📢 Supreme Industries Upgraded to ‘BUY’ After Strong Q2 Volume Growth and Positive H2 Outlook

Supreme Industries (SI) reported a robust 11.8% YoY volume growth in Q2FY26, surpassing estimates of 6.8%. The company expects H2FY26 to outperform H1, driven by potential anti-dumping duty (ADD) on PVC resin, stronger agriculture demand, and higher government spending. Despite an EBITDA margin contraction of 160bps YoY to 12.4% (due to Wavin business consolidation), management maintained its EBITDA margin guidance at 14.5–15% and revised overall FY26 volume growth to 12–14% (from 14–15%). Plastic pipe capacity is on track to hit 1 million MT in FY26. Analysts forecast FY25–28E revenue/EBITDA/PAT CAGR of 14.6%/18.2%/19.6%, supported by 13% volume CAGR and ~130bps margin expansion. Following a recent stock correction, Prabhudas Lilladher upgraded SI to ‘BUY’ (from ‘Accumulate’) with a target price of ₹4,723, based on 40x Sep’27E EPS. #SupremeIndustries #EarningsUpdate #Q2Results #PVC #Manufacturing #StockMarketIndia #BuyRating #PrabhudasLilladher #PlasticPipes #CapexGrowth