Supreme Industries shares fall 4% as brokerages trim price targets amid margin concerns
Supreme Industries shares fell 4% after September quarter results missed expectations, prompting leading brokerages to lower price targets and voice concerns over volume and margin guidance.
- Oct 28, 2025,
- Updated Oct 28, 2025 11:35 AM IST
Shares of Supreme Industries declined by over 4% on Tuesday after disappointing September quarter earnings led major brokerages to revise price targets downward and express fresh concerns about the company's margin outlook. CLSA maintained a 'Hold' rating but reduced its price target to ₹4,275 per share, noting a 7% year-on-year decrease in EBITDA for the quarter.
The company reported a 12% year-on-year increase in overall volumes, aided in part by the Wavin acquisition, with organic growth standing at 10%. Management has guided for 12-14% volume growth and an EBITDA margin between 14.5% and 15.5% for the 2025-26 financial year. CLSA stated that margin expectations "look tough to be met."
Nuvama Institutional Equities also cut its price target to ₹4,356 from ₹4,614, referencing lower-than-expected margins and revising earnings per share estimates downward by 14% for FY26, 8% for FY27, and 7% for FY28.
The brokerage observed, "The brokerage said Q2 was impacted by a prolonged monsoon, weak agri and infra pipe sales, and operating deleverage."
While Supreme Industries retained its pipe growth forecast of 15-17%, it revised its overall volume growth guidance for the year to 12-14%, down from the earlier 14-15%.
The board declared an interim dividend of ₹11 per share for FY26, with a record date set for November 3, 2025. Supreme Industries shares last traded at ₹3,861.10, representing a 4% drop on the day and an 18% decline year-to-date in 2025.
Within India's plastics and polymer products sector, Supreme Industries is a key player, facing competition from companies such as Finolex Industries and Astral Poly Technik. Supreme's revised volume growth outlook and compressed margins are attributed by analysts to sector challenges, including weather disruptions and subdued demand from agricultural and infrastructure segments.
According to market data, Supreme Industries' stock performance has trailed the broader market, reflecting sector-specific headwinds and the impact of recent operational and macroeconomic conditions.
Shares of Supreme Industries declined by over 4% on Tuesday after disappointing September quarter earnings led major brokerages to revise price targets downward and express fresh concerns about the company's margin outlook. CLSA maintained a 'Hold' rating but reduced its price target to ₹4,275 per share, noting a 7% year-on-year decrease in EBITDA for the quarter.
The company reported a 12% year-on-year increase in overall volumes, aided in part by the Wavin acquisition, with organic growth standing at 10%. Management has guided for 12-14% volume growth and an EBITDA margin between 14.5% and 15.5% for the 2025-26 financial year. CLSA stated that margin expectations "look tough to be met."
Nuvama Institutional Equities also cut its price target to ₹4,356 from ₹4,614, referencing lower-than-expected margins and revising earnings per share estimates downward by 14% for FY26, 8% for FY27, and 7% for FY28.
The brokerage observed, "The brokerage said Q2 was impacted by a prolonged monsoon, weak agri and infra pipe sales, and operating deleverage."
While Supreme Industries retained its pipe growth forecast of 15-17%, it revised its overall volume growth guidance for the year to 12-14%, down from the earlier 14-15%.
The board declared an interim dividend of ₹11 per share for FY26, with a record date set for November 3, 2025. Supreme Industries shares last traded at ₹3,861.10, representing a 4% drop on the day and an 18% decline year-to-date in 2025.
Within India's plastics and polymer products sector, Supreme Industries is a key player, facing competition from companies such as Finolex Industries and Astral Poly Technik. Supreme's revised volume growth outlook and compressed margins are attributed by analysts to sector challenges, including weather disruptions and subdued demand from agricultural and infrastructure segments.
According to market data, Supreme Industries' stock performance has trailed the broader market, reflecting sector-specific headwinds and the impact of recent operational and macroeconomic conditions.