Century Plyboards (India) Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Century Plyboards delivered a strong Q3 FY26, with robust growth across all key business segments and significant margin expansion. The company's focus on operational efficiency and capacity utilization, coupled with strategic expansions, drove this performance. Management expressed confidence in sustaining growth momentum, with several capacity additions planned for the coming quarters across plywood and MDF.

Highlights

  • Consolidated Revenue reached INR 1,350 crores, marking an 18.4% YoY growth.

  • Consolidated EBITDA (excluding forex) stood at INR 170.5 crores, with margin improving to 12.6% from 10.7% YoY.

  • Plywood segment revenue grew 14.9% YoY to INR 710 crores, achieving a 15.1% EBITDA margin.

  • MDF segment revenue increased 19.1% YoY, with EBITDA margin at 12.1%, up from 10.7% last year.

  • Laminate segment revenue was INR 183 crores, growing 9.6% YoY, with a 7.7% EBITDA margin.

  • Particleboard segment recorded its highest-ever quarterly sales of INR 65 crores, reaching EBITDA breakeven.

  • Significant plywood capacity expansions are underway in Hoshiarpur and Chennai, expected to be operational by Q3 FY27.

  • An additional 70,000 cubic meters of MDF capacity is expected to be unlocked by Q1 FY27.

Key financials

  1. Consolidated Revenue ₹1,350 Cr +18.4%YoY
  2. Consolidated EBITDA (ex-forex) ₹170.5 Cr
  3. Consolidated EBITDA Margin (ex-forex) 12.6% +1.9%YoY
  4. 9-month FY26 Revenue Growth — +17.3%YoY

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

  • Plywood
    ₹710 Cr Revenue15.1% EBITDA Margin
  • Laminate
    ₹183 Cr Revenue7.7% EBITDA Margin
  • MDF
    — Revenue Growth12.1% EBITDA Margin
  • Particleboard
    ₹65 Cr Sales₹0 Cr EBITDA

Capital allocation

medium confidence
  • Capex ₹400 Cr very strong internal accruals
    • Plywood capacity expansion in Hoshiarpur (initial) 30,000 CBM
    • Plywood capacity expansion in Hoshiarpur (eventual) 60,000 CBM
    • Plywood capacity expansion in Chennai (total) 1,50,000 CBM
    • Plywood capacity expansion in Uttar Pradesh (eventual) 90,000 CBM
    • MDF capacity unlock (additional) 70,000 cubic meters
    • MDF plant in Uttar Pradesh ₹1,100 Cr
    • MDF plant in Uttar Pradesh (capacity) 3,00,000 cubic meters
    Funding out, I think it is a dynamic scenario. Currently, we have very strong internal accruals. So going forward, as and when we finalize the funding plan, we shall get back to you. - Keshav Bhajanka

Guidance & targets

Revenue

  • FY27 Revenue Outlook Revenue · FY27 · Low confidence similar, if not better than FY26
    I think, Rahul, we haven't published any numbers on FY '27 yet. But when you look at FY '26, we've had a very strong growth, and it has been largely in line with guidance. So, I think FY '27 is likely to look similar, if not better.

    — Sanjay Agarwal

  • Long-term Revenue Ambition Revenue · by FY '31 · High confidence INR 12,000 crores
    As you know, our long-term growth ambition is INR12,000 crores by FY '31. So that includes an annualised CAGR of 18% plus.

    — Keshav Bhajanka

Volume

  • MDF Growth Volume · current year · High confidence 25%-plus growth
    for the current year, we have guided for 25%-plus growth. And I think that we will be able to achieve that.

    — Keshav Bhajanka

  • Plywood Growth Volume · next year · High confidence 5% to 7% increase
    We have a projection, in the next year, 5% to 7% increase will be there in plywood -- growth will be there.

    — Sanjay Agarwal

  • Laminates Growth Volume · for the year · High confidence 15% plus growth
    in laminates, we are confident of 15% plus growth for the year.

    — Keshav Bhajanka

  • Laminates Growth Volume · next financial year · High confidence 20% plus growth
    A combination of both, we are looking at 20% plus growth for the next financial year.

    — Keshav Bhajanka

Margin

  • MDF EBITDA Margin Margin · current year · High confidence 15%-plus
    with this 25%-plus growth and a 15%-plus EBITDA, I think we are in a reasonably healthy position.

    — Keshav Bhajanka

  • Laminates Margins Margin · next year · Medium confidence Double-digit margins
    Double-digit margins next year for sure.

    — Keshav Bhajanka

  • Normalized MDF EBITDA Margin · 3- to 5-year horizon · Medium confidence closer to 20%
    I would say that a normalized return on MDF would be closer to 20% EBITDA.

    — Keshav Bhajanka

  • Particleboard Margin Margin · by Q4 of next year · Low confidence steady state margins
    for particleboard, I think maybe by Q4 of next year, we should be able to target steady state margins.

    — Keshav Bhajanka

What to watch in Q4 FY26

MDF Margin Improvement

Next quarter (Q4 FY26)
Current 12.1% (Q3 FY26)
Target 14-15% (FY26 guidance)

Why it matters

MDF is a key growth segment, and achieving the guided margin is crucial for overall profitability and investor confidence.

So, I think we are looking at higher margin in the current quarter because of two things. Firstly, like I mentioned, there was a flooding situation in Punjab in last quarter that led to slightly higher prices for North plant, which is now eased out. Secondly, we will be looking at higher capacity utilization in the current quarter. Q4 is traditionally always better than Q3 as far as demand is concerned. So, I think that these are going to help us look at slightly higher margins for the quarter.

Risks & concerns

  • MDF Pricing Pressure from Capacity Additions

    medium

    Analyst expressed concern about a potential 'cut-throat price war' in the MDF segment due to significant capacity additions, comparing it to the telecom industry's past. Management believes prices have bottomed and long-term growth is positive.

    Analyst downplayed

  • MDF Margin Volatility

    medium

    Analyst noted that Q3 MDF margins were lower than the company's guidance. Management attributed this to temporary factors like the Punjab flood situation impacting timber costs and seasonality, expecting improvement in Q4.

    Analyst acknowledged

  • Impact of Imports on MDF Market

    low

    Analyst questioned the impact of potential government policy changes that could lead to increased imports. Management stated imports historically constituted a small portion (7-8%) of total sales and BIS regulations would ensure product quality.

    Analyst downplayed

Q&A highlights

5 direct, 1 evasive
MDF Pricing and Competition Direct
Currently, the pricing that is there, if you look at imports even earlier, never constituted more than 7%, 8% of the total sales of MDF in the country. And having said that, the prices, like you rightly said, because of the intense competition that has taken place because of unprecedented capacity addition over the course of the last 2 years, which is unlikely to be repeated in the foreseeable future, prices have actually bottomed out.

Analyst raised concerns about a potential price war in MDF due to capacity additions, and management clarified that prices have bottomed and imports are not a major threat.

Asked by Balaji Vaidyanath

MDF Capacity Expansion Location Direct
Yes.

Confirmed that the announced incremental MDF capacity of 330,000 cubic meters is entirely planned for Uttar Pradesh.

Asked by Balaji Vaidyanath

MDF Returns on Capital Employed Partial
for the current year, we are at a 24% growth trajectory. And going forward, we believe that MDF still has a lot of room to grow. For the current year, we have guided for 25%-plus growth. And I think that we will be able to achieve that.

Analyst questioned the rationale for large MDF capacity expansion given current low returns on capital, prompting management to reiterate strong growth and margin targets.

Asked by Balaji Vaidyanath

MDF Margin Triggers Direct
Firstly, like I mentioned, there was a flooding situation in Punjab in last quarter that led to slightly higher prices for North plant, which is now eased out. Secondly, we will be looking at higher capacity utilization in the current quarter. Q4 is traditionally always better than Q3 as far as demand is concerned. So, I think that these are going to help us look at slightly higher margins for the quarter. Lastly, chemical prices have also stabilized, and I think that is also going to aid in the pursuit of higher margins.

Analyst sought specific reasons for achieving the 14-15% MDF margin guidance, given Q3's 12.1%, and management provided clear operational and cost-related triggers.

Asked by Rehan Saiyyed

CFS Segment Volatility and Margins Evasive
Yes. So, CFS actually, we are not updated very much very frankly, I should be, but really, I'm not updated right now. So, we will call you. Our Investor Relations, Vinay, will call you and update you.

Analyst inquired about the drop in CFS EBITDA margin despite high revenue growth, but management was not prepared to answer and promised a follow-up.

Asked by Rehan Saiyyed

Plywood Capacity Expansion Details Direct
So, currently, we have done 60,000 in Hoshiarpur, but we will start operations with 30,000 and minimum is 32,000, and then eventually increase it to 60,000. We'll put machines worth 60,000, but we will gradually increase it. And in terms of Chennai, currently, we are at -- it will be almost 1 lakh, if I'm not wrong, like in CBM, I usually talk in NA. So in CBM, it should be 1 lakh. It's a little higher than the UP plant.

Analyst sought clarification on the specific CBM capacities and timelines for the Hoshiarpur and Chennai plywood expansions.

Asked by Keshav Lahoti

Plywood vs. MDF Capex Intensity Direct
You see in plywood, whenever we come up with a capacity, we create a capacity for a larger size. Currently, all the brownfield expansions that you have been seeing, which are nominal cost there because the infrastructure has been created. What we need to add on is debottlenecking equipment.

Analyst questioned why plywood capex intensity per CBM appeared higher than MDF, leading to management explaining the difference between greenfield (plywood) and brownfield (MDF) expansion costs.

Asked by Bhavin Rupani

FY26 Capex and Future Funding Partial
Rahul, it depends on when we get the land allotment. Once we have the same, we will be taking a more detailed view of how this expansion will play out and we will share details. Currently, till we don't have the land in hand it's very difficult to give you any sort of a pickup.

Analyst asked for clarification on FY26 capex and future capex spending, particularly for the UP plant, but management deferred specific numbers pending land acquisition.

Asked by Rahul Agarwal

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Detailed narrative

Strong Q3 FY26 Financial Performance

Century Plyboards reported a robust Q3 FY26, with consolidated revenue reaching INR 1,350 crores, marking an 18.4% year-on-year growth. The nine-month FY26 revenue also demonstrated strong momentum, growing 17.3% year-on-year. Consolidated EBITDA, excluding forex impact, stood at INR 170.5 crores, and the EBITDA margin improved significantly to 12.6% from 10.7% in the corresponding quarter last year, driven by higher volumes and cost optimization initiatives.

Segmental Growth Across Key Businesses

The Plywood segment achieved INR 710 crores in revenue, growing 14.9% year-on-year, with an EBITDA margin of 15.1%, supported by healthy volume growth and expanded distribution. The MDF business continued its strong trajectory, with revenue increasing 19.1% year-on-year and an improved EBITDA margin of 12.1%, up from 10.7% in the previous year. The Laminates division reported INR 183 crores in revenue, a 9.6% year-on-year increase, and a 7.7% EBITDA margin. The Particleboard segment recorded its highest-ever quarterly sales of INR 65 crores, achieving EBITDA breakeven.

Strategic Capacity Expansion Plans

The company is actively pursuing significant capacity expansions across its plywood and MDF segments. Two major plywood expansions are planned for Hoshiarpur and Chennai, expected to be operational by Q3 FY27, adding 30,000 CBM (eventually 60,000 CBM) and 150,000 CBM respectively. In MDF, an additional 70,000 cubic meters of capacity will be unlocked by Q1 FY27, and a new plant in Uttar Pradesh with over 3 lakh cubic meters capacity is planned over 2.5 years, involving an estimated capex of INR 1,100 crores.

MDF and Laminates Margin Outlook

Management anticipates an improvement in MDF margins from the current 12.1% (Q3 FY26) to the guided 14-15% range for FY26. This improvement is expected due to easing raw material costs (post-Punjab floods), higher capacity utilization in Q4, and stabilized chemical prices. For the Laminates business, the company aims for double-digit margins next year, driven by better cost absorption and an improved product mix, alongside a target of 20% plus growth for the next financial year.

Long-Term Vision and Funding Strategy

Century Plyboards maintains a long-term growth ambition of INR 12,000 crores by FY31, implying an annualized CAGR of over 18%. The company emphasizes its strong brand equity, diversified product portfolio, and expanding distribution network as key enablers. Funding for the significant capex plans, particularly for the Uttar Pradesh MDF plant, is expected to be primarily through strong internal accruals, with detailed funding plans to be finalized upon land acquisition.

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