Share Market Today Live Updates 26 May 2025: Supreme Petrochem – Buy
👉FY 2026 & Future Outlook :
▫️No specific revenue guidance, but management working towards ~90% as seen in FY25
▫️Q1 FY26 is performing strongly, compared to the previous year’s Q1
▫️EBITDA margins expected to maintain ~17% & improve further via backward integration through the new 1.6GW solar cell line, potentially reaching upwards of 25%
▫️Module price fluctuations are stabilizing, and raw materials costs are also expected to align but when they decline, EBITDA margins increase because Alpex adds a fixed absolute margin to the bill of materials (BOM)
▫️Depreciation from new facilities will only impact FY26 for a partial period (a quarter or two)
▫️Management acknowledged voluntary transition to quarterly updates
👉Current order book and pipeline:
▫️Current order book : 1400cr. Blended inferred execution timeline basis management estimates : 12-15 months
💠Order book includes 349cr (EPC), 210cr (PV modules), 65cr and 45cr (solar water pumps), 245cr, and 758cr (private sector)
▫️Pipeline :
💠Additional 1.2 GW module line at Sikandrabad; total 2.4 GW module capacity by FY26 end. A major order to cover 50% of the new 1.2 GW module capacity is expected soon
💠1.6 GW solar cell (monocrystalline and TOPCon) manufacturing line is under construction, to be rolled out in three phases (500 MW, 500 MW, and 600 MW) over the next two years
💠Aluminum Frame Manufacturing: Expansion to 12,000 metric tons per year at the Kosi Kotawu facility
💠150 MW of EPC projects and 100 MW of independent power producer (IPP) projects are targeted by FY27
💠Green Hydrogen R&D: Through the subsidiary Alpex GH2, the company is researching hydrogen storage technologies, minimal FY26 impact
💠Madhya Pradesh Facility: 21 acres of land allocated on a concessional lease to support these project alongwith existing Kosi & Sikandrabad facilities
💠Exports currently account for ~2% of revenues; using upcoming facility plans to dedicate a portion of capacity to exports, particularly to the USA
👉 Others :
▫️Debt levels are expected to remain low, with current minimal debt at 15cr and CapEx (400cr in FY26, 242cr in FY27) to be funded through internal accruals, minimal debt, and possible equity dilution
▫️Approximately 500 MW of modules in terms of volume contributed to the 660cr module revenue in FY25 (out of 780cr total)
▫️The supply of silicon wafers for the cell line is secure, with abundant availability from China, Taiwan, Korea, and emerging Indian facilities
▫️Receivable days are as per industry standards, doesn’t foresee cash flow issues despite rapid growth. Working capital limits of ~130cr (including non-fund-based limits like bank guarantees) are sufficient, with banks open to providing additional limits
