India Ratings and Research (Ind-Ra) has revised the outlook on Supreme Petrochem Ltd. (SPL) and its bank loan facilities to Stable from Positive, while affirming the rating at 'IND AA-'. This revision reflects a weaker-than-expected performance of SPL's existing businesses in H1FY26 and a six-month delay in the commencement and ramp-up of production at its acrylonitrile butadiene styrene (ABS) facility. This delay defers the increase in the proportion of value-added products and limits near-term visibility on EBITDA reaching ₹5.5 billion-₹6 billion levels. Furthermore, lower year-on-year EBITDA generation in H1FY26, coupled with a rise in net working capital requirements at the end of H1FY26, led to an increase in net debt, against a net cash position maintained since FY15. The ratings are supported by SPL's leadership position in the oligopolistic polystyrene (PS) industry and its strong financial risk profile. Ind-Ra expects the ABS facility's ramp-up to improve diversification and reduce profit margin volatility, with the company expected to turn net cash positive again over FY27. The agency's analytical approach now considers a full consolidated view of SPL and its subsidiary M/s Xmold Polymers Pvt Ltd, owing to strong strategic linkages. The company's planned capex of approximately ₹70.50 billion over FY26-FY28 is expected to be fully funded by internal accruals. SPL has commenced production at its ABS plant with a total capacity of 70,000 MT, planned to increase to 140,000 MT by FY28. The company has a market share of around 56% in the PS industry and 59% in the EPS market.