Siyaram Recycling Bags ₹5.99 Cr Order From Supreme Industries Amid 74% Profit Slump

Synopsis: Siyaram Recycling Industries secured a ₹5.99 crore brass components order from The Supreme Industries Limited, executable within just 7 days. However, with the stock down 72% in a year and FY26 profits collapsing 74%, investors need to look well beyond a single order win to assess the real picture.

Siyaram Recycling Industries Limited made a regulatory disclosure on June 20, 2026, announcing that it has secured an order from The Supreme Industries Limited one of India’s largest plastics and piping manufacturers for supply of Male Insert fittings in CPVC and brass variants, specifically 1/2″ HW CPVC, 3/4″ AQUA, and Brass 3/4″ HW (CPVC) components, among others. The total order value is Rs. 5,99,14,500 (approximately Rs. 5.99 crore), to be executed within 7 days on a fixed-cost basis.

What the Order Means

To understand why this order matters, a little context helps. Supreme Industries is a blue-chip customer, a company with over Rs. 10,000 crore in annual revenue that supplies pipes, fittings, and plastic products across India’s construction and plumbing sectors.

Winning an order from Supreme Industries for brass insert fittings the threaded metal connectors embedded into CPVC pipes to enable screw-type joints validates Siyaram’s position as a quality supplier in the precision brass components space. CPVC piping is increasingly the material of choice in Indian residential construction due to its temperature and corrosion resistance, and brass inserts are a non-negotiable part of every CPVC fitting assembly. Every apartment built, every bathroom plumbed, every hot-water line laid uses these components in volume.

It is also worth noting that this is not an isolated win. Siyaram has been steadily accumulating small orders in June 2026 alone a Rs. 3.21 crore domestic order from Anurag Impex for Brass Scrap Honey on June 18, a USD 426,000 brass billets order from Dubai-based Green Metals FZCO on June 17, a USD 213,000 order from the same Green Metals FZCO on June 11, and a Rs. 1.13 crore domestic order from Anurag Impex on June 9. Taken together, the company appears to be actively rebuilding its order momentum across both domestic and export channels.

The Financials — Where the Concern Lies

Here is where investors need to pay close attention. The order win is real, but the financial backdrop in which it arrives is challenging. For FY26 (full year ended March 2026), Siyaram reported revenue of Rs. 362 crore, a sharp decline from Rs. 511 crore in FY25, representing a 29% year-on-year drop. Operating profit fell to Rs. 17 crore from Rs. 27 crore, and net profit collapsed to just Rs. 4 crore from Rs. 15 crore in FY25, a 74% decline in a single year. The most recent half-year result showed revenue of just Rs. 150 crore, with net profit at a bare Rs. 1 crore and an EPS of just Rs. 0.33.

The deterioration is visible across multiple operational indicators. Inventory days have ballooned from 36 in FY24 to 226 in FY26 meaning the company is sitting on brass inventory for over seven months before converting it into sales. 

Debtor days have risen from 26 to 55, and the working capital cycle has stretched to 136 days from 59. These are warning signs that the business is consuming cash at a rate that is outpacing its ability to generate it. Free cash flow was negative Rs. 28 crore in FY26, following negative Rs. 43 crore in FY25, and borrowings have risen sharply to Rs. 114 crore. The interest coverage ratio stands at just 1.54 times, leaving very little buffer.

Adding to investor unease, promoter holding has declined significantly from 70.87% in September 2024 to just 51.12% by March 2026, a reduction of nearly 20 percentage points in 18 months. This level of promoter dilution in such a short window naturally draws scrutiny, even if it may reflect fundraising needs rather than loss of conviction.

Siyaram Recycling shares were trading around ₹34.50 on June 22, 2026, up marginally 0.44% intraday from the previous close of ₹34.35. Despite the recent ₹5.99 crore order win from Supreme Industries, the stock remains under pressure, trading near its 52-week low of ₹31.95, far below its 52-week high of ₹157. With a market capitalization of approximately ₹75 crore, investor sentiment remains cautious as weak FY26 financial performance continues to overshadow near-term business wins.

Siyaram Recycling Industries Limited, formerly known as Siyaram Impex Private Limited and incorporated in 2007, is a Jamnagar, Gujarat-based manufacturer of copper alloy (brass) products. The company’s operations span segregation of brass scrap, manufacturing of brass ingots and billets, and production of brass-based plumbing and sanitary components including inserts, ceramic cartridges, brass spindles, valves, and extension nipples. Jamnagar is India’s brass capital, giving the company geographic advantages in raw material sourcing and a large ecosystem of downstream customers.

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