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The Supreme Industries stated that Q1FY27 volumes were impacted by distributor

ICICIdirect Research 06 Jul 2026 DISCLAIMER

News: The Chairman of The Supreme Industries stated that Q1FY27 volumes were impacted by distributor destocking following sharp polymer price volatility triggered by the US-Iran conflict and subsequent ceasefire. Management expects polymer prices to normalize over the next 1–2 months and anticipates volume recovery in the remaining part of FY27, with a clearer outlook expected after H1FY27. The company also reiterated its confidence in long-term growth, backed by infrastructure spending, capacity expansion, new product launches, export opportunities, and continued investments funded through internal accruals.

View: Management's commentary suggests the current weakness is short-term and inventory led, rather than demand driven. Normalizing raw material prices, healthy infrastructure demand, and ongoing capacity additions should support a recovery in volumes and earnings from H2FY27 onward.

Impact: Neutral

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