Greenply Industries Limited

Greenply Industries reported a consolidated quarterly revenue of INR673.4 crores, marking a 9.6% year-on-year growth. The consolidated core EBITDA for the quarter stood at INR58.9 crores, with a margin of 8.7%, an increase of 50 basis points compared to the corresponding quarter. For the nine months ended December 31, 2025, consolidated revenue was INR1,962.8 crores, growing 6.7% year-on-year, and core EBITDA was INR177.3 crores with a 9% margin. Management expressed confidence in sustaining double-digit volume growth across both plywood and MDF segments in H2 FY26, having achieved it in Q3 FY26.

The plywood business achieved a volume growth of 12.5% year-on-year in Q3 FY26, contributing INR521.7 crores in revenue, an 8.9% value growth. Despite a 4.9% decrease in average realization per square meter to INR244, the core EBITDA margin remained intact at 8.4%. The company's strategy of enhancing product visibility through a three-brand communication approach, focusing on distribution depth, product range, and investing in the mid-segment brand 'Ecotec', is yielding encouraging results and is expected to drive mid-teens volume growth going forward^⏳.

The MDF business recorded INR152 crores in revenue for Q3 FY26, reflecting 11.7% year-on-year value growth and 14.5% volume growth (48,383 CBM). Capacity was successfully expanded from 800 to 1,000 CBM. However, initial operational challenges in October and November led to a moderated margin of 10.1%, below the expected 12%. With operations now stabilized and January production being the highest ever, management anticipates a strong rebound in margins to 16% and over 20% sales growth in Q4 FY26.

The Board approved an investment of INR425 crores (including GST) for a second MDF line at Vadodara, with a capacity of 700 cubic meters per day and a revenue potential of INR600 crores. This new line is expected to be commissioned in 15 months, with commercial operations commencing by Q2 FY28. The company targets a Return on Capital Employed (ROCE) of 16-18% for this new line, leveraging efficiencies from co-location and dedicated lines for thin and thick boards. The HDF flooring line and PVC/WPC plant are also slated for commercial production by March '26.

Greenply's consolidated net debt stood at INR528 crores at the end of Q3 FY26, aligning with guided capex plans. The company aims to maintain its debt-to-equity ratio within 0.5x to 0.6x by year-end. While the net debt position is expected to increase to INR600-650 crores by March '27 due to new capex, management assured that the net debt to EBITDA ratio would remain below 2x for FY27 and decrease in subsequent years, with investments primarily funded by internal accruals.

The Furniture and Fitting Joint Venture reported sales of INR13.4 crores in Q3 FY26, contributing to a total revenue of INR31 crores for the nine-month period. The JV incurred a PAT loss of INR15 crores in Q3 FY26, with Greenply's share amounting to INR7.7 crores, primarily due to increased marketing spend for exhibitions. Management projects a robust growth of 30-35% for the JV in the next year and expects it to achieve profitability by FY28, driven by planned manufacturing in India to reduce import costs.