Century Plyboards (India) Limited — Q4 FY26 earnings call

Call held 27 May 2026

Management summary

Century Plyboards reported a landmark FY26 with record Q4 revenue and significant margin expansion across all segments, driven by healthy demand and improved operational efficiencies. The company is aggressively expanding capacity in Plywood and MDF, with new plants and brownfield expansions underway. Despite strong performance, management withheld FY27 guidance citing global uncertainties, while addressing concerns about raw material inflation and margin pressures through calibrated price increases.

Highlights

  • Highest ever quarterly revenue of ₹1,492 crores in Q4 FY26, reflecting 24.5% YoY growth.

  • Consolidated EBITDA margin (excluding forex losses) improved to 13.6% in Q4 FY26, driven by better operating leverage and capacity utilization.

  • Full year FY26 top line grew 19.2%, with EBITDA margin improving significantly to 13% from 11.1% in FY25.

  • Laminate segment showed a strong turnaround, with FY26 EBITDA margin improving to 8.5% from 5.2% in FY25.

  • Century Ports, a new strategic diversification, commenced commercial operations in Q4 FY26 and is expected to be cash positive in Q1 FY27.

Concerns

  • Management refrained from providing FY27 guidance due to fluid geopolitical situations and market uncertainties.

  • MDF segment experienced a ~1% QoQ margin erosion in Q4 FY26 due to production disruptions and one-off ATL spend.

  • Uncertainty remains regarding the stickiness of the 15% price increase taken by the industry in MDF due to chemical/supply chain disruptions.

Key financials

  1. Revenue ₹1,492 Cr +24.5%YoY
  2. EBITDA Margin (ex-forex) 13.6%
  3. PAT ₹268 Cr +44%YoY
  4. ROE 15.2%
  5. ROCE 14.6%

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

SegmentQ4 Revenue GrowthFY26 Revenue GrowthFY26 EBITDA Margin
Plywood17.9%15.6%15.2%
Laminate16.3%13.9%8.5%
MDF31%25.5%12.7%
Particle Board108.3%38.2%1.2%

Capital allocation

high confidence
  • Capex ₹2,000 Cr Internal cash flows predominantly to strengthen balance sheet
    • New Plywood plant in UP
    • Land acquisition in Orissa for MDF or Particle Board plant
    • Hoshiarpur Plywood plant
    • Brownfield expansion in existing Plywood plants (Kandla, Chennai, Guwahati)
    • MDF South plant brownfield expansion
    For the full year FY '26, the company achieved top line growth of 19.2%, while EBITDA margin, excluding forex loss improved significantly to 13% from 11.1% in FY '25. In absolute figures, EBITDA, excluding forex loss has increased from INR502 crores to INR702 crores. ... So I think currently, there's no frozen capex for MDF or Particle Board, which are large substantial capexes. We are going to be using our internal cash flows predominantly to strengthen our balance sheet.
  • Debt 2.5× EBITDA
    Right now, we are at about 2.5 if you look at debt-to-EBITDA gross levels. I think we should be reasonably assured? ... But long-term debt, I don't think we'll exceed 1:1 EBITDA going forward.

Guidance & targets

Capacity

  • Plywood Capacity Increase Capacity · This year (FY27) · High confidence 30%
    Yes. So actually, in Q4, we had a capacity utilization of about 99%. We are increasing our capacity by about 30% within this year.

    — Nikita Bansal

  • Hoshiarpur Plywood Plant Commissioning Capacity · FY27 · High confidence October this year
    And another, the Hoshiarpur plant is supposed to come up in October this year.

    — Nikita Bansal

  • Chennai Plywood Capacity Increase Capacity · July this year (FY27) · High confidence 25,000-30,000 CBM
    Chennai is doubling in July this year. So that is the 20% expansion that I was talking, not really doubling because it's already taken out a lot of meat within its existing plant. So about 40,000 NA, which is, I don't know, maybe 30,000 or 25,000 CBM will increase in Chennai by July.

    — Nikita Bansal

  • MDF South Plant Additional Capacity Capacity · End of Q1 FY27 · High confidence 60,000-70,000 cubic meters/year
    In Q1 of this financial year, we are doing a brownfield expansion in our South plant that will unlock about 60,000, 70,000 cubic meters per year of additional capacity. So that is ongoing currently and will get completed by the end of the quarter.

    — Sumant Wattas

Profitability

  • Century Ports Cash Flow Profitability · Q1 FY27 · High confidence Cash Positive
    We will be cash positive in Q1 FY '27 from the Port business.

    — Sanjay Agarwal

  • MDF Sustainable EBITDA Margin Profitability · Next year (FY27) · Medium confidence High-teens
    our strong belief is that this is a high-teens EBITDA business in steady state. And there are 2, 3 reasons for it. One, a lot of operational improvement on the plant side that we do in regular course is likely to kick in again next year as well.

    — Sumant Wattas

Volume Growth

  • Plywood Revenue Growth Volume Growth · Next year (FY27) · Medium confidence 10-12%
    And we are taking a very muted growth of 10% to 12% and a capacity utilization of 80%, basis that we are planning our expansion.

    — Nikita Bansal

Market Share

  • Laminate Market Outgrowth Market Share · Ongoing · Medium confidence 3-4%
    we may continue to outgrow the market by 3 to 4 percentages.

    — Vishu Goel

What to watch in Q1 FY27

Century Ports Cash Flow Status

Q1 FY27
Current Commenced commercial operation in Q4 FY26
Target Cash positive

Why it matters

Verifies the successful financial contribution of the new strategic diversification into port logistics.

We will be cash positive in Q1 FY '27 from the Port business.

Risks & concerns

  • Geopolitical conflicts and supply chain disruptions

    high

    Ongoing geopolitical conflicts and supply chain disruptions are causing inflationary pressure on chemicals and resin-related input costs, leading to uncertainty in price stickiness and future guidance.

    Management acknowledged

  • Market volatility for price increases

    medium

    While the industry has taken a 15% price increase in MDF, there is uncertainty if it will stick due to some peers rolling back, making the situation 'in flux'.

    Management acknowledged

  • Channel inventory buildup

    low

    Analyst noted channel pushing in March due to expected price hikes, potentially leading to slower April sales, though management stated April was not slow for Century Ply.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
FY27 Guidance Evasive
Actually, the present situation is so, I think, fluid, it will not be right on our part to give you anything right now, but maybe by next time, we will be in a better position to till now whatever we have projected, we have been able to mostly achieve.

Management explicitly declined to provide FY27 guidance, citing global uncertainties (war, uranium), which signals caution despite strong FY26 performance.

Asked by Praveen Sahay

MDF Margin Pressure and Outlook Direct
So if you compare our Q4 versus Q3, there has been a margin erosion of about 1%, a marginal margin erosion. This is on account of 2 factors. One, some production-related disruptions linked to the chemical availability and prices. And secondly, some one-off spend. ... our strong belief is that this is a high-teens EBITDA business in steady state.

Analyst questioned Q4 MDF margin decline, and management attributed it to specific factors while maintaining a positive outlook for high-teens sustainable margins in the future.

Asked by Utkarsh Nopany

Plywood Outsourcing Strategy Direct
So the thing is with respect to outsource, I think I've mentioned it in the last call as well and our meets that we want to actually make it a complete 100% in-house production. We are hoping that by the time there is an internal expansion next year, April, and Hoshiarpur.

Management clarified its strategy to move towards 100% in-house plywood production, particularly for Sainik MR, to improve quality and efficiency, indicating future capacity utilization plans.

Asked by Sneha

MDF Capacity Expansion Beyond Debottlenecking Partial
Look, like Keshav mentioned a couple of questions back, obviously, debottlenecking is one area which will give us 60,000, 70,000 cubic meters more of capacity this year, and we would like to obviously try to sell it off as quickly as possible. ... In parallel, move towards value-added is certainly very high on the agenda because that also gives us EBITDA uplift. In terms of capacity addition beyond that, nothing is firmed up and nothing is announce able as of now.

Analyst probed future MDF capacity plans beyond immediate debottlenecking, revealing that while management is bullish, specific plans are not yet firmed up, highlighting a potential future growth driver.

Asked by Sankarshan Mehra

Raw Material Price Hikes and Pass-on Direct
It's not that complicated. It's very simple. You see there are very different factors in costing. We have a very efficient costing management system. And very fast, we get the calculations that what are our costs going to be in, say, next 1 month's time also. So accordingly, we take the price increase. ... No, it will always be higher, right? The raw material increase will be higher because of the ratio of the raw material to the pricing is -- it's not 100%, right? So obviously, the raw material price would be higher, obviously, but we pass on the exact, right? We do not let our EBITDA get hit. That's usually how we work as a company.

Management explained its strategy for passing on raw material cost increases, emphasizing an efficient costing system and a commitment to maintaining EBITDA margins, which is crucial given inflationary pressures.

Asked by Amit Purohit

Century Ports Financial Impact Direct
For saving for Century Ply, no, there is no cost saving in this. There is -- I mean, it makes life easier for many, many importers and exporters, so to us also, but there is no cost saving for Century Ply in there. ... We always maintain each thing as a separate profit center. So Century Ports will continue to have its own profit center and give no benefit to Century Ply as of now.

Management clarified that Century Ports is a separate profit center and will not directly provide cost savings to Century Ply, but rather offers strategic diversification and ease for importers/exporters.

Asked by Bhavin Rupani

Laminate Segment Turnaround Direct
So I think there are 2 parts to the question, okay? In the last, if you were to look at the preceding 8 quarters, which is FY '24-'25 and '23-'24, okay, we had seen a certain amount of stagnancy as far as the Laminate business is concerned. ... And if you were to look at this year, we have started seeing some green shoots as far as the financial year '25-'26 is concerned. So on a quarter-on-quarter basis, we have seen an uptick as far as the overall topline as well as the improvement on the bottom line is concerned, which essentially has come through the work, which we have done both in the domestic market, including working on some price points, trying to sharpen our go-to-market strategy and making some corrective changes there, including changes in the leadership team.

Management detailed the reasons for past stagnancy in the Laminate segment and the corrective actions taken, which are now yielding 'green shoots' and improved performance in FY26.

Asked by Anu Parakh

Debt-to-EBITDA and Forex Exposure Direct
Right now, we are at about 2.5 if you look at debt-to-EBITDA gross levels. I think we should be reasonably assured? ... But long-term debt, I don't think we'll exceed 1:1 EBITDA going forward. ... Rahul, our total forex is within INR600 crores. Over the course of the past 2 decades, we have benefited substantially because of a natural interest hedge, as you are aware. One year, yes, there's been a start loss. This is predominantly due to the fact that currencies appreciated beyond what anyone could have imagined. Having said that, I think our total forex expenditure to our total forex exposure is INR600 crores.

Management provided comfort on debt levels, stating long-term debt will not exceed 1:1 EBITDA, and clarified forex exposure is INR 600 crores, with mark-to-market losses due to currency appreciation but no plans to increase exposure.

Asked by Rahul Agarwal

2 min read 6 chapters

Detailed narrative

Strong Q4 and Full Year FY26 Performance

Century Plyboards reported its highest ever quarterly revenue of ₹1,492 crores in Q4 FY26, marking a 24.5% YoY and 10.5% QoQ growth. For the full year FY26, the company achieved a top-line growth of 19.2%. Consolidated EBITDA margin (excluding forex losses) improved to 13.6% in Q4 FY26 and 13% for the full year, up from 11.1% in FY25. Profit after tax increased by 44% to ₹268 crores, reflecting significant improvements in profitability and operational efficiency.

Segmental Growth and Margin Expansion

The Plywood segment recorded 17.9% YoY revenue growth in Q4 FY26 with a 16.1% EBITDA margin. The Laminate segment demonstrated a strong turnaround, with Q4 revenue growing 16.3% YoY and FY26 EBITDA margin improving to 8.5% from 5.2% in FY25. MDF continued its strong trajectory with 31% YoY revenue growth in Q4 and a 12.7% EBITDA margin for FY26. Particle Board saw robust growth, with Q4 revenue up 108.3% YoY, though its FY26 EBITDA margin remained lower at 1.2%.

Aggressive Capacity Expansion Plans

The company is undertaking significant capacity expansions across segments. Plywood capacity is set to increase by 30% this year, including the commissioning of the Hoshiarpur plant by October and a 25,000-30,000 CBM increase at the Chennai plant by July. In MDF, a brownfield expansion at the South plant will add 60,000-70,000 cubic meters per year by the end of Q1 FY27. Total capex for UP and Orissa projects is estimated at ₹2,000 crores over 4-5 years, with land acquisition in progress.

Strategic Diversification into Ports

Century Ports, a wholly-owned subsidiary, commenced commercial operations at Khidderpore Docks, Kolkata, during Q4 FY26. This marks a strategic diversification into port logistics and infrastructure aimed at enhancing supply chain efficiencies. Management expects the Port business to become cash positive in Q1 FY27, operating as a separate profit center without directly benefiting Century Plyboards' cost structure.

Raw Material Inflation and Price Management

The company faced inflationary pressures on chemicals and resin-related input costs due to geopolitical conflicts and supply chain disruptions. In response, the industry, including Century Plyboards, implemented a 15% price increase in MDF and a 7% price increase in Plywood in April. Management stated that these increases were necessary to cover rising costs and that the company's efficient costing system allows it to pass on costs to maintain EBITDA margins, though the stickiness of these increases is being monitored.

Cautious Outlook and Balance Sheet Discipline

Despite strong FY26 results, management refrained from providing specific FY27 guidance, citing the fluid geopolitical situation and market uncertainties. The company emphasized its commitment to balance sheet discipline, aiming for sustained growth rather than exponential, and expects long-term debt not to exceed 1:1 EBITDA. Forex exposure is managed at ₹600 crores, with mark-to-market losses in Q4 attributed to currency appreciation.

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