The domestic brokerage house Motilal Oswal maintained its ‘Buy’ rating on the stock, with a target price of Rs 4,200, implying an upside of over 25%. The brokerage said that despite lower-than-expected performance, Supreme Industries saw an improvement in its quarterly result, with an EBITDA growth of 7% in 3QFY26, as against a dip in the last five quarters.
The improvement was mainly driven by high overall volume growth of 13% YoY. However, margins were flat YoY due to volatile PVC pricing in Q3, offset by a better product mix.
Motilal Oswal on Supreme Industries: Worst is behind
Adding to that, the brokerage said macro headwinds affecting the PVC industry are largely behind, evidenced by PVC prices increasing from CY26 onwards and demand recovery resulting in double-digit volume growth for Supreme Industries over the last two quarters and strong Q4 guidance.
“Margins are expected to improve, led by the omission of inventory losses, stable to improving PVC price expectations, an improving mix of VAP, and higher growth in the high-margin CPVC segment,” said Motilal Oswal.
JM Financial on Supreme Industries
However, JM Financial cut the target price on Supreme Industries to Rs 4,000 from Rs 4,300, still looking at an upside of 19.4% from the current market price.
The brokerage said that Supreme Industries delivered an in-line operating performance in Q3. However, adjusted net profit dipped 18% YoY and 7% QoQ, primarily due to weaker-than-expected contribution from associates, notably Supreme Petrochem. The company’s consolidated volume increased for the quarter, led by strong momentum in the plastic piping segment.
Underpinned by improving demand trends, the company’s management has reiterated FY26 volume growth guidance of 12–14% YoY.
PVC prices have improved sequentially in January 2026 and are expected to firm up further alongside a gradual demand recovery. “Incorporating the Q3 performance, impact of lower PVC prices and lower contribution from associates, we revise our EPS estimates down by 14% in FY26 and 3–4% for FY27–FY28,” said JM Financial.
Supreme Industries Q3 FY26
Supreme Industries’ net profit fell 18% year-over-year to Rs 153.4 crore in Q3FY26. The company’s revenue from operations for the quarter increased by 7% YoY to Rs 2,687 crore in the third quarter of the current financial year. The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs 314 crore, a growth of 1.5% YoY from the same period a year ago.
The full year margins are now seen between 13.5% to 14% from 14.5% to 15% projected earlier. For the full year, the overall volume growth guidance has been maintained between 12% to 14%.
Supreme Industries stock performance
The share price of Supreme Industries has changed a little in the last five trading days. The stock has risen almost 3% in the past one month. Supreme Industries’ share price has declined over 16% in the last six months. The stock has dropped 13% over the previous one year.