Supreme Industries shares fall 5% after Q2 net profit drops 20%: Should you buy, sell or hold?

Supreme Industries share price

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26 Aug, 2025 12:21

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The shares of Supreme Industries dropped nearly 5 percent on October 28, a day after the company released its results for the second quarter of the financial year 2026. Brokerages have mixed reviews for the stock.

The shares of the plastic products manufacturer hit an intraday low of Rs 3,815.50 apiece, before recovering some losses to trade over 4 percent lower at Rs 3,828.50 apiece, as seen at 12.24 pm.

Supreme Industries Q2 Results:

Supreme Industries on October 27 reported a consolidated net profit of Rs 164.74 crore for the July-September quarter of the financial year 2026. This marks a 20 percent year-on-year drop from the Rs 206.60 crore net profit reported in the same period last year. The firm’s revenue from operations meanwhile rose over 5 percent YoY to Rs 2,394 crore in Q2 FY26.

Along with the Q2 results, the company also announced an interim dividend of Rs 11 per equity share for the financial year 2026. The record date to determine the eligibility of the shareholders set to receive the payment has been set at November 3.

CLSA on Supreme Industries:

CLSA kept a ‘Hold’ call on the stock, but cut its target price to Rs 4,275 per share. The latest target price implies an upside potential of nearly 7 percent from the stock’s previous closing price of Rs 4,000.90 per share.

The international brokerage said that the firm posted weak Q2 results with EBITDA declining 7 percent YoY. It noted that volume rose 12 percent YoY, partly helped by the Wavin acquisition.

The company has guided for FY26 volume growth of 12 percent-14 percent, and an EBITDA margin of 14.5 percent-15.5 percent. The management is hopeful of a demand uptick in the second half of FY26, driven by agriculture and infrastructure. If demand recovers, actual volume delivery could be close to its guidance, though margin expectations look tough to be met, CLSA said.

Yes Securities on Supreme Industries:

Yes Securities kept a ‘Neutral’ call on Supreme Industries, with a target price of Rs 4,083 apiece. This implies an upside potential of more than 2 percent from the stock’s previous closing price. The domestic brokerage said that the company posted better than expected volume growth, but margins disappointed.

PL Capital on Supreme Industries:

PL Capital however upgraded the stock to rating from ‘Accumulate’ to ‘Buy, citing recent correction in stock price. The domestic brokerage noted that the volume growth was 11.8 percent above its estimates of 6.8 percent. Supreme Industries expects H2 FY26 to be better than H1 FY26, supported by the likely imposition of ADD on PVC resin, improved agriculture demand, and higher government spending, PL Capital said.

JM Financial on Supreme Industries:

JM Financial maintained its ‘Buy’ rating on the stock, with a revised target price of Rs 5,180 per share. This implies an upside potential of more than 29 percent from the stock’s previous closing price. The brokerage said that the firm delivered an in-line operating performance.

Supreme Industries share price history:

The company had released its results during market hours on October 27. The stock had dropped nearly 3 percent intraday before closing flat yesterday. The stock has now extended losses.

Also read: Our LIVE blog on stock market updates

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.