Supreme Industries Limited (SUPREMEIND) Q4 2026 Earnings Call Transcript

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 touchtone telephone. Please note that this conference call is being recorded. I now have the conference over to Mr. Asim Harday from Dam Capital Advisors Ltd. Thank you and over to you, sir.

Thank you, Farah, and good evening to everybody joining in for Supreme Industries Q4 and F26 Post-Earnings Call. So we have, as usual, the senior management of the company led by Mr. M.P. Taparia, Chairman and Managing Director, Mr. P.C. Sobhani, CFO, and Mr. R.J. Sabu, VP, Corporate Affairs and Company Secretary. Thank you, and over to Mr. Taparia for his opening comments.

Thank you, Mr. Yashkim. I am P. Tapparia, Chairman and Manager Director of the Supreme Industry Limited. I, along with my colleague, C.P.J. Swamani, CFO, and C.R.J. Sabu, Vice President, Corporate Affair and Company Secretary, welcome all the participants who are participating in the discussion of the audited stand-alone and consolidated financial results for quarter and year ended 31 March 2026. The stand-alone results and the cancelled results are already with you. I will be brief on company product operating performance and other highlights. The company sold 753,907 tons of plastic goods and achieved revenue from operation of Rs. 11,218 crore during the year under review. Again, sale of 6,074,510 ton and revenue of Rs. 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 Rs. 1,654 crore. This represents an increase of 7% in operating profit, while profit after tax declined marginally by 1% year-on-year. The business scenario All the product segment of the company for the year ended in 31st March 2026 as compared to previous year has been year-under. Plastic piping system business grew by 14% in volume and 11% in value term. Industrial product segment business grew by 1% in volume and 3% in value term. Packaging for a segment. Grew by 5% in volume and 3% in value term. Consumer product segment business grew by 4% in volume and decreased by 1% in value term. The overall turnover of value-added product increased to Rs. 4,677 crore as compared to Rs. 4,050 crore in the previous year, achieving growth of 15%. The company proposed to commit capital expenditure in excess of Rs. 1,000 crore during the year, including carry-full commitment from the previous year. KPS plan includes new greenfield projects for plastic piping system and Patna in Bihar, Jammu in Kasmidh. Facility for material handling products at Mahalanpur and Madhya Pradesh. Manufacturing Capabilities, Expanding Capacity, Enhancing Product Offering, and Advancing Sustainability Initiative. The Planned Capital Expanded. Good morning, everyone. 2-5-2-6 Thank you. Prices, including frequent sub-price movement during the year. The demand, particularly in the agriculture segment. Good for you. Thank you, everyone. the position added by continued expansion of value added product This is the argumentation. Good morning, everyone. Thank you. The company entered the industrial plumbing system. Thank you, everyone. It was a great general initiative and the expansion of five national gates. We will implement a prudent and well-defined business strategy anchored on five key pillars. We have a strong relationship with the channel partner, effective customer service, and deeper reach across the country. The company's consumer and packaging business delivered stable to increasing performance with targeted product innovation. Customer diversification and focus on value-added offering. In this segment, however, continue to witness Thank you, Mr. Simpson. to boost export of company products to avail the emerging opportunities with many future 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. Domestic redemption, instructive development, and policy support. With a strong balance sheet, Good performance in the coming years and creating... What did it, Ian? Thank you.

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 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 Ikigai Asset. Please go ahead.

Hi, sir. Good evening. Thank you for the opportunity. The 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?

A full year, there may be hardly any inventory,

only a quarter of every inventory loss.

Yes, sir, I'm aware of that.

No, we don't see any rent again. For a full year. Fourth quarter, there may be element to get net to net, maybe around 70 to 80 crores.

Okay, sir, got that. And, sir, second and last question was on capex. You have detailed in the press series about the capex, but any plans on the packaging side where you think you should expand capacity?

The packaging site, we have purchased a land near GNPT, the procedure going on. Once the land comes in our position, then we announce. Putting a facility to make packaging product is close to the NPD area. We must be marked for export market.

Sir, how much would be the capex there? What kind of capacity do you think we should put in?

Let the land come in our hands, then we will talk to you. Please.

Alright, sir. And last question, sir. What are the growth for CPVC pipes and fittings?

Last year we had a growth of around 38%.

Thank you so much, sir, and wish you all the best for the next year.

Thank you. The next question is from the line of Shravan Shah from Daulat Capital. Please go ahead.

Hi, sir. Thank you. Sir, now, how are we looking at the overall volume and piping volume for FY27?

Thank you, Jim. Bye. We anticipate between 15 to 17%.

15 to 17% in piping? And overall?

Around 12%. 12 to 13%.

12 to 13%. And for margins, sir, how now we look at the margins?

Argin is between 14 to 14.5%.

14.5%, okay.

14.5.

14.5, sir, na?

14 to 14.5.

Okay, 14 to 14.5. Okay, got it. Sir, now, given the PVC prices, so much volatility that we have seen. 47, 48 rupees up in January to March and then again, 32, 33 rupees down. So, how one can look at, do we still see the volatility to continue or now it seems to be stabilizing and now in last 10, 15 days, how are we seeing the general inventory or the demand because such a volatility is there, how it is impacting the demand?

I'm putting my braces. Community products, they remain volatile, it is not The price remains always volatility. It can't demand steady price throughout the year. It is never meant. And now the PVC prices have come down quite a lot between 5th April to 21st April. The prices have come down by 34 rupees. That is, 30% price went down. But prior to that, in the month of March, the price went up by 32%. So, the patch increases in character in the month of April. Now, the inventory also at the distributed level, retail level are mostly cleared. So, we do not anticipate now any patch reduction also, because rupees getting weaker. Rupees are now 94.5. Our rupees become quite weaker and we are too much import dependent. So, we do not see any patch erosion now.

Got it, sir. And lastly, sir, this 1,10,000 capacity that we are adding, out of that, how much will be in the piping segment and this entire 1,10,000 will be added by FI-27?

They will be added by FI-27 for sure. Okay, and out of that? Okay, 100,000 will be in piping sector only.

Okay, the entire would be in the piping, you are saying?

100,000, the piping sector, 10,000 would be mostly in material handling system.

Okay, okay, okay, got it, got it, sir. And then lastly, in terms of the, for this Q1 particularly, specifically, do we see any inventory gain or loss?

Thank you. Our next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.

Hello. Hi. Hi, please. Thanks for the opportunity.

Sir, my first question is, can we bifurcate and view the Q4 volume growth? We believe, you know, channel inventory has improved in Q4. So possibly, what would be the growth because of end demand and because of channel inventory?

I don't know. Can we replace all this? It is not feasible to just quantify that. There are more than 50,000 issues and we don't know now.

We have no

idea.

We have no idea different. Okay, got it. Thank you.

That's it. Thank you. The next question is from the line of Praveen Sahai, PL Capital. Please go ahead.

Yeah, hi. Thank you for the opportunity. My first question is related to the demand, especially for the Agree, as we had seen a lot of fluctuation in the PBC recent prices. And we also understand the Q4 and Q1 is where the agree demand comes in. So do you see any, you know, impact on the agree demand, especially because of the recent price fluctuation in the Q4?

The recent price is now Q4. Demand starts only from Q1. Q4 demand was implemented in the month of March. But now Q1, now we are talking Q1 only. Now demand has started full force. There is no issue.

So, with the price correction, demand has picked up in the EGRI?

The price has come down very low, and EGRI sector, they don't keep inventory earlier, normally they don't keep. And so now, the price is quite low, so demand has come very quickly.

And also, with these fluctuations in the PVC racing 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?

You can't complete building without plumbing.

Okay. One clarification on the...

I mean, no. There is no demand destruction from the users. There is no demand destruction.

Okay. Okay, sir. And one clarification on your 38% of IOI growth in the CPVC, is that of volume or a value?

We talk volume or value, we don't know.

This is a volume growth in the CPVC?

Yeah, for the full year.

For a full year. And can you give any indication how much is a contribute to our total piping business?

No idea.

Thank you, sir, and all the best.

Thank you. Participants, it's a request. Please limit your questions to two questions per participant. The next question is from the line of Smeha from Nuwama. Please go ahead.

Sir, thanks. Not for the opportunity. Just a couple of questions from my end. What could have been the industry group and FL26? Any number there or maybe even Q4 would be helpful.

Question, why please, Shisham?

Yes, sir.

We are told by raw material producers that it was minus 9%.

Minus 9% was FY26 growth.

FY26, there is a volume degrowth by 9% in plastic piping system in the country.

Wow. Wow. Wow, that's it. How are things looking up from here? Anything from polymer suppliers or your say that, you know, how is industry likely to grow in FI27? Any uptake that you've seen in Null Seasal?

No, I'm not clear your question. I'm not clear to me. What did you ask?

What's the kind of growth at an industry level that we're expecting in FR27, and any updates that you've seen in the nursing scheme, because there were very recently some allocations made?

Industry growth, you can ask Ramthi, they told us that they anticipate 8% growth this year.

If anything about Nultagel, sir, recently there were allocations. Have we seen any pick-up or government spending starting to take place? Any fund releases?

No, no. As of now, we don't see any uptick on that. You see, this Nultagel depends upon the state and central government cooperation.

Well doing can depend on the state supporting, the state has to contribute also. Unless the state contributes, then you need the money. So, well doing, we are not sure. Up till now, it never happened as to the declared policy of the government of India, the central government. Last two years also, whatever budget they were announced in February, 1st February, they could spend only one third amount. So, we are not sure, this year also.

I'm sorry, ma'am, can we ask you to return to the question queue? Thank you. The next question is from the line of Sonali from Jefferies. Please go ahead.

Thank you for the opportunity and congratulations on a good set of numbers. My question is about the Middle East impact on the polymers. You did mention in your press release that the impact on polythylene 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.

Now, the Gulf impact will impact all the polymers. They are not only making polymers, they are also supplying filistro for the polymer to the plant based in Farish Asia, Southeast Asia. The pressure is all affected.

Built to the volumen capacity worldwide big way.

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? That's right. I'm asking of PVC resin prices.

The point is that PVC is not so much affected as a huge volume is coming from China, and China's production is not based on crude oil. They manufacture based on coal. So coal to PVC, China is a very large producer. It is not affected by any Gulf disruption. So China was a big player in India, now they become bigger players. So, because of that, PVC is not affected in India. We are getting big supply from China.

So, you foresee the prices of PVC to go down further, like we have seen in the past two weeks. Is that understanding?

It cannot go up very much. You see, I want to go up, but will not go up the way the excellent PVC has gone up.

Got it.

Very helpful. Thank you, sir. Thank you. The next question is from the line of Tejas Prazan from Citigroup. Please go ahead.

Yeah, hi, sir. So, just on the notes to accounts, the note number six, you have mentioned the change in labor code provisioning. I noticed that the 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?

Correct. Is there net full year impact? Earlier in the Q3, we have estimated based on our working, but based on the actual evaluation report, which we have made now March 26, it is a full year impact. So 15.38 reduced to 14.4.

Okay, understood. Thanks. And secondly, on the industry, I mean, would you be able to, like for Supreme Industries, would you be able to sort of pick up the volume trends that we saw in this quarter between Jan and Fairbend, how the trends were in March, and if you can maybe extend that to April as well, I mean, between these three periods, how were the trends for both us and the industries?

We have told you the annual growth expectation, we have already told you, you know, the annual growth expectation,

month-on-month volume, we don't declare or we don't discuss, it's only quarter-on-quarter, we always give the data, and April is just yet, the annual growth, we already,

you know, we anticipate to go 15-17% back in business. About the current year, you know, for this year.

We wanted April, which is not feasible. April is not over now.

Anyway, we do not give month-to-month figure also.

Sure, sure. Any qualitative sense would have also been great, but I mean, depending on what you want to discuss.

As you know, the year has begun, still the geopolitical conflict continued, so really you can't think of better things today. But yes, let us hope for the better situation to come.

Sure, sure. Thanks a lot.

Thank you. The next question is from the line of Bhavin Rupani from Investec. Please go ahead.

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 31st March?

I must remember inventory requirement. Cost of inventory, what is your carrying inventory cost? You see, these are the classified information. We don't really disclose those kind of things.

All right. So, in terms of days, what would be the number of days of PVC inventory do we have as the 31st March then?

We must keep the plant adequate quantity, so the plant should go running. We invest in local and import both, because local is not adequate. So, import is slightly more than local. Local, you can get a weekly also. But import, we need to keep in pipeline. So, we don't take a prudent decision. So, the plant should not be short of ramukhi gel. It must be available. India imports 68% requirement, 32% only supply locally. So, when double the requirement made from import, then import always takes time now. So, you need to keep always inventory in plant or bed house, so that all your plant... We are responsible suppliers, so we are never failing to supply to our customers.

It won't take any decision, it's very important. Go ahead, sir.

Sir, this second question on VWIN, sir, what would be our volumes from VWIN during the quarter?

Man, sir. VWIN. VWIN capacity is annually 70,000 ton, and we anticipate that overall we will be achieving 70% of our capacity. So, VWIN will contribute around 48,000 to 49,000 ton in our business volume this year.

And VWIN plants are running normally from February onwards? The 3-4 months it took time to revamp and refurbish everything. From February onwards, they are in the normal part.

So, what is the contribution in terms of volumes during Qquota?

Pavan sir, could you return to the queue please?

This is just a follow-up. Just a follow-up.

So, about 4,000 a month, and from February, March, if you look at it.

So, for the quarter, it could be around 10,000 tons. Go ahead, sir. Thank you.

Thank you. The next question is from the line of Garish Chaudhary from Aventus Park. Please go ahead.

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 the small and mid manufacturers coming back strongly into the market?

We're running the plant now, and there's a big market.

In terms of the raw material availability challenges, did you hear anything about the small manufacturers facing some issues?

We are not aware, we are not a small scale producer, but we are not aware that anybody is not getting the raw material, which is adequately available.

Okay, so my second question is on the windows business, so if you would give us some sense on what kind of revenues we can expect in the next one year and the margins as well.

One year, how much do you can say?

Once we actually achieve full capacity utilization, then it should be about 200 to 250 crore rupees annual revenue.

200, maybe around 250 crore rupees annual revenue to get, we have put a small capacity, so we may get 250 crore rupees revenue annually when we start running the fund fully.

Okay, and can we assume similar margins for this business as well?

Marju is better. It's a customized window. Profitably.

The investment was a 200 rupus in the business.

So Marju will maintain to that we can return on the investment benefit.

Thank you, sir.

Thank you. Our next question is from the line of Durgej Shukla from Infrared Capital. Please go ahead.

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. So thank you. No more from my side.

Sure. Thank you.

Thank you.

The next question is from Shubham Shukla from Voyager Capital. Please go ahead.

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 the ideal utilization level? And how do you define lower and higher utilization bans, both for company and more broadly for the industry?

Normally, we consider if you are able to do 70% or 75% is the best utilization. During any season, demand comes down. Normally, we consider. Sorry, worldwide, there is always 2-3 months in the end. So, this is what we consider. Depending on business situation, sometimes you may not get 75%, you may not get 70% or 68%, something like that.

Okay, so sir, 75% is the feeling which we hit and it doesn't go up more than that.

Well, if the business conditions are looking quite okay, if the rains remain only normal,

no abnormal, no prolonged period of rainfall. The prolonged period of rainfall then business will be affected.

Okay. All right. Thank you.

Thank you. The next question is from the line of Utkarsh Nupani from Anandrathi. Please go ahead.

Yeah, hi. Good evening, sir. Sir, my first question is regarding the plastic pipe phase volume growth which we have reported for the March quarter. Sir, you have mentioned that the agri-pipe demand got impacted in the month of March because the recent prices were falling, and the demand for infra-pipe from Jal-G1 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 challenge?

In March, demand is fallen due to price going down. The price went up. In the month of March, the price went up so steeply. The farmer will be due to buy the goods in the month of March. Now the price has come down, so now the demand is normal. It went down by 37 rupees a kilo and then came down by 33 rupees a kilo. So now the demand is normal in agriculture, there is no issue.

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?

March is normally, season of plumbing only. Normally, March demand for incubation starts big way. Big way starts only after the crops are harvested. That happened around 8th or 10th of April. Then demand comes up fully.

Okay, and 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?

Throughout the country, people who build the house, they require the plumbing. People build the house in rural areas, in big areas, people building houses, up to tier 6 cities, houses are built. And for any house to function, you must say plumbing.

Okay, and 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, and do you see any further pressure in the PVC resin prices in near future?

Now, current ramen price is around 81 rupees kilo, and we anticipate that the 80 rupees is going down, and pressure will go up now.

Okay, thanks a lot, sir.

Thank you. The next question is from the line of Kumar Soumya from Ambit Capital. Please go ahead.

Hi, sir. Good evening. Sir, a couple of questions from my side. Am I audible, sir?

I'm very efficient, please.

Yes, sir. So, I just wanted to understand the raw material availability. You said PVC is abundant. So, how is the situation on SDP side, PP, polystyrene, how are they currently available in the market?

All rammed are available in India. We don't see any problem, any raw material which is not available. Got it, got it.

And secondly, sir, you said that the volume for 4Q from Wavin 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?

I believe we should get 50,000 tons from them.

In FY26, how much was that, sir?

Last year, we just started in the month of August, then we were rewamping. So we get normal pressure only from February. So we might have about 10,000 tons in this quarter. But now for the full year, we anticipate we may get 48,000 to 50,000 tons this year.

Okay. Okay, sir. Thank you, sir. That was all from my side.

I'll come back in a minute. Thank you.

Persons with questions may enter star followed by one on the handsets. The next question is from the line of Rahul Agarwal from Ikigaya Asset. Please go ahead.

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 QoQ basis, just wanted to understand if there is any one-off, one-time adjustment to this number?

No, nothing specific.

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 line.

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 going well. So, no inflation or no increase in those kind of...

So, publicity was 125 crore last year. So, it's basically flat YY in what you're saying.

No, this year it is 98 crore only. Oh, okay.

Of course, sir. Call it, sir. Thank you so much.

Thank you. The next question is from Tarshita from TSP Mutual Fund. Go ahead. I'm sorry, I know that.

Thank you for the opportunity. So I wanted some understanding on the depreciation. We had already capitalized up to like the cash outflow when we see in the second half was roughly 566 crores due to investments, which was about 814 crores 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?

Ma'am, you have to see the last year's capital work in progress, which was more than 400 crore, which also has got capitalized this year. And our closing work in progress is only 136 crore. So, when you look at the states, We have to look at the, because whatever payments have been made previous years and the work in progress.

Okay, and then this year we believe it will further go up with a thousand-odd crores.

Vavin acquisition also separately.

Right, no, no, even if I take into account Vavin, the depreciation increase seems to be higher than a normal, like a usual number.

Our total addition to assets is 1,400 crore this year, including what carried to the...

1,400 crore would also include wawin.

Thank you. The next question is from the line of Ritesh Shah from Invesic Capital. Please go ahead.

Hi, sir. Congratulations on good set of numbers. Sir, a few questions. Sir, how should we understand PVC resin prices, resin made via carbide route and resin made, resin which is made by ADC, it means VCM route?

No, both resins. They make PVC and PVC make the product. So, there is no difference for you. If suppose some carbide make up UVC, with a vacuum containing more than 1%, then people don't consider the good materials for use of quality UVC pipe. Majority of them make carbide use UVC, keeping UVC containing less than 1%. So less than 1% UVC containing UVC, there is no issue compared to carbide or ethylene, we don't see any problem.

Sure, sir, that helps.

This was produced by DCM for a lot more than three for BKs in India.

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 Mahastra Natural Gas Limited a while back. So, how are both this business is actually doing, sir?

Thank you. When the 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, agent today, who supply the pipe and electrofusion fitting required for carrying pipe natural gas. We got order from 3-4 gas companies and more orders are under negotiation. So that will meet the requirement for carrying the pipe. Under the ground and above the ground, we make PE, aluminum PE, composite pipe. There also we issue order. There also will be the requirement of handling the natural gas.

Sir, how big can this business be for us, the gas piping business?

We don't know how big the company will buy. We can't say now. It's only a complete site. We are capable of supply. We are capable of supply at a volume.

Okay. Sir, how much is our capacity over here?

We will capacity, we can make 10,000 and five per month actually, but that is spread over nine plants. So, depend on which plant they will place order accordingly, we may supply them. We can supply easily 1,000 and monthly. Okay. That's our default location.

Okay.

And, 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?

Only UPNNCR.

Only UPNNCR, okay. And, sir, how much is our capacity over here?

It is 10,000 window per month.

Sure. This is helpful, sir. Thank you so much. Thank you.

Thank you. Participants with questions may enter star and one. Our next question is from the line of Praneet Bommasetti, an individual investor. Please go ahead.

Hi. Thank you for the opportunity. So, I understand that we did 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 ASL had very lofty goals in terms of dominating at a much higher rate. So could you explain how are you seeing the Astral, it entering CPVC, and how are you facing competition on the ground, was this an organization of the market, and how has the organization expanded in the market?

I don't know. What is it? There are many suppliers in our country. I don't follow what you want to ask for us. There are a lot of suppliers. And welcome to the call and welcome to the call.

Sorry, I think I was not clear on my question. I was talking about the market share. How is Supreme Road in terms of its market share and its CPVC versus the other piping divisions?

We don't know market share. We don't know market share of our company in the CPVC market. We don't know.

What about the other segments, sir, rather than CPVC in the piping division?

Maybe 20-13%.

Do you have any goals in terms of expanding it from the 13% mark to 20%, let's say, like what is the company doing in terms of expanding the market share?

We have planned to grow.

Yeah, 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?

Go on putting more capacity, go on offering more systems, go on making more STU in each system, go on appointing distributed data. We go on working in the export market, so there are so many avenues to do that, and we are working on all those, all those avenues to increase your business.

By, let's say, 2032 or 2030, like, in the next four years, what kind of markets and targets does the management have today?

We are working more now, first, how to increase our export business. Our export business, plastic prices, is only 5 million dollars. 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 factory system we have put on a great growth path.

I understand, sir, but in terms of exports, like in terms of competition, because the pipe is usually mostly air, it's like very volumetric rather than weight, won't it be difficult to compete in the customer market? Like, what are the markets you're looking to compete in?

I don't say pipe. I say piping system.

Okay. So, in terms of...

I mean, only pipe, which will be fitting also.

Okay, so in terms... So you're not interested in just pipes export, you're interested in the fittings part of it, is it?

We will give you both.

Okay, so, and which geographies are we targeting, sir, today? Like, in the short term, like, we'll...

Throughout the world.

Okay, but, like, for the 500 million segment, are we looking at Middle East, Africa, or are we looking further also?

No, Middle East is a very smart market for us. We want to put the other market also. We are operating for many years. Now, we are making many parts of the world. Mr. Sekhi, then we come back to you. Today, only 5 million dollars. So, what is nothing? We have to talk.

So, can we ask you to return to the question queue soon? Yeah, sure. Thank you.

Thank you. The next question is from the line of Ritesh Shah from InvestSec. Please go ahead.

Sir, this question is specifically on Null Se Jado. 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 Null Sejal will actually be slow, or is there any other way to actually read it?

Actually, care question.

CAG audit is going on. That's why he says that when you CAG audit for the Null Sejal, that is why we are talking less growth for Null Sejal.

That's not a case.

I'm not aware. What is CAG?

CAG. Control and Auditor General.

No, no, we are... We are... We are... We said today only. Thank you. We don't think the reasons that can be the reason.

Okay. Fair. Fair. Any other reason why the government is probably going slow, sir?

No, 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.

A small player in the water supply scheme. But as you are aware, in the last two years, government, when the budget was moved to the parliament, they announced 67,000 crore expenditure. And for the last two years, every year, 67,000 crore they announced and they spent only 22,000 crore. So the question to our mind is because the state government has to make their share. So, which of the state government contributes, then the central government is the money.

Okay. Sir, just for understanding, if earlier the project was 100 rupees, how much was the contribution from the central government?

We have no idea. You can take the central government, dear friend.

Okay, sir. Thank you. Thank you so much.

Thank you. The next question is from Bhavin Mitlani from SBI Mutual Fund. Please go ahead.

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 how closer you've got in terms of customers and 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 you have to go closer to the customer?

It's very good to the customers. The whole idea is the customer can work with our go-down, our plant which is a go-down.

So, is there a savings at 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?

The whole idea is to be quite better to sell it to our customer.

So, it becomes more affordable to the customer. So, we are not taking the selling into our account, but we are becoming more competitive and more...

So, the second part is you've added both 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 that you've been able to introduce this year?

We were 15,600 plus some SKUs. And we were 45 system. Listen, we are going on adding more and more SKU in these 45 systems, and we are going to be one or two more systems this year.

Got it. Was there any gap that, 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?

We don't have any gap now.

Nothing.

No gap.

Okay.

That was the best system.

Now, when you compare SUPREME with an ASTRL, specifically in the CPVC segment, which areas have you identified where there are spaces now and that you've been working to close those gaps?

There are so many parts of the country. We have to still make it pretty available.

These are the huge countries.

The 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.

There's no uncertainty. We look forward to achieve 2 million tons.

Okay, in the current financial year.

Not financial, current financial. Total, what is your dream? So, our dream is to achieve 2 million tons. And then we're only 6 million tons. So, a long way to go.

I 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 irons that out, what's the sustainable level that one should expect?

Yeah, we must get return 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 airway capital improved more than 25%. And that's the only criteria we follow in our company.

I understand. Sure. Yeah. So those were my questions. Thank you so much. Thank you.

Thank you. The next question is from the line of Varun from 361 Capital. Please go ahead.

Yeah. Hi, sir. Thank you for the opportunity. I just want to check by when will the Greenfield project be operational?

Greenfield project. No, no, we have to yet to start the work.

By when?

All the four plants what we are now talking, should be operational by end of

March 27. Not fully, partly operational. It will be full operational for two years. Now we have the land in our hands. So we start the work. So it will be, definitely some capacity will be available this year.

And the full year is ready in next two years.

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 UTs per kg and now expectation is slightly higher, right? I mean, 75 to 80 UTs. Then, is it possible that there will be better margin expansion than what we have guided around 14, 14.5%? Because our realisation will be better going forward.

We don't go into PVC, we make CPUs also, we make Polychain also, we make internet load LCD also. The 14.5% margin will give us return in excess of 25% of capital employed. Sustainable? We work on a sustainable business, a sustainable business, and 25% of the money what we invest.

So, on the PVC segment like price, I mean like price, plastic price segment, like overall what is the realization that we aim, suppose if PVC, you know, kind of stabilize around 75 rupees per kg, like is there any kind of like...

There are several products in PVC also, so every product has a different margin basis. Based on the investment what we have made to make that product, there are several types of business made by a company, several applications also. So there is no fixed formula. It depends on the money what we invest in that business, the equity price or product.

It is quite complex.

Okay. Okay, sir. Thank you. Thank you.

Our last question is from the line of Karan Bhattalia from Amsec. Please go ahead.

Hello. Hi, sir. Am I audible? Yeah, sir, you mentioned that the PVC volume decline for the entire year was 9% for FY26, you know, can you further get into decline for infra agri and plumbing, you know, at the industry level?

Not decline in our company. I said the country has declined, not PVC. A growth of 9% in the country. Now, only the ramacruz police can supply. We don't have your idea.

15 to 17% volume growth in piping, so that includes wave-in as well, right?

Yes, yes, sir. The wave-in is a part of a company, and now there is no wave-in.

We had some outstanding, you know, 14 million kind of rupees pending from the JJM mission. So, are we yet to recover that?

I have recovered, many recovered.

Okay, okay. Thank you, thank you. That's it for my hand.

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.

We are very thankful to ask the analyst. It is a very interesting question. We thank very much Dam Capital for providing for support and assistance and very much thank you to Mishashi Mahath. Thank you very much, sir. Thank you.

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.