Century Plyboards (India) Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Century Plyboards delivered a strong Q2 FY26, achieving record revenues in Plywood, MDF, and Laminates, driven by healthy demand and operational efficiencies. Profitability improved across segments, and the new Particle Board plant commenced operations. The company also demonstrated significant improvements in working capital and cash flow, positioning it well for sustained growth.

Highlights

  • Consolidated Revenue reached INR 1,386 crores, marking a 17.1% YoY growth.

  • Consolidated EBITDA (ex ForEx) stood at INR 181.7 crores, with a margin of 13.1%, up from 10.3% in Q2 FY24.

  • Plywood segment achieved its highest-ever quarterly revenue of INR 760 crores, growing 16% YoY, with an EBITDA margin of 14.2%.

  • MDF segment reported its highest-ever quarterly revenue of INR 343 crores, a 27.9% YoY increase, and an EBITDA margin of 13.6%.

  • Laminate segment revenue grew 16.6% YoY to INR 188 crores, with an EBITDA margin of 9.5%.

  • The new Particle Board plant commenced commercial production, contributing INR 54-55 crores in Q2 sales.

  • H1 Cash Flow from Operations improved significantly to INR 269.4 crores, compared to negative INR 2.73 crores in H1 FY24-25.

  • Consolidated working capital cycle reduced to 70 days from 74 days, reflecting improved efficiency.

Key financials

  1. Consolidated Revenue ₹1,386 Cr +17.1%YoY
  2. Consolidated EBITDA (ex ForEx) ₹181.7 Cr
  3. Consolidated EBITDA Margin (ex ForEx) 13.1%

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

SegmentRevenueYoY GrowthSequential GrowthEBITDA Margin
Plywood₹760 Cr16%17.5%14.2%
Laminate₹188 Cr16.6%8.4%9.5%
MDF₹343 Cr27.9%32.4%13.6%
Particle Board————

Capital allocation

medium confidence
  • Capex Capex disclosed largely through internal accruals
    • Plywood factory in Hoshiarpur
    • MDF line extension at South plant (25% capacity increase)
    Cash flows from operations have improved to INR269.4 crores in H1 against negative INR2.73 crores in FY '24-'25, enabling us to fund CapEx requirement and largely through internal accruals.
  • Liquidity Liquidity disclosed Cash flows from operations improved enabling CapEx funding largely through internal accruals.
    Cash flows from operations have improved to INR269.4 crores in H1 against negative INR2.73 crores in FY '24-'25, enabling us to fund CapEx requirement and largely through internal accruals.

Guidance & targets

Capacity

  • MDF South plant capacity increase Capacity · H1 next year (FY27) · High confidence 25%
    This is Sumant here. We are planning for an extension line extension on our South plant, which will increase capacity of the South plant by about 25%. We will not do it in H2 of this year. It will most likely happen in H1 of next year.

    — Sumant Wattas

  • MDF total capacity Capacity · next year (FY27) · High confidence 6 lakh cubic meters

    Previously 5 lakh - 5.25 lakh cubic meters → 6 lakh cubic meters

    In H1, like I mentioned, we'll take a line extension, which will take our capacity from the current 5 lakh -- 5.25 lakh cubic meters to about 6 lakh cubic meters next year.

    — Sanjay Agarwal

Industry Growth

  • MDF industry growth Industry Growth · High confidence 15-20%
    The industry will grow by 15%, 20%, and that's our outlook as well.

    — Sanjay Agarwal

Growth

  • Particle Board sales growth Growth · for the year · High confidence 40%
    And hence, we are quite confident of the 40% guidance that we've given.

    — Management

Margin

  • MDF EBITDA margin Margin · Medium confidence high-teens
    Look, it's hard to put the timelines to when we take those margin levels, but it is in a steady state with value-added maxed out and all temporary RM pressures going away, I think high-teens is a possibility.

    — Management

Utilization

  • Particle Board utilization Utilization · H2 · High confidence 55-60%

    Previously 35% → 55-60%

    For particle boards, you know, currently we are at about 35% utilization. We hope to go up to about 55% to 60% in H2.

    — Sumant Wattas

  • Laminate Badvel plant utilization increase Utilization · High confidence 10-15 percentage points

    From almost about 55% today

    So as we move forward, we are looking at the capacity utilization for both Joka as well Badvel to go up about 10 to 15 percentage points for Badvel specifically.

    — Vishu Goel

  • Overall utilization (most cases) Utilization · FY26, FY27 · Medium confidence 90% plus
    For '26, '27. I think the way we look at it, it should go above 100% utilization, actually, I'm joking. But yes, we are — whatever we are doing, we will be able to achieve, I think, 90% plus in most cases.

    — Sanjay Agarwal

What to watch in Q3 FY26

MDF South Plant Capacity Expansion

next quarter / H1 FY27
Current Planned for H1 FY27
Target Progress towards 25% capacity increase

Why it matters

This expansion is a key driver for future MDF volume growth and overall capacity.

We are planning for an extension line extension on our South plant, which will increase capacity of the South plant by about 25%. We will not do it in H2 of this year. It will most likely happen in H1 of next year.

Risks & concerns

  • Particle Board EBITDA Pressure during Ramp-up

    medium

    EBITDA for the new Particle Board business remains under pressure due to higher fixed costs during the ramp-up phase.

    Management acknowledged

  • Temporary Raw Material Cost Pressure

    low

    Pressure on wood (North) due to supply shortage/rains and on chemicals due to global commodity/freight movements, but expected to stabilize in a month or so.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
MDF Capacity Expansion Timeline Direct
We are planning for an extension line extension on our South plant, which will increase capacity of the South plant by about 25%. We will not do it in H2 of this year. It will most likely happen in H1 of next year.

Clarifies the timeline for MDF capacity expansion, which is a key growth driver.

Asked by Keshav Lahoti

MDF Future Capacity Constraints Partial
So that's a bit of capacity relief as of now, we are bullish on the industry. The industry will grow by 15%, 20%, and that's our outlook as well. With the current capacity, we'll continue to optimize for product mix, value added, so on and so forth. And internally, we are deliberately on how to think about future capacity expansion, but nothing concrete at this point in time.

Highlights management's awareness of potential future capacity constraints given high industry growth and current utilization, but no concrete plans yet.

Asked by Keshav Lahoti

Laminate Realization Improvement Sustainability Direct
So it should be sustainable because as we move forward, we are now proactively looking at avenues in terms of the entire ecosystem, specifically the influencers, including the architects, some of the premium markets as far as exports are concerned and a certain conscious effort to look at a high premium product mix, both for our international as well as our domestic markets. So we strongly believe that as we move forward, the premiumization on the category is something which will continue.

Provides confidence in the sustainability of improved laminate realizations through strategic focus on premiumization and market engagement.

Asked by Praveen Sahay

Particle Board Growth Confidence Direct
So if you take that into account, Q2 actually has seen expansion and growth as compared to Q1. And hence, we are quite confident of the 40% guidance that we've given. The 40% growth potentially means ending the year at about INR200-odd crores, if I take the trial sales into account because we already at INR54 crores, INR55 crores quarter for Q2.

Reassures analysts about the 40% growth guidance for Particle Board despite H1 revenue decline, by clarifying Q2 sales figures including capitalized trial sales.

Asked by Praveen Sahay

MDF Raw Material Cost Outlook Direct
On chemicals, again, we don't see the cost pressure to sustain. It's a temporary blip. As you are aware, most of our chemicals are basic chemicals linked to global commodity movements and global freight movements, be it natural gas or be it crude. We believe this will also stabilize in a month or so.

Indicates that the recent raw material cost pressures are temporary and expected to stabilize soon, which is positive for future margins.

Asked by Sneha Talreja

Particle Board Market Response and Quality Direct
The board that have come out has received very good feedback from the market. The board quality, the surface quality, etc., is very, very robust. So we're very hopeful of a good response in the coming quarters and a good scale up.

Highlights the positive market reception and quality of the new Particle Board product, supporting its ramp-up potential.

Asked by Sneha Talreja

MDF Margin Potential Partial
Look, it's hard to put the timelines to when we take those margin levels, but it is in a steady state with value-added maxed out and all temporary RM pressures going away, I think high-teens is a possibility.

Provides an aspirational target for MDF margins (high-teens) under optimal conditions, indicating significant upside potential.

Asked by Hrishikesh

Net Debt Profile Evasive
You see, you have to calculate because I have we have given the guidance of growth and we have given the guidance of EBITDA also. So we do not like to give you a figure that, yes, this is the profit or this is the expected profit, but we have given a guidance on both the things, and it's very easy for you to calculate actually now. Isn't it?

Management avoided providing a specific net debt figure, directing analysts to infer it from other guidance, which could be a point of concern for some investors seeking direct transparency.

Asked by Ritesh Shah

3 min read 6 chapters

Detailed narrative

Robust Q2 FY26 Performance Driven by Key Segments

Century Plyboards reported a strong Q2 FY26, with consolidated revenue reaching INR 1,386 crores, a 17.1% year-on-year increase. This growth was broad-based across all key business segments. The company's consolidated EBITDA (ex ForEx) stood at INR 181.7 crores, translating to an EBITDA margin of 13.1%, a significant improvement from 10.3% in Q2 FY24, primarily due to higher volumes and ongoing cost optimization initiatives.

Segmental Highlights: Plywood, MDF, and Laminates Achieve Record Revenues

The Plywood segment delivered its highest-ever quarterly revenue of INR 760 crores, growing 16% YoY and 17.5% sequentially, supported by healthy volume growth and improved distribution, achieving a 14.2% EBITDA margin. The MDF segment also recorded its highest-ever quarterly revenue at INR 343 crores, up 27.9% YoY and 32.4% sequentially, driven by higher volumes and plant utilization, with an EBITDA margin of 13.6%. The Laminate division continued its positive trajectory, with revenue of INR 188 crores (up 16.6% YoY) and an EBITDA margin of 9.5%, benefiting from a favorable product mix and internal efficiencies.

New Particle Board Plant Commences Operations with Positive Outlook

The company's new Particle Board plant commenced commercial production and sales during the quarter. Q2 sales for this segment, including capitalized trial sales, amounted to INR 54-55 crores. While EBITDA for this business is currently under pressure due to higher fixed costs during the ramp-up phase, management expressed confidence in achieving 40% growth for the year and expects utilization to improve from the current 35% to 55-60% in H2 FY26, citing very good market feedback on product quality.

Enhanced Working Capital Efficiency and Cash Flow Generation

Century Plyboards demonstrated significant improvements in its working capital management. The stand-alone working capital cycle reduced to 63 days from 76 days at the end of FY24, and the consolidated cycle improved to 70 days from 74 days. This efficiency was achieved through tighter inventory and improved payable management. Furthermore, cash flows from operations for H1 FY26 turned positive at INR 269.4 crores, a substantial improvement from a negative INR 2.73 crores in H1 FY24-25, enabling the company to fund its CapEx requirements largely through internal accruals.

Strategic Capacity Expansion and Long-Term Growth Outlook

To support future growth, Century Plyboards plans a 25% capacity increase at its MDF South plant through a line extension, expected in H1 FY27, which will bring total MDF capacity to approximately 6 lakh cubic meters. The company maintains a positive medium-term outlook for the building material and interior solutions industry, driven by rising urbanization, higher disposable income, and a growing consumer preference for branded and premium products. Management expects overall utilization to be 90% plus in most cases for FY26/FY27.

Focus on Premiumization and Cost Optimization to Drive Margins

The improvement in laminate segment's EBITDA margin to 9.5% was attributed to a 'broad-based strategy change' focusing on a premium product mix in both domestic and export markets, which management believes is sustainable. Across all segments, the company is implementing ongoing cost optimization programs and leveraging higher volumes to enhance profitability. For MDF, management sees 'a lot more scope' for margin improvement through value-added products and believes 'high-teens is a possibility' for EBITDA margins once temporary raw material pressures subside.

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