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    Greenpanel Inds.

    GREENPANEL
    Consumer Durables·10 Nov 2025
    Management Summary

    Greenpanel Industries reported a strong Q2 FY26 with consolidated revenues of ₹389.4 crores, up 17.1% YoY, driven by a 30.5% YoY growth in domestic MDF volumes. The company achieved an operational turnaround and improved cost base, leading to an operating EBITDA of ₹39.7 crores (10.2% margin) excluding one-offs. However, reported profitability was impacted by significant forex losses and new plant-related expenses, resulting in negative PBT and PAT. Net debt reduced by ₹60 crores, and management expects high-teen domestic MDF volume growth and high single-digit to early double-digit operating EBITDA margins for FY26.

    Highlights

    5

    • Consolidated revenues grew to ₹389.4 crores, up 17.1% YoY and 20.7% QoQ.

    • Domestic MDF volumes grew by 30.5% YoY and 26.8% sequentially, indicating strong market traction.

    • Operational and financial parameters showed a turnaround in Q2 FY26 due to strategic changes.

    • Operating cost of production significantly reduced by 5.5% impact on margins due to raw material optimization and improved consumption efficiencies.

    • Net debt reduced by ₹60 crores to ₹173 crores, with actual net reduction of ₹71 crores excluding non-cash FX changes.

    Concerns

    5

    • Plywood volumes were still lower by 5% YoY.

    • Reported EBITDA was lower at ₹27.8 crores (7.1%) due to adverse exchange rate movement (₹12.5 crores this quarter, ₹40 crores H1 cumulative) and incremental interest/depreciation (₹20 crores H1) from the new plant.

    • PBT was negative ₹8.9 crores and PAT was negative ₹6.1 crores.

    • Overall realization was lower by 4% YoY, with a net 2% reduction due to price realignment after accounting for product mix changes.

    • Chemical prices remain elevated, though expected to moderate from end Q3 FY26.

    What Changed2

    vs Q3 FY26

    Guidance items5 → 8 (+3)Risks discussed5 → 4 (-1)

    Key financials

    Single quarter

    07 metrics
    1. 01Consolidated Revenue₹389.4 Cr+17.1%YoY
    2. 02Operating EBITDA (excl. FX/one-offs)₹39.7 Cr
    3. 03Operating EBITDA Margin (excl. FX/one-offs)10.2%
    4. 04Reported EBITDA₹27.8 Cr
    5. 05Reported EBITDA Margin7.1%

    Segment breakdown

    Domestic MDF Volumes
    30.5% Volume Growth26.8% Volume Growth
    Plywood Volumes
    -5% Volume Growth18% Volume Growth
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹40 crores

    Debt

    Net ₹173 crores

    Cost 2.0%

    Liquidity

    Liquidity disclosed

    Comfortable cash net debt position, zero utilization of funded working capital lines, and a healthy balance sheet to support future scale-up.

    Guidance & targets

    7
    CategoryTargetPriority
    Volume
    Domestic MDF Volumes Growth
    high teens
    		High
    Profitability
    Operating EBITDA Margin (excl. FX/one-offs)
    high single-digit to early double-digit average
    		High
    Profitability
    Operating EBITDA Margin (core)
    early double digit
    		High
    Pricing
    MDF Price Hikes
    no price increases coming in
    		High
    Raw Material Costs
    Timber Prices
    stable or slight correction
    		Medium
    Capacity Utilization
    South Plant Utilization
    60%
    		Medium
    Tax Rate
    Effective Tax Rate
    25%
    		High

    South Plant Capacity Utilization

    Q4 FY26
    Current40% in Q2 FY26
    Target60% by Q4 FY26

    Why it matters

    Indicates the ramp-up and efficiency of the new plant, crucial for overall volume growth and profitability.

    In terms of exit quarter, do you think we can reach to about 60% capacity utilization, exit quarter, fourth quarter? Yes, I think that should be possible.

    How to verify

    key_financials.segment_breakdown[name='MDF Capacity Utilization']

    Risks & concerns

    4
    RiskSeverity

    Adverse exchange rate movement on Euro-denominated borrowings

    Resulted in ₹12.5 crores impact this quarter and ₹40 crores cumulative for H1 FY26, mostly unrealized MTM non-cash loss. — Management acknowledged

    medium

    Elevated chemical prices

    Chemical prices remain elevated but are considered a temporary phenomenon and are expected to moderate from end Q3 FY26. — Management downplayed

    low

    Geopolitical disturbances in the Middle East

    Impacted export business, which is already opportunistic and has slimmer margins compared to domestic business. — Management acknowledged

    low

    Incremental interest and depreciation from new plant capitalization

    Contributed ₹20 crores impact in H1 FY26, which is an expected cost associated with new capacity. — Management acknowledged

    low

    Q&A highlights

    8

    “As mentioned in my comments, we revised the guidance to say that our domestic business growth will be in the high teens compared to last year's volumes. Export business, of course, has been quite opportunistic for us, primarily on account of it being a commoditized business and margins, being much slimmer than the domestic business. So as of now, the export business, we have not satisfied the requirements purely due to pricing pressure and due to the geopolitical disturbances in the Middle East, which is our primary market.”

    Clarifies the revised guidance for domestic MDF volume growth and margin, and the opportunistic nature of export business.

    asked by Praveen Sahay

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Overview and Turnaround

    Greenpanel Industries reported a significant turnaround in Q2 FY26, with consolidated revenues reaching ₹389.4 crores, marking a 17.1% year-on-year and 20.7% sequential growth. This improvement was driven by a change in strategies focusing on volume growth and cost base optimization. The company's operating EBITDA, excluding the impact of currency movement and other one-off📎s, stood at ₹39.7 crores, representing 10.2% of revenues, indicating a strong operational recovery from the previous quarter.

    02

    MDF Business Growth and Product Strategy

    Domestic MDF volumes demonstrated robust growth, increasing by 30.5% year-on-year and 26.8% sequentially. This was supported by increased outreach, ground activation, and new product launches like HCW Outdoors, ThinMDF, and Fire Retardant MDF. The company realigned its MDF pricing premium with peers, leading to a 4% year-on-year reduction in overall realization, though half of this was attributable to product mix changes post new plant addition, implying a net 2% price realignment.

    03

    Operational Efficiency and Cost Management

    Concerted efforts on the operational front led to a significant reduction in the operating cost of production, impacting margins positively by 5.5% compared to Q1. This was achieved through raw material optimization, improved consumption efficiencies, and better power and fuel management across all three plants. Management expects further improvements in operational efficiency as capacity utilization increases.

    04

    Financial Impact of External Factors and Debt Reduction

    Despite operational improvements, reported EBITDA was ₹27.8 crores (7.1%) due to external factors. The company incurred an adverse exchange rate movement impact of ₹12.5 crores this quarter (₹40 crores cumulative for H1) on Euro-denominated borrowings. Additionally, incremental interest and depreciation from the new plant contributed ₹20 crores to H1 expenses. However, net debt reduced by ₹60 crores to ₹173 crores, with an actual reduction of ₹71 crores excluding non-cash FX changes, indicating strong cash generation.

    05

    Market Dynamics and Import Scenario

    The operating environment continues to evolve with stable realizations and softening timber costs. MDF imports slowed significantly to less than 1,000 cubic meters per month in Q2 FY26, down from an average of 20,000 cubic meters in H2 FY25. This reduction is attributed to BIS norms implementation, current price points, and foreign currency rates, with management expecting imports to remain muted in coming quarters.

    06

    Guidance and Future Outlook

    For FY26, Greenpanel expects domestic MDF volumes to grow in the high teens and operating EBITDA (excluding FX and one-off📎s) to average high single-digit to early double-digit. The new South plant's utilization was 40% in Q2 and is expected to reach 60% by Q4. Management does not foresee major price increases in the immediate term, focusing instead on volume growth and market share in more lucrative segments to improve margins.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.