Concall AI

Greenply Industries Limited — Q2 FY26 earnings call

Call held 4 Nov 2025

Management summary

Greenply Industries reported a mixed Q2 and H1 FY26, with solid revenue growth in both consolidated and MDF segments, but a temporary dip in MDF margins due to expansion-related shutdowns and inventory adjustments. The company remains optimistic about H2 FY26, projecting double-digit growth and margin recovery across segments, driven by BIS implementation and strategic marketing. The Furniture & Fitting JV continues to incur losses but shows improving run rates and aggressive future targets.

Highlights

Consolidated quarterly revenue (Q2 FY26) at INR688.6 crores, up 7.5% YoY.
Consolidated core EBITDA (Q2 FY26) at INR56.8 crores, with a margin of 8.2% (down 80 bps YoY).
Consolidated half-yearly revenue (H1 FY26) at INR1,289.4 crores, up 5.3% YoY.
Consolidated half-yearly EBITDA (H1 FY26) at INR118.4 crores, up 2.5% YoY, with a margin of 9.2%.
MDF Q2 FY26 revenue grew 16.1% YoY to INR146.8 crores, with volume up 15.9% YoY to 47,018 CBM.
MDF Q2 FY26 EBITDA margin was 8.3%, impacted by a temporary shutdown for capacity expansion.
Plywood H1 FY26 revenue grew 3.1% YoY to INR995.5 crores, with volume growth of 2.5% YoY.
Consolidated net debt stood at INR510 crores at the end of Q2 FY26.

Key financials

01 Consolidated Revenue ₹688.6 Cr +7.5%YoY
02 Consolidated Core EBITDA ₹56.8 Cr
03 Consolidated Core EBITDA Margin 8.2% -0.8%YoY
04 Consolidated H1 Revenue ₹1,289.4 Cr +5.3%YoY
05 Consolidated H1 EBITDA ₹118.4 Cr +2.5%YoY
06 Consolidated H1 EBITDA Margin 9.2% -0.2%YoY
07 Consolidated H1 PAT ₹44.4 Cr
08 Consolidated Net Debt ₹510 Cr

What they filed

Q1 FY27: revenue up 20.6%, net profit up 35.7% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	640	614	649	601	689 +8%	673 +10%	776 +20%	725 +21%
Expenses	587	564	602	548	638	622	690	652
EBITDA	53	51	46	52	51 −4%	51 +0%	87 +89%	73 +40%
Margin	8%	8%	7%	9%	7%	8%	11%	10%
Other income	2	3	6	18	2	-3	-13	2
Interest	14	5	13	19	13	10	13	7
Depreciation	15	15	15	15	16	17	17	17
Profit before tax	26	33	24	36	23 −12%	22 −33%	44 +83%	49 +36%
Tax rate	32%	27%	32%	21%	31%	35%	29%	24%
Net profit	18	24	17	28	16 −11%	14 −42%	31 +82%	38 +36%
EPS	1.42	1.96	1.32	2.28	1.28	1.15	2.46	3.00

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 (H1 FY26)
₹995.5 Cr Revenue2.5% Volume Growth₹80.6 Cr Core EBITDA8.1% EBITDA Margin
MDF (Q2 FY26)
₹146.8 Cr Revenue47,018 CBM Volume8.3% EBITDA Margin
Furniture & Fitting JV (Q2 FY26)
₹11.4 Cr Sales₹11.8 Cr PAT Loss₹5.9 Cr Greenply Share of Loss
Furniture & Fitting JV (H1 FY26)
₹17.9 Cr Revenue₹22.6 Cr PAT Loss₹11.3 Cr Greenply Share of Loss

Guidance & targets

Profitability

MDF EBITDA Margin Profitability · H2 FY26 · High confidence 16%

However, we remain confident of achieving double-digit margins in the range of 16% in H2 FY '26.

— Sanidhya Mittal
Plywood EBITDA Margin Profitability · H2 FY26 (if growth >15%) · Medium confidence 10% plus

Yes, if we get very good growth, if we get a growth which is more than 15% for H2, then for sure, our internal working says that we can even touch 10% plus margin for H2.

— Manoj Tulsian
MDF Full Year EBITDA Margin Profitability · FY26 · High confidence 14.5%-15%

for the full year MDF with this guidance may reach around 14.5%, 15% margin for the full year.

— Manoj Tulsian
Plywood Full Year EBITDA Margin Profitability · FY26 · High confidence 8.5%-8.7%

and the margin can be around 8.5% or 8.7% for the full year, 8.5% actually. For the full year, it can be around 8.5%.

— Manoj Tulsian

Volume

Plywood Volume Growth Volume · H2 FY26 · High confidence 10% plus

And we are very optimistic that in quarter 3 and quarter 4 also of this year, we'll be actually able to grow at 10% plus in volume...

— Manoj Tulsian
MDF Full Year Volume Growth Volume · FY26 · High confidence Higher double-digit

Growth for MDF, what we are talking about in any case for the full year also will be higher double-digit.

— Manoj Tulsian
Plywood Full Year Volume Growth Volume · FY26 · High confidence 6.5%-7%

Plywood, full year growth -- volume growth is only around, I think, 3.5% in H1. 3% and we are talking of 10% plus. So it can be like 6.5% to 7% volume growth for the full year...

— Manoj Tulsian

Revenue

Furniture & Fitting JV Revenue Revenue · H2 FY26 · High confidence INR25-30 crores

So for H2, for sure, we are looking at INR25 crores plus, may go up to INR30 crores because our dealer base is improving every month.

— Manoj Tulsian
Furniture & Fitting JV Turnover Revenue · FY27 · High confidence INR100 crores

For that full year next year, we are targeting INR100 crores.

— Manoj Tulsian
Samet JV Monthly Run Rate Revenue · H2 FY26 · High confidence INR5 crores

And we hope that this run rate moves to around INR5-odd crores per month in H2.

— Manoj Tulsian

Capex

Total Capex Capex · H2 FY26 · High confidence INR100-110 crores

All this together can take around almost -- plus some maintenance capex may actually take around INR100 crores to INR110-odd crores of outflow.

— Manoj Tulsian
Total Capex (including JV investment) Capex · FY26 · High confidence INR155-160 crores

We have almost spent around INR56 crores in H1. So it will be like almost INR155 crores to INR160 crores for the full year.

— Manoj Tulsian

Capacity

MDF Capacity Expansion Capacity · FY28 · High confidence New line needed

We surely need the capacity in FY '28.

— Manoj Tulsian

Market context

MDF Volume Growth Volume · H2 FY26 · High confidence Double-digit

However, with operations now fully normalized with enhanced production capacity, we are confident of a strong rebound in the second half and expect to return to double-digit margin levels as well as double-digit volume growth.

— Manoj Tulsian
Plywood EBITDA Margin Profitability · FY27 · Medium confidence Double-digit

And if we are able to achieve a 10% plus EBITDA this year in H2, then for sure, we are in double-digit margins in plywood business for next year.

— Manoj Tulsian

Risks & concerns

MDF competitive pricing / undercutting
medium

Competitors with large capacities are undercutting prices, especially in industrial/interior grades, leading to slightly lower realizations, but management is confident in maintaining margins due to operating efficiencies.

Both acknowledged
Furniture & Fitting JV operating at a loss
medium

JV reported PAT loss of INR11.8 crores in Q2 FY26 and INR22.6 crores in H1 FY26, partly due to 45-50% imported products. Management plans Phase 2/3 expansion to manufacture in India and improve margins.

Management acknowledged
Q2 MDF margin decline due to one-off factors
low

Margin decline was temporary due to shutdown for capacity expansion, liquidation of old/non-moving inventory at a discount, and outsourced material consumption.

Management acknowledged

Areas of evasion (1)

Specific capex number for HDF flooring

Q&A highlights

3 direct

Impact of BIS norms on demand shift and Greenply's benefits. Direct

The biggest benefit, if you really see, has come because the imports have reduced significantly. So like if you have to compare last year's versus this year's numbers, so imports this year compared to last year, both in MDF and plywood is like 3% to 4% of last year's number.

Directly addresses a key regulatory change and quantifies its positive impact on reducing imports, benefiting organized players.

Asked by Arpit Kumar

MDF margin decline in Q2 and outlook for H2, competitive behavior. Direct

The margin decline during the quarter is one-off and is primarily due to 3 factors: reduction in finished goods inventory, resulting in under absorption of overheads, liquidation of old and non-moving inventory at a higher discount, resulting in lower realization and outsourced material consumption to temporarily balance the market needs.

Explains the reasons for the margin dip, reassuring investors it's not a structural issue, and reiterates confidence in H2 margin recovery.

Asked by Udit Gajiwala

Bundling strategies for plywood and MDF, and specific revenue targets for the Furniture & Fitting JV. Direct

No. I mean, I've not understood. Bundling strategy means what? Actually, yes, we get the advantage that if there is a plywood dealer, we definitely have the sales team which takes a lead. So the MDF team takes a lead from the plywood team and tries and approach them and vice versa. But there's no bundling sales per se. ... For next year, we are looking at aggressively, if you ask us, we are looking at that possibly we'll be able to touch anything around INR100 crores as a turnover.

Clarifies the company's approach to cross-selling between segments and provides concrete, aggressive targets for the relatively new JV, indicating its growing importance.

Asked by Ritesh Shah

3 min read 6 chapters

Detailed narrative

Q2 & H1 FY26 Consolidated Performance Overview

Greenply Industries reported a consolidated quarterly revenue of INR688.6 crores in Q2 FY26, marking a 7.5% year-on-year growth. The consolidated core EBITDA for the quarter stood at INR56.8 crores, with a margin of 8.2%, an 80 basis point decline from the previous year. For the first half of FY26, consolidated revenue reached INR1,289.4 crores, growing 5.3% year-on-year, while EBITDA grew 2.5% to INR118.4 crores, with a margin of 9.2%. Profit after tax for H1 FY26 was INR44.4 crores.

MDF Segment Growth and Margin Outlook

The MDF business saw robust growth in Q2 FY26, with revenue at INR146.8 crores (up 16.1% Y-o-Y) and volume at 47,018 CBM (up 15.9% Y-o-Y). The Q2 EBITDA margin for MDF was 8.3%, impacted by a temporary shutdown for capacity expansion from 800 CBM to 1,000 CBM per day, inventory liquidation, and outsourced material. Management is confident of a strong rebound in H2 FY26, targeting double-digit volume growth and a 16% EBITDA margin, with full-year FY26 margin expected to be 14.5%-15%.

Plywood Business Strategy and H2 Expectations

The plywood segment achieved INR995.5 crores in revenue for H1 FY26, a 3.1% Y-o-Y growth, with volume growth of 2.5%. Core EBITDA for H1 FY26 was INR80.6 crores, with an 8.1% margin. Management is optimistic about H2 FY26, projecting over 10% volume growth due to BIS implementation, reduced imports, stable raw material prices, and internal process improvements. They aim for a 10% plus EBITDA margin in H2 if volume growth exceeds 15%, with a full-year FY26 margin target of 8.5%-8.7% and volume growth of 6.5%-7%.

Impact of BIS Norms and Market Dynamics

The implementation of BIS norms has significantly reduced imports, with both MDF and plywood imports being only 3% to 4% of last year's numbers, directly benefiting organized players like Greenply. This regulatory change, coupled with steady timber prices, creates a favorable environment. The company has also expanded its marketing strategy to include the value-focused Ecotec range and the growing MDF category, enhancing product visibility across key market segments.

Furniture & Fitting Joint Venture (Samet) Performance and Targets

The furniture and fitting JV reported sales of INR11.4 crores in Q2 FY26 and INR17.9 crores for H1 FY26, incurring a PAT loss of INR11.8 crores and INR22.6 crores, respectively. Greenply's share of the loss was INR5.9 crores in Q2 and INR11.3 crores in H1. Management views these losses as initial investments for brand building and targets H2 FY26 revenue of INR25-30 crores, with a monthly run rate of INR5 crores. An aggressive target of INR100 crores turnover is set for FY27, with plans for Phase 2/3 expansion to reduce reliance on imports and improve margins.

Capex and Future Capacity Expansion Plans

Greenply's consolidated net debt stood at INR510 crores at the end of Q2 FY26, with confidence in maintaining a debt-equity ratio around 0.5x despite further capex. The company plans to invest INR100-110 crores in H2 FY26, covering plywood process improvements, line balancing, the Odisha plant construction, and the PVC plant. The total capex for FY26, including JV investment, is projected to be INR155-160 crores. A new MDF capacity expansion is deemed necessary by FY28, with location and partners to be finalized in the next 5-6 months.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript