do we see any inventory gain or loss?
M.P. Taparia
There may be some inventory loss. There can't be gain now with price falling by ₹34, how can there be gain?
There can't be.
Shravan Shah
I understand. Because the previous hike was—
M.P. Taparia
How can I find a gain and the prices are dropping, there can't be inventory gain. Got it.
Shravan Shah
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.
Keshav Lahoti
Hello. Hi.
M.P. Taparia
Thanks
Keshav Lahoti
for the opportunity. Sir, my first question is can we bifurcate in your view the Q4 volume growth?
We believe channel inventory has improved in Q4. Possibly, what would be the growth because of end demand and because of channel inventory?
M.P. Taparia
I don't know. Can you reply, Somani?
P.C. Somani
It is not feasible to just quantify in that way.
M.P. Taparia
There are more than 50,000 dealers, we don't know now what they do. Not possible, dear friend.
Keshav Lahoti
Got it.
M.P. Taparia
Not possible. Tell me.
One
Keshav Lahoti
Hello, am I audible?
M.P. Taparia
Yeah. We are audible.
Keshav Lahoti
Yeah. One last question from my side.
Sir, can you give a sense on how channel inventory had moved in Q4 quarter month-wise, and lastly, how is the channel inventory in April now?
M.P. Taparia
We have no idea, friend. We have no idea, dear friend.
Keshav Lahoti
Got it. Thank you.
M.P. Taparia
That's it.
Operator
Thank you. The next question is from the line of Praveen Sahay, PL Capital.
Please go ahead.
Praveen Sahay
Hi. Thank you for opportunity.
My first question is related to the demand, especially for the agri, as we had seen a lot of fluctuation in the PVC resin prices, and we also understand the Q4 and Q1 is where the agri demand comes in. Do you see any impact on the agri demand, especially because of a PVC resin price fluctuation in the Q4?
M.P. Taparia
PVC resin prices, not Q4, demand start only from Q1. Q4, demand was impacted in the month of March.
Now Q1, now we are entering Q1 only. Now demand has started full force.
There is no issue. Big demand now coming from agricultural segment.
Praveen Sahay
With the price correction, demand has picked up in the agri?
M.P. Taparia
Price have come down very low, and agricultural sector, they don't keep inventory earlier. Normally, they don't keep.
Now the price are quite low, demand will come very briskly.
Praveen Sahay
Okay. Also, with these fluctuation in the PVC resin prices, have you seen any impact on the plumbing, especially some delay from the builder side or the project side of business in the Q4?
M.P. Taparia
You can't complete building without plumbing.
Praveen Sahay
Okay. Plumbing, no.
There is
M.P. Taparia
no demand disruption from the user,
Praveen Sahay
there is no demand disruption. Okay.
Sir. One clarification on your 38% of a YoY growth in the CPVC, is that of a volume or a value?
M.P. Taparia
That's volume only. Value, we don't know.
Praveen Sahay
This is a volume growth in the CPVC.
M.P. Taparia
For the full year.
Praveen Sahay
For a full year. Can you give any indication how much is a contribute to our total piping business?
M.P. Taparia
No idea.
Praveen Sahay
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 Sneha from Nuvama. Please go ahead.
Hi, thanks for the opportunity. Just a couple of questions from my end.
What would have been the industry growth in FY26? Any number there, or maybe even Q4 would be helpful.
M.P. Taparia
Plastic piping system?
Yes, sir.
M.P. Taparia
We are told by raw material producers that it was -9%.
-9% was FY26 growth?
M.P. Taparia
FY26, there is a volume degrowth by 9% in plastic piping system in the country. Wow.
Wow, got that, sir. How are things looking up from here?
Anything from polymer suppliers or your say, that how is industry likely to grow in FY27? Any uptick that you've seen in Nal Se Jal?
M.P. Taparia
Ma'am, I'm not clear your question. I'm not clear to me.
What you asked?
What is the kind of growth at an industry level that we're expecting in FY27? Any uptick that you've seen in Nal Se Jal scheme, because there were very recently some allocations made?
M.P. Taparia
Industry growth, yeah, you can ask Reliance raw material producer, but they told us that they anticipate 8% growth this year.
Anything on Nal Se Jal, sir? Recently, there were allocations.
Have we seen any pickup or government spending starting to take place, any fund releases?
As of now, we don't see any uptick on that. You see, this Nal Se Jal depends upon the state and central government cooperation.
Unless Jal Jeevan, yeah.
M.P. Taparia
Jal Jeevan can depend on the state supporting state has to contribute also, no? Unless the state contribute, Center didn't release the money.
Jal Jeevan, we are not sure. Up till now, it is never happened as per the declared policy of the Government of India, central government.
Last 2 years also, whatever budget they announced in February, 1st February, they could spend only 1/3 amount. We are not sure this year also.
Understood, sir. Lastly, on your capex
Operator
I'm sorry, ma'am, can we ask you to return to the question
queue?
Operator
There are other participants waiting. Thank you.
The next question is from the line of Sonali from Jefferies. Please go ahead.
Sonali Salgaonkar
Sir, thank you for the opportunity, and congratulations on a good set of numbers. Sir, my question is about the Middle East impact on the polymers.
You did mention in your press release that the impact on polyethylene products is much higher as compared to PVC. 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?
M.P. Taparia
No, this Gulf impact would be impact all the polymers, because after all, they are not only making polymer, they are also supplying feedstock for the polymer to the plant based in Far East Asia, Southeast Asia. The producers are all affected.
It going to impact to the polymer capacity worldwide big way.
Sonali Salgaonkar
Sir, 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 revoked the import duty for a period of 3 months, or is it because globally the supply of PVC has increased over the past 1 month?
M.P. Taparia
Import duty becoming zero doesn't improve the volume of production, no?
Sonali Salgaonkar
That's right. I'm asking of PVC resin prices.
Production, no?
M.P. Taparia
The point is that PVC is not so much affected, as huge volume is coming from China. China production is not based on crude oil.
Their manufacture based on coal. Coal to PVC, China is a very large producer, and it is not affected by any Gulf disruption.
China was a big player in India, now they become bigger player. Because of that, PVC is not affected in India.
We are getting big supply from China.
Sonali Salgaonkar
You foresee the prices of PVC to go down further, like we have seen in the past 2 weeks? Is that understanding
M.P. Taparia
It will not go up very much. There is bound to go up, but will not go up the way the ethylene PVC has gone up.
Sonali Salgaonkar
Understood. Got it.
Very helpful. Thank you, sir.
Operator
Thank you. The next question is from the line of Tejas Pradhan from Citi Group.
Please go ahead.
Tejas Pradhan
Hi, sir. Just on the notes to accounts, the note number six, you have mentioned the change in labor code provisionings.
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. 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. This is a net full-year impact.
Earlier, in the Q3, we have estimated based on our rough working, but based on the actual valuation report which we have made now March '26, it is a full-year impact. So ₹15.38 reduced to ₹14.4.
Tejas Pradhan
Understood. Thanks.
Secondly, on the industry, 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? If you can maybe extend that to April as well?
Between these three periods, how were the trends for both us and the industry?
M.P. Taparia
We have told you the annual growth expectation, we have already told you, no?
P.C. Somani
Month-on-month volume we don't declare or we don't discuss. It is on quarter-on-quarter we always give the data.
April is not yet
M.P. Taparia
Annual growth we already admit to you that we anticipate to grow 15% to 17% in piping business.
P.C. Somani
For the current year, yeah.
M.P. Taparia
For this year.
P.C. Somani
You wanted April, which is not feasible.
M.P. Taparia
April is still not over, now.
P.C. Somani
Anyway, we do not give month-to-month figure also.
Tejas Pradhan
Sure, sure. Any qualitative sense would have also been great, but depending on what you want to disclose, yeah.
P.C. Somani
No, as the year has begun with this still the geopolitical conflict continued, really you can't think of a better things today. Yes, let us hope for the better situation to come.
Tejas Pradhan
Sure, sure. Thanks a lot.
Operator
Thank you. The next question is from the line of Bhavin Rupani from Investec.
Please go ahead.
Bhavin Rupani
Hi, sir. Thanks for the opportunity.
First question is related to, sir, PVC. What is our average procurement cost of PVC, which is standing as inventory as on 31st March?
Our what
M.P. Taparia
inventory requirement?
P.C. Somani
No, no. Cost of the inventory, what is you are carrying inventory cost.
You see, these are the classified information. We don't really disclose those kind of things.
Bhavin Rupani
All right. Sir, in terms of days, what would be the number of days of PVC inventory do we have as on 31st March, sir?
M.P. Taparia
We must keep our plant adequate quantity so the plant should go on running, no? We buy some local and import both, because local is not adequate.
Import will be slightly more than local. Local, you can get weekly also.
Import, you have to keep in pipeline. We don't take any prudent decision.
That our plant should not be short of raw material. We must have PVC available.
India imports 68% requirement. 32% only supply locally.
When double the requirement we make from import, and import always takes time, no? We have to keep always the inventory in plant or warehouse, so that we are responsible suppliers.
We are never failing in supply to our customers. We won't take any decision
Bhavin Rupani
in prudent
M.P. Taparia
manner.
Bhavin Rupani
Got it, sir. Sir, just second question on Wavin.
What would be our volumes from Wavin during the quarter?
M.P. Taparia
How much?
P.C. Somani
Wavin.
M.P. Taparia
Wavin, our capacity is annually 70,000 ton, and we generally anticipate that overall we will be achieving 70% of our capacity. Wavin will contribute around 48, 49,000 ton in our business volume this year.
P.C. Somani
Wavin plants are running normally from February onwards. See, initial 3, 4 months it took time to revamp and refurbish everything.
From February onwards, they are in normal path.
Bhavin Rupani
What is the contribution in terms of volume during Q4?
Operator
Sir, could you return to the queue? Bhavin, sir, could you return to the queue, please?
Bhavin Rupani
This is just a follow-up. Just a follow-up.
P.C. Somani
About 4,000 a month, and from February, March if you look at, for the quarter it could be around 10,000 tonnes.
Bhavin Rupani
Got it, sir. Clear.
Thank you.
Operator
Thank you. The next question is from the line of Girish Choudhary from Avendus Spark.
Please go ahead.
Girish Choudhary
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 the small and mid manufacturers coming back strongly to the market?
M.P. Taparia
When we are running the plant, India is a big market.
Girish Choudhary
Okay. In terms of the raw material availability challenges, did you hear anything about these small manufacturers facing some issues and
M.P. Taparia
We are not a small-scale producer, but we are not aware that anybody is not getting raw material. PVC is adequately available.
Girish Choudhary
Got it. Got it.
My second question is on the windows business. 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?
M.P. Taparia
Window. At full capacity, one year how much we can sell?
R.J. Saboo
Once we achieve full capacity utilization, then it should be about ₹200 to ₹250 crore annual revenue.
M.P. Taparia
₹250 crore annual revenue will get, because we have put a small capacity. We may get ₹250 crore revenue annually when we start running the plant fully.
Girish Choudhary
Okay. Can we assume similar margins for this business as well?
Margin will be better. It's a customized window.
M.P. Taparia
It's profitable. We have invested more than ₹200 crore in that business.
Margin will be maintained so that we get return on the investment, dear friend. Got
Girish Choudhary
it. Thank you, sir.
Operator
Thank you. Our next question is from the line of Durgesh Shukla from InCred Capital.
Please go ahead.
Durgesh Shukla
Hello. Yeah.
Hello, sir. Thank you for the opportunity.
Actually, my question was similar to that labor law code provision, which has already been answered. Thank you.
No more from my side.
Operator
Sure, thank you.
Durgesh Shukla
Thank you.
Operator
The next question is from Shubham Shukla from Voyager Capital. Please go ahead.
Hi,
Shubham Shukla
good evening, everyone. Hi, this is Shubham.
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 60%, 70% ballpark range, while capacity additions are still ongoing. I wanted to ask what is an ideal utilization level, and how do you define lower and higher utilization bands both for company and more broadly for the industry?
M.P. Taparia
Normally, we consider if we are able to use 70% or 75% is a best utilization, because during rainy season, demand comes down. Normally, we consider.
Worldwide, there is always 2, 3 months lean period. This is what we consider.
Depending on business situation, sometimes we may not get 75%, we may get 70% or 68%, something like that.
Shubham Shukla
Okay. Sir, 75% is the ceiling which we hit, and it doesn't go up more than that?
Most
M.P. Taparia
of the time and the business conditions are looking quite okay. If the rains remain only normal, no prolonged period of rainfall.
When there is prolonged period of rainfall, then business will be affected.
Shubham Shukla
Okay. All right.
Thank you.
Operator
Thank you. The next question is from the line of Utkarsh Nopany from Anand Rathi.
Please go ahead.
Utkarsh Nopany
Hi. Good evening, sir.
Sir, 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 Jal Jeevan Mission has not yet picked up.
Just wanted to know what has led to such sharp growth for us in the March quarter? Is it because of that channel refill?
No,
M.P. Taparia
I didn't say in March demand is falling due to price going down. I say price went up.
Utkarsh Nopany
Went up. That's why the demand
M.P. Taparia
In the month of March, the price went up so steeply, the farmer refused to buy the goods in the month of March. Now the price has come down, now the demand is normal.
Utkarsh Nopany
It
M.P. Taparia
went up by ₹37 a kilo, and then came down by ₹33 a kilo. Now demand is normal in agriculture, there is no issue.
Utkarsh Nopany
No, sir. For the March quarter, 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?
January, February,
M.P. Taparia
March is normally season of plumbing only. In January, March, demand for agri doesn't start big way.
Big way start only after the crops are harvested. That happens around 8th or 10th of April.
Then demand comes up fully.
Utkarsh Nopany
Okay. Sir, 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?
M.P. Taparia
Throughout the country, people who build their house, they require the plumbing. The people build the house in rural area and in big area also.
People keep on building houses. Up to Tier 6 cities, the houses are built.
For any house to function, you must have plumbing.
Utkarsh Nopany
Okay. Sir, lastly on the PVC resin price, sir, can you just specify what would be the current PVC resin price in the market right now?
Do you see any further pressure in the PVC resin prices in near future?
M.P. Taparia
Now current raw material price is around ₹81 a kilo. We anticipate that as rupee gone down, and prices will go up now.
Utkarsh Nopany
Okay. Thanks a lot, sir.
Operator
Thank you. The next question is from the line of Kumar Saumya from Ambit Capital.
Please go ahead.
Kumar Saumya
Hi, sir. Good evening.
Sir, couple of questions from my side. Am I audible, sir?
M.P. Taparia
I am very well listening. Please.
Yeah.
Kumar Saumya
Yes, sir. I just wanted to understand the raw material availability.
You said PVC is abundant. How is the situation on HDPE side, PP, polystyrene?
How are they currently available in the market?
M.P. Taparia
To our knowledge, all raw materials are available in India. Okay.
We don't see any problem any raw material which is not available.
Kumar Saumya
Got it. Got it.
Sir, secondly, sir, you said the volume for 4Q from Wavin is about 10,000 tonnes since the plant started from February onwards. Is it that the plant did not contribute before that, and this is the annual volume as well?
M.P. Taparia
Annually, we should get 40 50,000 ton from them.
Kumar Saumya
In FY26, how much was that, sir?
M.P. Taparia
Last year, we took over in the month of August, then we were revamping, we get normal position only from February. We might have got 10,000 ton in this quarter.
Now, for the full year, we anticipate we may get 48 to 50,000 ton this year. Got it.
Got it.
Kumar Saumya
Got it. Okay.
Sir. Thank you, sir.
That was all from my side. I'll come back in the queue.
Thank you.
Operator
Thank you. Participants with questions may enter * followed by 1 on the handsets.
The next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Rahul Agarwal
Thank you for the follow-up question. Just referring to the other expenditure number in the quarter is ₹390 crore.
This number was similar in third quarter also. Despite 25% volume growth on QoQ basis, just wanted to understand if there is any one-off, one-time adjustment to this number?
M.P. Taparia
No, nothing specific.
Rahul Agarwal
Typically, sir, this number generally in fourth quarter goes up because of higher volumes. Hence, I was wondering if there is any adjustment which is done on any line item.
See,
M.P. Taparia
this other expenses number consists of either repairs or the advertisement publicity, which was controlled right from quarter 3 itself when this year was not going well. No inflation or no increase in those kind of figures.
Rahul Agarwal
Okay. Publicity was ₹125 crore last year, it's basically flat YoY, is what you're saying?
M.P. Taparia
No, this year it is ₹98 crore only. For the year if you Yeah, yeah.
Rahul Agarwal
Acha. Okay.
Got it, sir. Thank you so much.
Thank you.
Operator
Thank you. The next question is from Darshita from DSP Mutual Fund.
Go ahead.
Darshita Shah
Hi. Thank you for the opportunity.
Sir, I wanted some understanding on the depreciation. The cash outflow when we see in the second half is roughly ₹566 crore due to investments, which was about ₹814 crore as of FY26, which is a ₹250-odd crore of increase of capex.
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?
M.P. Taparia
Ma'am, you have to see the last year capital work-in-progress, which was more than ₹400 crore. That also has got capitalized this year.
Our closing work-in-progress is only ₹136 crore. When you look at fixed assets, because whatever payments have been made previous years and the work-in-progress also get capitalized.
Darshita Shah
Got it. Okay.
Then this year, we believe it will further go up with a ₹1,000-odd crore of
M.P. Taparia
Wavin acquisition also is separately.
Darshita Shah
Right. No, no.
Even if I take into account Wavin, the depreciation increase seems to be higher than a usual number.
M.P. Taparia
Total addition to fixed assets is ₹1,400 crore this year, including what has got added to the block.
Darshita Shah
Gross ₹1,400 crore would also include Wavin?
M.P. Taparia
Yes.
Darshita Shah
Got it. Great.
Thanks a lot.
Operator
Thank you. The next question is from the line of Ritesh Shah from Investec Capital.
Please go ahead.
Ritesh Shah
Hi, sir. Congratulations for good set of numbers.
Sir, few questions. Sir, how should we understand PVC resin prices resin made via carbide route and resin which is made by VCM route?
M.P. Taparia
Both resin, they make PVC, and PVC make the product. There is no difference for you.
Suppose some carbide maker PVC, if a VCM contain more than 1%, then people don't consider a good material for use of quality PVC pipe. Majority of them make carbide-used PVC having VCM content less than 1%.
Less than 1% VCM content PVC, there is no issue compared to carbide or ethylene. We don't see any problem.
Ritesh Shah
Sure, sir. That helps.
M.P. Taparia
Which was produced by DCM for last more than three, four decades in India.
Ritesh Shah
Okay. That is helpful.
Sir, second is, any update on our windows and profiles business, that is one. Secondly, anything on the gas piping side?
I think we did receive an order on electrofusion fittings from Maharashtra Natural Gas Limited a while back. How are both these businesses actually doing, sir?
Window,
M.P. Taparia
our plant is started. We started selling in the month of March only.
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 and electrofusion fitting required for carrying piped natural gas.
We got order from three, four gas companies, and more orders are under negotiation. That will meet the requirement for carrying the pipe under the ground.
Above the ground, we make PE and aluminium-PE composite pipe, that also we issue order. That also will meet the requirement of handling the natural gas.
Ritesh Shah
Sir, how big can this business be for us, the gas piping business?
M.P. Taparia
We don't know how big the company will buy, we can't say, now. It's to come for the company to decide.
We are capable to supply
Ritesh Shah
quite a
M.P. Taparia
volume.
Ritesh Shah
Okay. Sir, how much is our capacity over here?
M.P. Taparia
We can make 10,000 ton pipe per month, actually. That is spread on nine plants.
Depend on which plant they will place order, accordingly we may supply them. We can supply easily 1,000 ton monthly from our three, four location.
Ritesh Shah
Okay. Sir, 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?
M.P. Taparia
We launched only in UP and NCR.
Ritesh Shah
Only UP and NCR, okay. Sir, how much is our capacity over here?
M.P. Taparia
It is around 10,000 window per month.
Ritesh Shah
Sure. This is helpful, sir.
Thank you so much. Thank you.
Operator
Thank you. Participants with questions may enter * and 1.
Our next question is from the line of Praneeth Bommisetti, an individual investor. Please go ahead.
Praneeth Bommisetti
Hi, thank you for the opportunity. I understand that it's been great performance.
I was wondering, in terms of consolidation of the market, how have you seen the organization of the overall market? In terms of CPVC also, I think Astral had very lofty goals in terms of dominating at a much higher rate.
Could you explain how are you seeing the Astral entering CPVC and how are you facing competition on the ground, versus an organization of the market and how has the organized players expanded in the market?
M.P. Taparia
I don't follow what you want to ask from us. We are one of the suppliers.
Astral is supplier, Ashirvad is supplier, Prince is supplier.
Praneeth Bommisetti
I was not clear with my question. I was talking about the market share.
How has Supreme grow in terms of its market share and its CPVC versus the other piping divisions? What kind of market
M.P. Taparia
We do not have market share. We don't know market share.
We don't know the market share of our company in the CPVC market. We don't know.
Praneeth Bommisetti
What about the other segments, sir, rather than CPVC in the piping division?
M.P. Taparia
Maybe 12% to 13%.
Praneeth Bommisetti
Do you have any goals in terms of expanding it from the 13% mark to 20%, let's say? What is the company doing in terms of expanding the market share?
What
M.P. Taparia
We have plan to grow.
Praneeth Bommisetti
What are the ideas that internally that you have thought in terms of which market share would you like to grow to from the 13% levels today?
M.P. Taparia
Go on putting more capacity, go on offering more system, go on making more SKU in each system, go on appointing distributor, dealer, go on working in the export market. There are so many avenues to do that, and we are working on all this avenues
Praneeth Bommisetti
to increase our business. Yeah.
By let's say 2032 or 2030, in next 4 years, what kind of market share targets does the management have today?
M.P. Taparia
We are working more now first how to increase our export business. Our export business plastic pipe system only $5 million.
We are working first how to reach $50 million very shortly. 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.
Praneeth Bommisetti
Understood, sir. In terms of exports, in terms of competition, because the pipe is usually mostly air, it's really volumetric rather than weight.
Won't it be difficult to compete in the international market? What are the markets we're looking to compete in?
M.P. Taparia
I don't say pipe, I say piping system.
Praneeth Bommisetti
Okay. Because of
M.P. Taparia
System doesn't mean only pipe, it includes fittings also.
Praneeth Bommisetti
You're not interested in just pipes export, you're interested in fittings part of it, is it?
M.P. Taparia
We include both.
Praneeth Bommisetti
Okay. Which geographies are we targeting, sir, today?
In the short term,
M.P. Taparia
throughout the world.
Praneeth Bommisetti
Okay. For the $500 million segment, are we looking at Middle East, Africa, we're looking further also?
M.P. Taparia
No, Middle East is a very small market for us. We want to export to other market also, where we are operating for many years.
Now we are marketing many parts of the world. Let us execute, then we come back to you.
Today, only $5 million, what is nothing there to talk.
Praneeth Bommisetti
When we like company
Operator
Sir, can we ask you to return to the question queue, sir?
Praneeth Bommisetti
Sure. Thank you.
Operator
Thank you. The next question is from the line of Ritesh Shah from Investec.
Please go ahead.
Ritesh Shah
Sir, this question is specifically on Nal Se Jal. What we understand is there is a CAG audit which is going on on a few states in the country.
Sir, how do you read into this? Is that the reason why you indicated Nal Se Jal will actually be slow, or is there any other way to actually read it?
M.P. Taparia
That's here,
Ritesh Shah
CAG audit is going on, that's why,
M.P. Taparia
huh?
P.C. Somani
He says that when the CAG audit for the Nal Se Jal, that is why we are talking less growth for Nal Se Jal. That's not the case.
M.P. Taparia
I am not aware what is CAG audit.
P.C. Somani
CAG, Comptroller and Auditor General. There's an audit.
M.P. Taparia
What?
P.C. Somani
I don't know what it is. No,
M.P. Taparia
no, we are not aware. We have heard from you, sir, today only.
Thank you.
P.C. Somani
We don't think so, Ritesh, that can be the reason here.
Ritesh Shah
Okay. Sir, any other reason why the government is probably going slow, sir?
M.P. Taparia
No, no, unless state government participate and they release their part of contribution, the central government is not releasing the funds. Still, we don't see the funds coming to the ground.
Anyway, we are a small player in the water supply scheme. As you are aware, in last 2 years, government when the budget was moved to this parliament, they announced ₹67,000 crore expenditure.
For last 2 years, every year ₹67,000 they announce, and they spend only ₹22,000 crore. The question to our mind is because the state government has to match their share.
Whichever state governments contribute, then the central government release the money.
Ritesh Shah
Okay. Sir, just for understanding, if earlier the project was ₹100, how much was the contribution from the central government?
M.P. Taparia
We have no idea. You can check with central government, dear friend.
Ritesh Shah
Sir. Thank you.
Thank you so much.
Operator
Thank you. The next question is from Bhavin Vithlani from SBI Mutual Fund.
Please go ahead.
Bhavin Vithlani
Good evening, and congratulations for good set of numbers. Sir, question is on you've added five manufacturing facilities over the last 12 months.
M.P. Taparia
Sir,
Bhavin Vithlani
you added five manufacturing plants over the last one year. Could you talk about 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?
Is there a numerical number in terms of savings on the logistics cost that you've been able to get because of the new manufacturing facilities, where you move closer to the customer?
M.P. Taparia
We made quality goods close to the customer. Our idea is, customer can work with our plant as a godown.
Bhavin Vithlani
Is there a savings 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, savings on the logistics?
M.P. Taparia
Our whole idea is to provide better service to our customer. It become more affordable to the customer.
We are not taking the saving into our account, but we are becoming more competitive and more efficient.
Bhavin Vithlani
Sure. 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 those products were not there, you've been able to introduce this year?
M.P. Taparia
We have 15,600-plus some SKU. We have 45 systems.
Within, we are going on adding more and more SKU in this 45 system, and we are going to introduce one, two more systems this year.
Bhavin Vithlani
Got it. Because some of the checks that we do, we understand that high-rises is an area where there was some gap in products.
Have you been able to close those product gaps?
M.P. Taparia
We don't have any gap now, nothing. No gap.
Bhavin Vithlani
Okay. We
M.P. Taparia
have the best system today.
Bhavin Vithlani
Got it. Now when you compare Supreme vis-à-vis an Astral specifically in the CPVC segment or Ashirvad, which areas have you identified where there are spaces now and that you've been working to close those gap?
M.P. Taparia
There are so many part of the country we have to still make our product available. India is a huge country.
Bhavin Vithlani
The last part is, on a long-period average, you've been able to grow around 13%. 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.
M.P. Taparia
There is no uncertainty. We look forward to achieve 2 million ton.
Bhavin Vithlani
In the current financial year?
M.P. Taparia
Not financial year. Total, what you say, what is your dream.
Our dream is to achieve 2 million ton.
Bhavin Vithlani
Okay.
M.P. Taparia
Presently, we are only 6 lakh ton, a long way to go.
Bhavin Vithlani
Understand, sir. On a profitability basis, what in your view is a sustainable EBITDA or EBIT margin that one should look at on a sustainable basis?
We understand some quarter there are inventory losses, some quarter inventory gains. If one irons that out, what's the sustainable level that one should expect?
M.P. Taparia
The only one criteria that we must get return more than 25% on the capital employed. We are earning more than 25% year after year for last 18 years.
Last 18 years, we are seeing that our return on average capital employed is more than 25%, and that the only criteria we follow in our company.
Bhavin Vithlani
Understand. Sure, yeah.
Those were my questions. Thank you so much.
M.P. Taparia
Thank you.
Operator
Thank you. The next question is from the line of Varun from 360 ONE Capital.
Please go ahead.
Varun Julasaria
Hi, sir. Thank you for the opportunity.
I just wanted to check, by when will the greenfield project be operational?
P.C. Somani
Greenfield project? No, no, we have yet to start the work.
Varun Julasaria
Patna By when
P.C. Somani
All the four plants what we are now talking should be operational by end of March '27.
M.P. Taparia
Not fully, partly operational.
P.C. Somani
The
M.P. Taparia
full opportunity are always 2 years, now. Now the land is in our hand, we start the work.
It will be, definitely some capacity will be available this year, and fully ready in next 2 years.
Varun Julasaria
Okay. Sir, on the realization front, since last year, the PVC price on an average for the full year was less than around ₹70 per kg, and now expectation is slightly higher, right, ₹75 to ₹80.
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?
M.P. Taparia
We don't make only PVC, we make CPVC also, we make polyethylene also, we make linear low-density also. We believe that 14%, 14.5% margin will give us return in excess of 25% on capital employed.
Varun Julasaria
In sustainable.
M.P. Taparia
We work on sustainable business. We must earn 25% on the money what we invest.
Anyway, earning more than 25%, we go on expanding. Sir,
Varun Julasaria
on the plastic pipe segment, overall, what is the realization that we aim, suppose if PVC kind of stabilize around ₹75 per kg, is there any kind of value
M.P. Taparia
We are not selling one product, there are several products in PVC also. Every product got different margin basis based on the investment what we have made to make that product.
There were several types of PVC made by a company. Several for have several application also.
There is no fixed formula. It depend on the money what we invest in that business, we accordingly price our product.
It's quite complex.
Varun Julasaria
Sir. Thank you.
Thanks, that's it from my side.
Operator
Thank you. Our last question is from the line of Karan Bhatelia from AmSec.
Please go ahead.
Karan Bhatelia
Hello. Hi, sir.
Am I audible?
P.C. Somani
Please.
Karan Bhatelia
Hello. Yeah.
Sir, you mentioned that the PVC volume declined for the entire year was 9% for FY26. Can we further get into decline for infra, agri, and plumbing at the industry level?
No, not declined in our company.
M.P. Taparia
I said the country has declined, not PVC. I said plastic piping business had a degrowth of 9% in the country.
Now which application, that only the raw material producer can supply. We don't have idea.
Our company has grown.
Karan Bhatelia
Right. You mentioned of 15% to 17% volume growth in piping, so that includes Wavin as well, right?
M.P. Taparia
Yes, yes. Wavin is a part of our company, and now there is no Wavin.
Wavin is one of the units of Supreme Industries.
Karan Bhatelia
Right. Sir, one last question.
We had some outstanding 14 million kind of rupees pending from the JJM mission. Are we yet to recover that?
M.P. Taparia
Money recovered.
Karan Bhatelia
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.
M.P. Taparia
We are very thankful to all the analysts with very intelligent questions, and we thank very much DAM Capital for providing full support and assisting to us. Very much thankful to Mr.
Aasim also. Thank you very much, sir.
P.C. Somani
Thank you.
Operator
Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference call.
Thank you all for joining us, and you may now disconnect your lines. Thank you.
P.C. Somani
Thank you.
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