Century Plyboards (India) Limited

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.

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%.

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.

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.

The company faced inflationary pressures on chemicals and resin-related input costs due to geopolitical conflicts and supply chain disruption^🌐s. 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.

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.