Century Plyboards (India) Limited — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Century Plyboards delivered a strong Q1 FY26 performance with robust consolidated revenue growth and improved EBITDA margins, primarily driven by the Badvel plant and strong segmental performance in Plywood and MDF. The Laminates segment showed signs of a turnaround, and the new Particle Board plant is poised for significant volume ramp-up. The company is also focused on debt reduction and strategic initiatives like digitization and new product development.

Highlights

  • Consolidated revenue grew 16.3% YoY, with stand-alone revenue up 6.8% YoY.

  • Consolidated EBITDA (ex-forex) improved to 12.5% from 11.2% in Q1 FY25, driven by Badvel plant contribution.

  • Stand-alone EBITDA (ex-forex) was 12.7%, marginally lower due to higher Q1 advertising and promotional spend.

  • Plywood segment achieved 15.3% YoY top-line growth and a 13.8% EBITDA margin.

  • MDF business recorded 23.7% YoY consolidated revenue growth and a 14.3% EBITDA margin.

  • Laminates segment showed a turnaround with 12.8% YoY and 1.9% QoQ revenue growth, and a 5.9% EBITDA margin.

  • New Particle Board plant in Tamil Nadu commenced commercial production, expected to drive significant volume growth from H2 FY26.

  • Working capital cycle improved from 76 days to 71 days, primarily due to better raw material inventory management.

Key financials

  1. Revenue (Consolidated) — +16.3%YoY
  2. Revenue (Stand-alone) — +6.8%YoY
  3. EBITDA (Consolidated, ex-forex) 12.5%
  4. EBITDA (Stand-alone, ex-forex) 12.7%

What they filed

Q1 FY27: revenue up 32.5%, net profit up 38.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,063 1,004 1,049 1,017 1,205 +13%1,147 +14%1,277 +22%1,348 +33%
EBITDA122 104 128 112 139 +14%125 +20%143 +12%172 +54%
Net profit76 64 71 68 73 −4%59 −8%77 +8%94 +38%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthEBITDA Margin
Plywood15.3%13.8%
Laminates12.8%5.9%
MDF—14.3%
Particle Board——

Capital allocation

high confidence
  • Capex Capex disclosed
    • New particle board plant in Tamil Nadu commenced commercial production
    • Plywood Hoshiarpur plant to go live
    Commercial production at our new particle board plant in Tamil Nadu commenced towards the end of Q1. (Sanjay Agarwal, page 4); The update is, we are progressing -- we're going to soon start work and we should have something by -- it should go live by next year Q2 this time. (Nikita Bansal, page 9)
  • Debt Net ₹1,400 Cr
    • Repayment Repay majority of long-term debt, aiming for close to 0 long-term debt within 2 years. ₹400 Cr
    I think consolidated debt was about INR1,400 crores as of March. (Rahul Agarwal, page 14)

Guidance & targets

Volume

  • Plywood Sales Growth Volume · this year · High confidence 10%+
    we will continue to say that we will deliver 10% plus growth this year.

    — Nikita Bansal

Revenue

  • Laminates Revenue Growth Revenue · current year · High confidence 20%+
    So like I said, our target is to do 20% plus in terms of revenue growth.

    — Keshav Bhajanka

  • MDF Revenue Growth Revenue · High confidence 20%
    I've already mentioned, 20% revenue growth with 15% EBITDA guidance.

    — Keshav Bhajanka

  • Particle Board Total Turnover Potential Revenue · Medium confidence in excess of INR500 crores
    For Particle Board, you will see our total turnover potential will be in excess of INR500 crores from the existing line.

    — Nikita Bansal

Profitability

  • Laminates EBITDA Profitability · current year · High confidence mid- to high single-digit
    And this together with high single digit or mid- to high single-digit EBITDA for the current year, that is what we are targeting.

    — Keshav Bhajanka

Margin

  • MDF EBITDA Margin Margin · High confidence 15%
    I've already mentioned, 20% revenue growth with 15% EBITDA guidance.

    — Keshav Bhajanka

  • Particle Board Steady State EBITDA Margin Margin · High confidence 15%
    Having said that, EBITDA margin that steady state will look at 15%.

    — Nikita Bansal

  • Particle Board EBITDA Margin · from next year · High confidence double-digit EBITDA plus
    But I'm assuming that from next year, we will be at double-digit EBITDA plus.

    — Nikita Bansal

Capacity

  • Particle Board Capacity Utilization Capacity · by the third year · High confidence 90%+
    And as you know, that we always attempt to reach 100% capacity utilization, 90% plus by the third year.

    — Nikita Bansal

Debt

  • Long-term Debt Repayment Debt · within 2 years · High confidence majority
    long-term debt within the course of the next 2 years, I think we'll be able to repay the majority of the long-term debt... we will be coming close to 0 long-term debt on the books.

    — Keshav Bhajanka

What to watch in Q2 FY26

Particle Board volumes spike

H2 FY26 (next quarter onwards)
Current New plant just commissioned, stabilizing this quarter.
Target Huge spike in volumes.

Why it matters

New plant is a key growth driver; volume ramp-up is crucial for revenue and profitability.

But from next quarter onwards in H2, you will see a huge spike as far as particle board volumes are concerned.

Risks & concerns

  • Input cost volatility (timber prices)

    medium

    Timber prices for MDF/Particle Board are rebounding slightly, but management hopes peak prices are behind; monsoon causes temporary spikes. Plywood timber prices are stable.

    Management acknowledged

  • Oversupply and competitive intensity in MDF/Particle Board market

    medium

    Still some oversupply in MDF market, but capacity utilization is improving. For Particle Board, new quality product is expected to drive rapid scale-up despite pricing challenges.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
Plywood growth normalization vs. guidance Direct
in plywood, we've always believed to give a 10% plus. Now 10% plus can vary... we will continue to say that we will deliver 10% plus growth this year.

Clarifies management's long-term growth expectation for plywood despite strong Q1, indicating a focus on consistent, sustainable growth rather than just peak numbers.

Asked by Rahul Agarwal

MDF supply side, imports, pricing, and margin outlook Direct
Imports are much lower and exports are much lower... there is still some oversupply in the market... capacity utilization has begun to improve... our focus is going to be on market share gains... 15% guidance is that right now, our focus is going to be on market share gains.

Provides insight into the competitive landscape of MDF, the impact of imports/exports, and management's strategy to achieve 15% EBITDA through market share gains despite oversupply.

Asked by Rahul Agarwal

Inventory total as of June end Evasive
Vinay will take it up. Sorry, just give me a second. I think our team will get back to you on that. The CFO will get back to you with details on the same. I don't have it in front of me right now.

Inventory levels are a key indicator of working capital management and demand. The inability to provide this immediately suggests it might be a sensitive point or not readily available.

Asked by Rahul Agarwal

Timber pricing trends for MDF/Plywood Direct
In MDF and particle board, the timber prices seem to be rebounding slightly... I do hope that the peak of timber prices are behind us... As far as plywood is concerned, I think timber prices are pretty much at similar levels.

Timber is a major raw material. Understanding price trends is crucial for margin outlook, especially for MDF/Particle Board which could benefit from lower costs.

Asked by Rahul Agarwal

Ad spend percentage for Plywood division in Q1 Partial
So this quarter, we were in IPL. So that is a massive spend which happened in Q1... It was 5.7%.

Explains the marginal decline in stand-alone EBITDA margin despite gross margin improvement, attributing it to higher promotional spend, which is a temporary Q1 effect.

Asked by Sneha Talreja

Particle Board scale-up, revenue, and margin outlook for the new plant Direct
The product has started selling the market, the response from OEMs and the market in general has been superb... from next quarter onwards in H2, you will see a huge spike as far as particle board volumes are concerned... total turnover potential will be in excess of INR500 crores... EBITDA margin that steady state will look at 15%... from next year, we will be at double-digit EBITDA plus.

Provides detailed expectations for the newly commissioned Particle Board plant, including volume ramp-up, revenue potential, and long-term margin targets, which is a significant growth driver.

Asked by Sneha Talreja

Impact of real estate cycle on plywood, MDF, and Particle Board Direct
in plywood division we used to guide ourselves basis the real estate cycle... we need to stop looking at cycles. And we need to start concentrating more towards capturing the unorganized to organized... on the MDF and Particle Board, the industry is still very nascent... we are actually immune to real estate cycles.

Management clarifies a strategic shift in plywood to focus on organized market capture rather than being solely tied to real estate cycles, and states MDF/Particle Board are immune due to nascent industry stage.

Asked by Nandita

Long-term debt repayment plan Direct
long-term debt within the course of the next 2 years, I think we'll be able to repay the majority of the long-term debt... we will be coming close to 0 long-term debt on the books.

Provides a clear capital allocation strategy regarding debt reduction, indicating strong cash flow generation and a commitment to a debt-free balance sheet in the medium term.

Asked by Rahul Agarwal

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview and Margin Dynamics

Century Plyboards reported a robust Q1 FY26, with consolidated revenue growing 16.3% year-on-year and stand-alone revenue increasing by 6.8%. Consolidated EBITDA, excluding forex impact, significantly improved to 12.5% from 11.2% in Q1 FY25, largely due to the positive contribution from the Badvel plant. However, stand-alone EBITDA saw a marginal decline to 12.7% from 13.5% in Q1 FY25, primarily attributed to higher advertising and promotional spend during the quarter, including IPL campaigns.

Segmental Performance Highlights

The Plywood segment continues to be a strong performer, leading the portfolio with 15.3% year-over-year top-line growth and an impressive 13.8% EBITDA margin. The MDF business also demonstrated strong growth, with a 23.7% year-on-year consolidated revenue increase and a 14.3% EBITDA margin, positioning it among the highest in the industry. The Laminates segment showed early signs of a turnaround, recording 12.8% year-over-year and 1.9% quarter-on-quarter growth in consolidated revenue, achieving a 5.9% EBITDA margin.

Particle Board Business and Capacity Expansion

The Particle Board segment is in a recovery phase, experiencing a year-on-year revenue decline but showing sequential improvement. Margins remain under pressure due to elevated timber costs and pricing challenges. However, the company commenced commercial production at its new Particle Board plant in Tamil Nadu towards the end of Q1. This new facility, offering a cost advantage and superior product quality, is expected to drive a 'huge spike' in volumes from H2 FY26 and achieve a steady-state EBITDA margin of 15%.

Working Capital and Debt Management

The company successfully improved its working capital cycle this quarter, bringing it down from 76 days to 71 days, primarily through better management of raw material inventory. Century Plyboards aims for aggressive debt reduction, planning to repay the majority of its long-term debt within the next two years, with the goal of achieving a near-zero long-term debt position on its books, supported by strong cash flow generation.

Strategic Initiatives and Product Innovation

Century Plyboards is committed to a 3-year digitization plan, integrating AI across various departments and training its workforce. The company is also focused on new product development and launches, including Cenboil Plus (a high-density, waterproof MDF product), an improved Particle Board product, PVC louvers, and guaranteed-quality acrylic laminates. These initiatives are aimed at enhancing product quality, cost efficiency, and market penetration.

Market Outlook and Raw Material Trends

The plywood industry is expected to witness steady growth driven by urbanization, rising disposable incomes, and a shift towards branded products. Management is strategically shifting its focus from being solely tied to real estate cycles to capturing market share from the unorganized sector. The MDF and Particle Board industries are considered nascent and immune to real estate cycles, with robust demand anticipated. Timber prices for MDF and Particle Board are showing slight rebounds, while plywood timber prices remain stable, with hopes that peak prices are behind.

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