Ladies and gentlemen, good day and welcome to Supreme Industries Q2 FY 2026 earnings conference call hosted by DAM Capital Advisors. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aasim Bharde from DAM Capital Advisors. Thank you and over to you, sir.
Thank you, Bhumika. Good evening to everyone here on the call for Supreme Industries Q2 and H1 FY 2026 results conference call. Firstly, I would like to wish everyone a happy Diwali. From Supreme, we have with us the senior leadership team as usual, who will discuss and talk about the quarter, and after this, we can open it for all of your questions. Thank you and over to you, Mr. Taparia.
Good evening and thank you, Mr. Aasim. I'm M.P. Taparia, Managing Director of Supreme Industries. I, along with my colleague, P.C. Somani, CFO, and Shri R.J. Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the unaudited standalone and consolidated financial results for the quarter and half-year ended 30th September 2025. The standalone results and the consolidated results are already with you. I'll give a brief outlook on company product operating performance and other highlights. The company sold 338,224 tonnes of plastic goods and achieved net product turnover of INR 4,951 crore during the first half of the current year, against a sale of 309,912 tonnes and net product turnover of INR 4,848 crore in the corresponding half-year of the previous year, achieving volume and product value growth of around 8% and 2% respectively.
The consolidated operating profit and profit after tax for the half-year of the current year amounted to INR 656 crore and INR 367 crore, as compared to INR 772 crore and INR 480 crore respectively for the corresponding period of the previous year, resulting in a decrease of 15% and 24% respectively. The business scenario of all the product segments of the company for the second quarter ended 30th September 2025, as compared to the corresponding quarter of the previous year, has been as under: Plastic Piping System business grew by 17% in volume and 11% in value terms. Packaging Products segment business did grow by 2% in volume and value terms. Industrial Products segment business did grow by 8% in volume and 14% in value terms. Consumer Products segment business grew by 6% in volume and did grow by 1% in value terms.
The overall turnover of value-added product increased to INR 1,073 crore during the current quarter, as compared to INR 907 crore in the corresponding quarter of the previous year. The company had net cash surplus of INR 49 crore, as on 30th September 2025, as against cash surplus of INR 944 crore, as on 31st March 2025. Looking at the better prospects in the second half of the year and acquisition of housing capacity and launching of silent pipe, the board has declared interim dividend at 550%, that is INR 11 on each equity share of INR 2 each against INR 10 on equity shares in the previous year. The world business outlook: the world economy is going through a low growth phase. This has resulted in pressure on crude oil prices. Several new petrochemical plants have gone into production, and further additional plants are under construction.
The combined effects of these economic developments have put the polymer price range in a downward trend. The company believes that this downward trend may subside going forward unless crude oil prices go down drastically. The company is operating in various segments of the business. The company has grown 8% in overall volume in the first six months of this year. The company expects to grow 12%- 14% in volume in this year. Plastic piping business growth in agriculture applications was adversely affected due to the early arrival of the monsoon. The rains remained active for an extended period, which has resulted in severe degrowth in plastic piping applications in agriculture. The central and state government have also provided less money in the infrastructure segment related to demand in the Plastic Piping System. This has resulted in lower growth in the Plastic Piping System in the first half.
The company has grown in the first half of this year in the Plastic Piping System by 11% in volume. The company expects the demand from the agriculture segment will rebound in the second half of this year. The company does maintain its volume growth target between 15%- 17% in the plastic pipe segment for the current year. The company has successfully completed the acquisition of the housing business. We acquired the housing plastic pipe business, including three manufacturing sites situated in Banmore in the Madhya Pradesh, Timmapur in Telangana, and Neemrana in Rajasthan, having installed capacity of around 71,000 tonnes per annum as a going concern on a slump sales basis effective August 1st, 2025.
The company has also entered into a master technology license agreement with Wavin B.V. Netherlands and Orbia Group Company to access, on an exclusive basis for India and other SAARC countries, all its existing technology and other new technologies to be developed during the period of seven years pertaining to the Plastic Piping System for the building and the infrastructure segment effective from August 1st, 2025. The acquisition and licensing arrangement would pave the way for the business of the plastic piping division to grow in terms of capacity, market reach, and systems to handle water in an efficient manner. Capacity expansion at various locations for the plastic piping business and potential Packaging Products is progressing smoothly. The company plans to set up a new unit for material handling products at its newly acquired land in Malanpur in Madhya Pradesh to expand its footprint in Central India.
This shall be taken up in hand in this financial year, along with the other greenfield units at Bihar and Jammu for the Plastic Piping System division and in Western Maharashtra for the Packaging Products division, for which requisite land is in the possession of the company. Newly installed production equipment for the PP silent pipe system in technical collaboration with [Mr.] POLOPLAST of Austria has commenced production. Products with the brand Serene and Serene Plus have been launched in the country overall in this month. The company is expanding its capacity and range of Electro-fusion Fittings and exploring the export market. The company continues to invest and enlarge the product basket in all its divisions and to remain focused on increasing the range of the product. Construction work assigned for the PVC profiles for windows project is nearing completion.
Initial production line equipment has been installed, and production tests have commenced. The company expects to launch commercial production in the market during December 2025. The initial focus of the company is to launch the customized window in the U.P., NCR, and Haryana regions. The company would plan thereafter for more geographical reach within India, with the setting up of a fabrication facility in other parts of the country. During the first half of the current year, the company has made a capital outflow of INR 869 crore, including the acquisition of the housing business. The company expects the total cash outflow of about INR 1,300 crore towards existing and new capital commitments, including the acquisition of the housing business. The entire capital shall be funded from internal accrual. All other product divisions, except the Industrial Products division, are faring well and envisage moderate growth during the year.
The Packaging Products division is specifically driving its growth plan by increasing its product range and offering customized solutions. The same is yielding positive results and paving the way for achieving double-digit volume growth and revenue milestone of INR 1,000 crore for the year. The company has started the execution of the awarded contract for the supply of 200,000 numbers of 10 kg composite LPG cylinders to Bharat Petroleum Corporation Ltd and 2 lakh 31,000 numbers of composite cylinders from Indian Oil Corporation Ltd. The company has also expanded its export market reach and witnessed a suitable result in terms of material capacity utilization. The division has also executed its first order of CNG cascade cylinders and is expecting a repeat order. This is a brief and overall summary for the quarter and half-year ended under reference.
Thank you for your patience. Now, I and my colleagues, Shri P. C. Somani and Shri R.J. Saboo, are available to reply to various queries raised by all of you. Thank you very much.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Thank you, sir. Sir, a couple of questions. First, I just wanted to understand, can you provide the Wavin volume in Q2?
Wavin volume, we sold 3,000 tonnes because we acquired in August 1st. We got two months, August and September, so we were settling all the old account only also. Around 3,000 tonnes totally we sold.
Okay. For the full year, we were previously looking at around 30,000 odd tonnes. Will that number remain the same?
Number remains the same, but now as we have just started properly only from October, we believe this year the sale may be around 20,000 tonnes in eight months.
Okay. Considering the overall, particularly the piping volume, 11% odd that we have done in the 1 H, to achieve 15%- 17% for the full year, we need to have around 20% kind of growth in the second half. Have we started seeing that kind of momentum in October itself?
Yes. In the second quarter, we have grown by 17%. In the first quarter, we have grown less because the segment got beaten, but in the second quarter, we have grown already by 17%. We are very confident.
Okay. Got it.
Now the rents have subsided, and the reservoirs are full with water. The agriculture market is going to come in a big way from November onward.
Yeah. Actually, my question is on that part only. This quarter, if you look at the Q2 piping realization, which has gone up by close to 11%, and given that the, let's say, additive maybe, let's say, come from the 1st November itself where we are looking at four or five rupees per kg PVC price hike, in that scenario, sir, two things. One is, is there any product-specific changes? That's why in the second quarter, piping realization has gone up by significantly 11%. Now, if the additive comes and, let's say, five rupees hike is there from 1st November, how one can look at the realization for the third quarter?
I can't talk about additive, which is imaginary. As long as the income, I can't talk anything about additive. I have talked only about volume. The volume will grow between 15%- 17%. In the second quarter, the volume might be grown by 17%. We are fully aware of our responsibility when we say 15%- 17% volume growth, which means the second half, the volume should be higher than 17%. Only then can we attain 15%.
Got it. Lastly, sir, on the margin front, EBITDA margin front, in one edge, we have done 12.3% odd. Q2, last time, we were saying that around 14.5%-1 5.5% kind of an EBITDA margin for this year. Is there any change? If not, then we need to have a 17%- 19% kind of an EBITDA margin in the second half to achieve this number.
Generally, in our business, the second half is better. In the first half, the three months of any season, the demand goes down, the margins are under pressure, and the raw material price of iron already is so much, there's not much scope now for raw material price to fall unless the crude price goes down drastically.
Got it, sir. No, no, I understand. Even if, let's say, the prices remain stable, then also still we believe that we can see a 3%-4% kind of an EBITDA margin improvement from currently 12.3% to 17%, 16%?
I don't know. We told them our EBITDA margin for the full year will be between 14% and up to 15%.
Okay. Got it. Lastly, sir, in terms of now, we have a debt also versus the cash, which has significantly now reduced with the Wavin acquisition and the CapEx that we have planning. On the full-year basis, how one can look at in terms of the debt level and also similarly for the finance cost?
We have no date level. We have no date level. We will not have any date level.
Sir, on the gross front, we have a INR 240 crore debt, but given the CapEx is there, do we believe that the debt level will again come down at a gross level?
At a gross level, whatever date we have taken is always temporary in nature. It's short term. By the end of December, it will also go away. Once we look at the full year, March 2026, we'll be having a reasonable cash surplus in hand because there won't be much pressure on the CapEx payment now.
Got it, sir. I have further questions. We'll come back in a few. All the best. Thank you, sir.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Sneha Talreja from Nuvama. Please go ahead.
Good evening, sir, and thank you a lot for the opportunity. I just wanted to understand on the margins front, while we have seen quarter-on-quarter improvement in realizations, and even our gross margins have improved, we've seen a fall in EBITDA margins. What would be the impact of Wavin losses that we would have seen this particular quarter?
At the operating level, Wavin does not give any negative margins. They are plus only.
What about inventory loss? Have we seen any inventory loss this particular quarter?
Inventory loss for the first half, overall in the company, there is an inventory loss. The raw material price has fallen. That is not only PVC, CPVC, polyethylene, all the prices are dropping. Inventory loss in the first half may be around INR 50-INR 60 crore each.
Understood. Any other insight that you would want to give because of which EBITDA margins are lower on a quarter-on-quarter basis, leaving apart the depreciation impact because you've added substantial capacity in this particular quarter?
No, no. Because of the lower volume than anticipated, that's why the fixed cost, which is otherwise aggregated on the larger volume, remained a portion on the lower volume. There is no specific reason for lower margin. We are anticipating good margins in the second half. Overall margin for the year should remain between 14.5%- 15% at the operating level.
Got it. Sir, could you speak about the demand on the ground? You have mentioned on the agri part and the infrastructure side that we could read in the press release. How is the demand in general?
We deal mostly in agriculture and housing. The demand is going to look quite robust. In infrastructure, as on today, whatever demand is coming, they are not related to our pipe demand. We hope that now the rents have subsided, infrastructure demand may come. We have to watch. We are not a big player in the infrastructure market.
Understood. On the plumbing side, you continue to see demand being robust?
Yeah, yeah. On the plumbing side, yes.
Plumbing side, I guess, sidebar side, we expect robust demand in the second half.
Understood. Lastly, in case we can get some CapEx breakup, you have done substantial CapEx in the current quarter. Leaving apart even Wavin, which are the product segments where we have added capacity substantially?
When it's a window profile, we have around INR 200 crore. In the silent pipe system, we invested around INR 80 crore each. Last segment, new segment is going to be joining our company.
Understood. Thanks a lot, sir. All the best. I'll come back in a few.
Thank you.
Thank you. The next question comes from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Hello. Hi. Thank you for the opportunity. I just want to understand on Wavin. As you said, Wavin has been profitable this quarter. When do you think the Wavin margin will be in line with the company's margin? What steps are you taking? Earlier, Wavin was loss-making. What steps are you taking to possibly ramp up its operations?
Wavin price list has been changed to our price list. Wavin will be a regular margin just like us from November.
Got it.
We have cut their various costs, in-shop costs, and their ground costs. We cut many of their costs.
It's volume improvement, ultimately.
Volume improvement, better utilization of the plant.
Understood. Got it. As the Wavin sale is ramping up, will it impact, you know, Supreme sale? Secondly, you plan to rebrand Wavin under Supreme, some of its, you know, sales. How are you planning going forward?
Along with the Wavin asset, we got 120 share team members in our company. We got 266 new distributors and dealers. Somewhere where our reach was poor, we got distributors and dealers, and our sales force has been strengthened by the addition of 120 numbers.
Okay. Got it. One last question from my side. As you highlighted, you know INR 50 crore, INR 60 crore is the inventory loss in H1. This was the same number in Q1. Possibly, Q2 won't be having any inventory loss element. Is this understanding right? Secondly, still, you know Q2 margin looks very supplied, 12.4%.
If we share some product, we might have gained something. I think we believe that whatever inventory loss was there, it has been already behind us.
Got it. What I'm trying to understand, this quarter, your EBITDA margin is 12.4%, while year-on-year, the margin in Q2 FY 2025 was 14% in spite of inventory loss. If you exist for inventory.
Maybe our margin cost is lower range, but we may be selling more valuable items. Valuable items have higher margins. It's very difficult to just quantify like that.
Understood. Got it. Thank you. That's it.
Thank you. Ladies and gentlemen, a reminder that you may press star and one to ask a question. The next question comes from the line of Vipulk umar Shah from Sumangal Investments. Please go ahead.
Hi. Thanks for the opportunity. Why is the consolidated margin, consolidated net profit INR 30 crore lower than the standalone profit? Any particular reason?
No. In the standalone profit, we have the income from dividend from Supreme Petrochem, which was INR 43 crore in this half-year. Whereas in the consolidated, that goes away, and the share of profit comes from the consolidated results.
Okay. Thank you. None of the subsidiaries are making losses, right?
No, none. No.
Okay. Thank you, sir.
Thank you. A reminder to all the participants, please restrict yourself to two questions. Should you have follow-up questions, please rejoin the queue. The next question comes from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Sir, can you tell us with now 71,000 Wavin, our piping capacity is how much? By the end of this year, it will grow to how much?
Our capacity by the end of March 2026 would be 1+ million . In the Plastic Piping System, I am talking. For the company as a whole, it will be 1.2+ million .
Okay. Got it. In terms of this quarter, specifically, in the broader sense, in terms of whatever the growth that we have achieved on the volume front in the piping, will you help us in terms of the CPVC and the PVC? Specifically, CPVC growth was how much? With Wavin, going forward, is there a broad idea how the CPVC volume growth looks like?
CPVC growth in the first half has gone up by 26%.
In volume?
In volume.
Oh, for us?
Our company we are talking now. We can talk about our company only.
Yeah. No, for industry, it would be a much lower number then.
Industry, I have no idea.
Okay. Got it.
Supreme Industries growth is 26% in the first half.
Got it. Got it, sir. I got the point. I was just trying to understand whether we have gained the market share or not on the CPVC front.
I have no idea, but I believe this is my conjecture that our market share must have gone up.
Got it. That may be the reason why the Q2 plumbing realization has significantly increased. Maybe this quarter, we could have a higher share of the CPVC in the overall piping volume, and that may be the reason the Q2 realization, which is the 11% odd increase. That's why I was trying to understand.
Thank you for your assessment. Yeah, please.
Yeah. Another, sir, in terms of last time, we have said that the [GJM], so currently, how much broader our receivables are there? Is there any improvement on the [GJM] in terms of the government releasing funds?
Total outstanding is 17 days of the sale.
Sorry, sir?
Seventeen days of the sale remain outstanding. 17 days of sale.
Okay. Okay. We are not seeing any improvement there.
Seventeen days, we are quite happy. We are quite happy with the result. Seventeen days also are comparatively consistently quite low.
Okay. Sir, whatever the slightly lower reduction in the volume guidance, leaving the plumbing, the three segments, this is particularly from the Industrial, that's why we are seeing a lower volume guidance.
We have given 15%- 17% volume guidance. Now we are repeating the same thing.
We have no requirement for the company.
No.
Twelve to 14%.
I think this is what we told you in April. This is what we are saying today in October. There's no change.
No, sir. I think last time, we were looking at 14%- 15% overall, and now we are looking at 12%- 14%. Is the Industrial segment the reason that that's why we are seeing or giving a 1% or 2% lower?
Because the company's business volume is very low.
Okay. Got it.
The main segment is now volume in Plastic Piping System, which when last April was about 15%- 17%, and we are maintaining the same percentage today.
Okay. Sir, any broader idea that this quarter in terms of overall the entire plastic pipe and plumbing volume growth would be how much for the industry?
We have no idea.
We could say we have already stated for the year. For the quarter, we don't know. Industry.
W e have no idea. We can talk only about our company.
For the industry, for the full year, would be 8%, 9%? That's the fair number?
Maybe not. We can better talk to the Reliance Industries. They will be a better person, better position to reply you.
Okay. Thank you, sir, and all the best.
Thank you. The next question comes from the line of Kumar Saumya from Ambit Capital. Please go ahead.
Hi, sir. Good afternoon. Sir, just one question. If you could just give a little more clarity on the margin as to what should be the annual number, annual margin we should be looking at, and what is the number that you think should be deliverable at least in the FY 2026?
Annual turnover should be between INR 11,000 crore- INR 11,500 crore. Our operating margin should be between 14.5%- 15%. Hello?
Yes, sir. Am I audible, sir?
Am I audible? I told you.
Yes, sir.
We anticipate our annual turnover between INR 11,000 crore- INR 11,500 crore. We expect our operating margin overall for the year will be between 14.5%- 15%.
Got it. What is the CapEx that we are looking at from the second half perspective?
We believe overall CapEx should be around INR 1,300 crore, depending on how we are able to order and book the order as we are negotiating. In the first half, we paid INR 869 crore as CapEx outflow. As my colleague has told you, we will be having a reasonable good cash surplus on the 1st of April 2026.
Yes, sir. Thank you, sir. That will be all. I'll come back in a bit. Thank you.
Thank you.
Thank you. The next question comes from the line of Raman K.V. from Sequent Investments. Please go ahead.
Hello, sir. Can you hear me?
Yeah, I can hear you. Thank you very much. Please.
Sir, I joined the call a little late. I just want to understand. There has been a big increase in the inventory levels. Can you give the reason why there is an increase in the inventory levels? If we are converting this inventory to our revenue in the coming quarters, will there be an impact on the margins? My understanding is we will sell this inventory at a lower level.
No. We will price the inventory at a relative value only. We believe that the polymer price should come close to bottom only unless the crude price goes down dramatically. The crude price can go down at a very low level. Today, prices are hovering between $62- $65 Brent Oil. If we go to $55, we may have another inventory loss. We are too small to predict about the crude oil price going forward. This is quite a low price of crude oil, which is prevailing today in our country, prevailing in the world, actually. It is a very low price. People don't anticipate. If it goes very low, next quarter, it will come down, and then there will be a shortage of crude oil later on going forward.
No, I just want to understand what's the primary reason for increase in the inventory levels during the quarter?
Because we achieved good business in the second half.
The business was good in the second half.
We gave good capacity and good prospects for the second half. This is our business experience for many years. The second half for our business is better than the first half.
Okay. Thank you, sir.
Thank you.
Thank you. The next question comes from the line of Utkarsh Nopany from BOB Capital Markets. Please go ahead.
Yeah. Good evening, sir. Sir, my first question regarding the pipe segment margin. If we see our pipe segment EBITDA margin was down by roughly 250 bps on a YoY basis, despite we have seen a pretty good volume growth of 17% in this quarter. Our share of value-added product has also gone up quite sharply, which was earlier 40%. Now it has gone up to 45%. What we understand is that last year, we booked an inventory loss of INR 40 crore, whereas this year, we have not seen any inventory loss in the September quarter. Can you please, sir, help us understand what is the reason for the margin contraction in the pipe segment?
I will show you. In the first half, we lost around INR 60 crore in inventory.
Sir, I think we have booked INR 50 crore-INR 60 crore inventory loss in the June quarter only. If we are saying that we have booked INR 50 crore, INR 60 crore inventory in the first half, that means that there was no inventory loss in the September quarter.
The second quarter, there was too much rain, so the prices have to drop down. This was a slow season. The second quarter is a slow season period due to annual pipe demand. Pipe demand gets affected due to the rainy season. The second quarter, prices and margins will be always low. We try to give the off-season discount to the customers.
There was an extended rainfall also, no?
No, sir. My reason was that we have not seen any negative operating leverage. We have seen positive operating leverage benefit only because our volume was up 17% and our realization on the quarter-on-quarter was up pretty sharply. Fine, sir. I will just take some of it offline, sir, from you. My second question was.
If you are looking at EBITDA margin with Wavin coming into fold from August onwards, the depreciation has increased definitely.
Okay.
That's when the EBITDA margin would be impacted.
Okay. Okay. Got it, sir. Sir, my second question is on the Industrial and Packaging segment volume. What we have seen is that the Industrial segment volume was down even on a weak base of last year, and even Packaging segment volume also came under pressure in the September quarter. What could be the reason for the same?
In my opening remark, I said all our divisions worked well except the Industrial Component division. The demand from our customers who are making the primary product in the market, the demand was low in the second quarter. In the Packaging segment, due to the rainy season, demand was low. There is no issue. Packaging segment is going to have a good growth this year. As we informed that the property Packaging division business will grow in double digits this year and maybe INR 1,000 crore this year, which is a significant achievement for the company.
Okay, thanks a lot.
The Plastic Piping division, the division which is going to reach INR 1,000 crore, is the property packaging division in the company.
Okay.
Thank you. The next question comes from the line of Navid Virani from Bastion Research. Please go ahead.
Hello. Am I audible?
Yeah, you are audible, please.
Yes, sir. Thank you for the opportunity, sir. I have a couple of questions regarding Wavin. We say that when we have acquired Wavin, we have also acquired some technology with it. The first question which I want to ask is, when do we expect these acquired technologies to start benefiting our piping segment?
We have told that we have entered into a technology license agreement. There were several technologies in the portfolio. We have to decide which technology we want to take. Option is given to us. We are studying. We are developing all the market first of the product, and then only we will handle even if we acquire any technology. Once we acquire any technology license, we will know from all our partners immediately. As on today, we have still not started negotiations for acquiring any technology. We have got the license from them. We would have full authority on an exclusive basis to acquire any of the technology which is in their portfolio. We will decide when we meet in January. We may be able to drill down on some technology, and then we will inform everybody.
Sure, sir. Thank you for that clarity. Very clear. Next up, I wanted to understand the overall outlook of the business, let's say, in three to five years in terms of exports. From what I am able to understand right now, the export as a % of our total business today is very small. How are we planning to build the exports with us? What can be the contribution of exports, let's say, three, five years down the line? Is there any target which we are working with?
The only thing, earlier, we were exporting only through our Dubai office. Now we have put more resources based in India also. We're opening other markets. We are very optimistic that our export business will go on growing quarter after quarter. Percentage, I can't say. We wanted to reach even 5%. As on today, we are less than 3% of our turnover. Our aim is to increase the target of export as much as possible. In India, generally, there are too many constraints on boosting export of plastic products. They are now being handled by the government, central government, state government also very effectively. We hope that exports will start growing quarter after quarter from now.
Noted, sir. Noted. Is it right to assume that the Packaging segment will lead the charge as far as export business is concerned?
Plastic Piping and Packaging , both.
Sure, sir. Sure. Okay, sir. That's it from my side. Thank you, and wish you all the best.
Thank you very much.
Thank you. The next question comes from the line of Mehul from NMB Securities. Please go ahead.
Hello. Am I audible?
Yeah, please.
Hello.
Yeah, please.
Yeah, sir. My question is looking at, we're having Wavin India's turnover was INR 1,000 crore in FY 2024.
I'm sorry to interrupt, Mr. Mehul. Your voice is not audible. Can you please speak in a more network area?
Is it audible now? Hello?
Some improvement.
Am I audible now? Hello?
Yeah, please.
No, sir.
Hello?
No, not clear.
Sir, it's still muffled.
I already said some improvement. Yeah, yeah.
Hello, am I audible now?
Yeah, please. Ask your question.
Yeah, sir, I was just asking that, as far as in the revenue turnover.
Mr. Mehul, I'm sorry to interrupt. Can you please speak through a handset?
No, no. She's waiting also. We can't hear her. Clearly.
Mr. Mehul, can you please speak through a handset?
Hello?
Yeah, please.
Hello, am I audible?
You are clear now. Yeah, please.
Yes, sir. Now you're audible.
Yeah. I was just saying that a revenue turnover for FY 2024 was INR 1,000 crore. If I assume the similar turnover in FY 2025 and the capacity is around 73,000 metric tons, realization per metric ton is around INR 1.35 lakh, which is broadly similar for Supreme Industries as well. If I see this, Supreme Industries is currently trading around INR 50,000 crore. If I divide it by the capacity which currently Supreme Industries has, which is 8.7 lakh metric tons, Supreme Industries is trading around INR 5.74 lakh per metric ton. Whereas the company, the Wavin, you bought, it's around INR 41,000 per metric ton. Why is it so discount you have brought Wavin?
Mehul, I think your understanding is wrong of the subject. Wavin turnover, what you are looking for FY 2024, was inclusive of their tank business, which they have divested in 2024, 2025. The pipe turnover, piping turnover, what we have acquired was less than INR 600 crore.
Yeah.
We acquired Wavin turnover along with [Vector]'s turnover. Wavin [Vector] is a partner. Wavin [Vector]'s tank. They are marketing [Vector]'s tank.
Okay, sir.
Okay, thank you.
Thank you. The next question comes from the line of Vandit Shah from Abakkus Asset Management LLP. Please go ahead.
Hi, sir. Thanks for the opportunity. Sir, I just had one question. How is the inventory levels currently with the dealers? Is it normal or still we are waiting for a restocking of inventory?
As per us, it may be lower than normal.
Okay. Do you believe that the restocking might happen in the October, in the November month before the ADD comes in or in the November, December months?
No. With our ADD, also, they have to start buying as well in the pre-season time. From November to May, the demand remains robust for Plastic Piping divisions. They have to maintain the stock as well. They are logging service to the customers.
Okay. Thank you, sir.
Thank you.
Thank you. The next question comes from the line of Karan Bhatelia from Asian Market Securities. Please go ahead.
Hi, Karan. Am I audible?
Yeah, please.
Yes. Sir, in the first quarter, we mentioned that we executed our PE piping order for gas applications. You want to explain lights with respect to the FY 2026, 2027 variability on the revenue?
Now we have got DVGW approval for our fitting also. We are the only company which is able to supply piping fitting both from the same company. We are very optimistic now that going forward, we will be able to meet the requirement of several gas companies piping fitting together. The certificate is only issued in the last week only. We can talk better when we meet in the month of January. We expect growing business. Closing business is not going to be very large, but it's a prestigious business. This can help us to serve the community better.
What's the need to the market to satisfy this need?
Comparing to our business of INR 8,000 crore, INR 9,000 crore of plastic piping, this cannot be a large business. It's below INR 50 crore.
Right. Right. Sir, any update on the greenfield facilities for the Plastic System over the next two years?
Plastic piping next two years, I'm not aware today. We hope that we must go on growing better than the country. We told earlier also that if our country grows 2% more than GDP, we must grow 2%, 3% more than the country. We will grow more and more.
Last time, you were operating land approvals at Bihar, Jammu.
Jammu, we have still not started. The land is in our possession. We were land in Bihar also in our possession. Jammu also in our possession. We still have not started any manufacturing activities. First, we will take up the plant at Bihar, and Jammu will come later. We hope that all the capacity should be up and running in the beginning of 2028, first quarter, 2028, 2027 first half.
Thank you. Thank you for the clarification. That is fine.
Thank you. The next question comes from the line of Vipulk umar Shah from Sumangal Investments. Please go ahead.
Sir, are we required to pay any royalty to Wavin for using their technology? How does it work?
Yes, whenever we acquire technology, we have to pay them royalties.
Sorry, sir?
Whenever we acquire a new technology from them, on the technology turnover, we have to pay them royalties.
On these 71,000 tons of capacity, we will not be paying any royalty, right?
We've already paid them INR 260 crore each.
Okay. Sir, since we have very little cash left, what is your CapEx guidance for next year, sir?
Next year, CapEx will tell you in April.
Okay, sir. Thank you.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Thank you very much for a very intelligent question. We hope that we have satisfied all the questions raised by our partners. Thank you very much.
Thank you, everyone.
Thank you, everyone.
We close it.
On behalf of DAM Capital Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your line.