Supreme Industries Q1 Results: Stock falls after earnings miss estimates, decline on all parameters

Supreme Industries Ltd. reported its first quarter results during market hours on Thursday, July 24. The numbers came in below CNBC-TV18 poll estimates across all parameters and also declined on a year-on-year basis. Following the announcement, the stock fell to the day’s low of ₹4,019.50However, the stock recovered after the management raised its volume growth outlook for FY26. Supreme Industries now expects volume growth of 15-17% for FY26, compared to its earlier estimate of 10-12%.
Net profit for the company declined by 26% from last year to ₹202 crore. A CNBC-TV18 poll expected the company to report a profit of ₹240 crore.
Revenue for the company decreased 1% from last year to ₹2,609 crore. A CNBC-TV18 poll had projected the figure to be ₹2,765 crore.

At the operating level, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter fell by 17.6% year-on-year to ₹319 crore, which is lower than the CNBC-TV18 poll figure of ₹380 crore.

EBITDA margin for the quarter fell to 12.2% from 14.7% last year. Margin was also lower as compared to CNBC-TV18 poll of 13.75%.

Shares of Supreme Industries fell post the earnings announcement, but have recovered from the lows to trade 0.37% lower at ₹4,118.20. The stock has been an underperformance over the last 12 months, having declined 23%.