Greenply Industries Limited — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Greenply Industries Limited reported a strong Q4 FY26, with consolidated revenue growing 19.6% YoY to ₹776.2 crores and core EBITDA margin expanding to 12%. The company successfully navigated geopolitical challenges and raw material cost increases by implementing price hikes and leveraging operating efficiencies, particularly in MDF. While an exceptional item of ₹15.16 crores was recognized for international impairments, management expressed confidence in margin sustainability and future growth, supported by ongoing capex for new MDF and plywood technology upgrades.

Highlights

  • Consolidated quarterly revenue of ₹776.2 crores, up 19.6% YoY.

  • Consolidated core EBITDA margin expanded 150 bps YoY to 12%.

  • FY26 PBT (before equity losses, forex gain/loss, finance costs, exceptional items) grew 21% YoY to ₹186 crores.

  • MDF segment achieved its highest ever quarterly revenue of ₹189.4 crores, with volume growth of 45.3% YoY.

  • Debt-to-equity ratio maintained at 0.52, within the guided range of 0.5-0.6, despite significant capex.

Concerns

  • Exceptional item of ₹15.16 crores recognized for impairments related to international exposure (Dubai entity).

  • Income tax search and seizure operation conducted from Feb 26 - Mar 2, 2026, though no demand or penalty received as of call date.

  • Furniture & Fittings JV reported a PAT loss of ₹13 crores in Q4 FY26 (Greenply share: ₹6.5 crores).

  • Receivables days increased by 3 days from December '25 due to growing OEM and B2B sales.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹776.2 Cr
    YoY +19.6%
  • Consolidated Core EBITDA
    ₹93.2 Cr
  • Consolidated Core EBITDA Margin
    12%
    YoY +14.3%

FY26

  • Consolidated Revenue
    ₹2,739 Cr
    YoY +10.1%
  • Consolidated Core EBITDA
    ₹270.5 Cr
    YoY +13.8%
  • Consolidated Core EBITDA Margin
    9.9%
  • PBT (pre-exceptional)
    ₹186 Cr
    YoY +21%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue640 614 649 601 689 +8%673 +10%776 +20%725 +21%
EBITDA53 51 46 52 51 −4%51 +0%87 +89%73 +40%
Net profit18 24 17 28 16 −11%14 −42%31 +82%38 +36%
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 (Q4 FY26)
    ₹588.5 Cr Revenue15.6% Volume Growth14.6% Value Growth10.4% Core EBITDA Margin
  • Plywood (FY26)
    ₹2,105.7 Cr Revenue8.3% Volume Growth₹185.4 Cr Core EBITDA8.8% Core EBITDA Margin
  • MDF (Q4 FY26)
    ₹189.4 Cr Revenue62,000 CBM Volume39.6% Value Growth45.3% Volume Growth17% Margins
  • MDF (FY26)
    ₹635.6 Cr Revenue13.4% Margins
  • Furniture & Fittings JV (Q4 FY26)
    ₹12.99 Cr Sales₹13 Cr PAT Loss₹6.5 Cr Greenply Share of Loss
  • Furniture & Fittings JV (FY26)
    ₹44.27 Cr Revenue₹50.8 Cr PAT Loss₹25.4 Cr Greenply Share of Loss

Capital allocation

high confidence
  • Capex ₹425 Cr
    • New MDF facility (FY27) ₹300 Cr
    • New MDF facility (FY28) ₹125 Cr
    • Odisha plywood new plant ₹130 Cr
    • Plywood technology improvement projects ₹45 Cr
    So currently we anyways have a big capex which is our MDF plant, which is almost INR400 crores, INR425 crores of capex. And we also have the improvement or the new technology implementation cost of the plywood plant and the Odisha capex. So, with all of this given in place and our cash flows given in place, maybe for 1 year, we might peak out to maybe 0.7 or 0.72 debt/equity. ... I think INR425 crores was only on the MDF segment, out of which I think almost close to INR300 crores would be in the current FY and INR125 crores would be in the next FY. ... So, in the Plywood segment on Odisha ply, the total cost will be around INR130 crores for Odisha plywood. And all the other plywood improvements would be around INR45 crores, INR50 crores, all plants put together.
  • Debt Net ₹461 Cr · 0.5× EBITDA
    Despite the growth capex undertaken, our consolidated net debt stood at INR461 crores at the end of the current quarter. Our debt-to-equity ratio remains at 0.52, in line with our guided range of 0.5 to 0.6 for the year, even after the announcement and execution of the planned capex.
  • Dividend ₹0.5/share (final)
    The Board of Directors has recommended a dividend at the rate 50%, which means INR0.50 per equity share for the year ended 31st March 2026, which is subject to the approval of shareholders of the company at the Annual General Meeting.
  • Liquidity Liquidity disclosed Operating cash flow is continuously increasing, supporting capex plans.
    the operating cash flow is also continuously increasing with the given capex plan.

Guidance & targets

Volume

  • Plywood Volume Growth Volume · FY27 · High confidence 10%
    Our strategic road map for the remainder year is clear, driving volume while protecting our bottom line. We have set a volume 10% growth target for plywood backed by our strong brand

    — Sanidhya Mittal

  • MDF Volume Growth Volume · FY27 · High confidence 25-30%
    In MDF, we are capitalizing on rising demand and confident in delivering 25% to 30% volume growth.

    — Sanidhya Mittal

Margin

  • MDF EBITDA Margins Margin · FY27 · High confidence 12%
    I think 17% is something we can sustain because whatever cost has increased, we've already passed on and in the increased passed-on cost, I think we are still able to do the volumes that the company requires to do. So, in MDF, we are confident that this margin can sustain.

    — Sanidhya Mittal

  • Plywood EBITDA Margins Margin · FY27 · High confidence 10.4%
    And on plywood also, I think this margin can easily sustain, provided we are able to achieve the desired volume growth that we have targeted. This margin in plywood only kicks in once the volumes are achieved. So whatever margin we've been able to deliver was purely on account of volume. So, if the volume guidance is achieved, then we will 100% hit the plywood margins as well.

    — Sanidhya Mittal

Debt

  • Debt-to-Equity Ratio Debt · FY27 (peak), FY28 (return to range) · High confidence 0.7-0.72 (peak), then 0.5-0.6
    maybe for 1 year, we might peak out to maybe 0.7 or 0.72 debt/equity. And then again, we come back in the range of 0.5 to 0.6 the following year itself.

    — Sanidhya Mittal

Tax Rate

  • Effective Tax Rate Tax Rate · Next fiscal year · High confidence 22%
    So, the effective tax rate is around 22% because we have in the Greenply, on the standalone, the tax rate is 22% and in our subsidiary companies, the tax rate is around 17%. So effective it will come to around 22%.

    — Sanjiv Keshri

Profitability

  • Furniture & Fittings JV Break-even Profitability · Mid-year after next fiscal year (mid-FY28) · Medium confidence Break-even
    I think the year after this, somewhere in the middle of the year, we should reach a situation where the business starts breaking even.

    — Sanidhya Mittal

  • MDF ROC Profitability · Medium confidence 18-20%
    I think anything between 18%, 20%, if we are in that range, I think we are very lucky and we are well-placed.

    — Sanidhya Mittal

Raw Material Costs

  • Timber Prices Outlook Raw Material Costs · FY27 · High confidence Stable/flat
    I think timber prices have been quite stable for us in quarter 4 and the year ahead also looks like that. ... considering that it'll be the same, it will be flat.

    — Sanidhya Mittal

Revenue

  • PVC Board Revenue Contribution Revenue · FY27 (peak annual) · High confidence ₹75-80 crores
    Around INR75 crores to INR80 crores is the peak revenue we can achieve in the given capex.

    — Sanjiv Keshri

What to watch in Q1 FY27

MDF Volume Growth

FY27
Current 45.3% YoY in Q4 FY26
Target 25-30% volume growth

Why it matters

MDF is a key growth driver, and achieving this target is crucial for overall company performance and margin sustainability.

In MDF, we are capitalizing on rising demand and confident in delivering 25% to 30% volume growth.

Risks & concerns

  • Geopolitical environment impacting raw material sourcing and costs

    medium

    Sharp increase in chemical prices (>50%), elevated fuel charges, and war risk insurance premiums impacted costs, especially for MDF.

    Management acknowledged, mitigated by price hikes and domestic sourcing evaluation

  • Impairments related to international exposure (Dubai entity)

    medium

    Review of international exposure led to ₹15.16 crores impairment to investment, financial guarantees, and advances to GMEL.

    Management acknowledged, ₹15.16 crores exceptional item, all potential liability provided for

  • Income tax search and seizure operation

    low

    Operation conducted from Feb 26 - Mar 2, 2026; company believes it was based on 'wrong Intel' and its books are clear.

    Management downplayed, no liability or demand received, matter at preliminary stage

  • Volatility in MDF gross margins

    low

    Past volatility from 55% to 45% was due to the plant not being fully operational during Q2 and Q3 FY26 due to line extension.

    Analyst downplayed, attributed to past operational disruptions and product mix, not expected to continue

Q&A highlights

8 direct
Sustainability of MDF and plywood margins post Q4 performance. Direct
on the MDF front, I think these margins are sustainable, and you are absolutely right that this margin was achieved before the price rise. I think the reason we were able to achieve this was purely the incremental volume that we had achieved in terms of production and sales.

Management confirmed that strong Q4 margins are sustainable and driven by operational factors like incremental volume and operating leverage, even before recent price hikes.

Asked by Pankaj Tibrewal

Debt-to-equity ratio trajectory given ongoing capex plans. Direct
maybe for 1 year, we might peak out to maybe 0.7 or 0.72 debt/equity. And then again, we come back in the range of 0.5 to 0.6 the following year itself.

Provides clear guidance on the expected peak leverage and subsequent deleveraging, reassuring investors about the company's financial prudence amidst significant investments.

Asked by Pankaj Tibrewal

Impact and status of the income tax search and seizure operation. Direct
We had clearly filed in our disclosure and in the audit report the auditor has also clearly mentioned that there is no liability on the company, and there was nothing seized from our premises in terms of documents or cash or any such thing.

Addresses a significant red flag by clarifying that no liability or demand has been received, and the company's books are clear, mitigating investor concern.

Asked by Keshav Lahoti

Reasons for past MDF gross margin volatility and outlook for future stability. Direct
I don't think it is going to be volatile going forward. In the past, if you see the last financial year, 2 quarters out of the 4 quarters, the plant was not fully operational. ... The quarter 2 and quarter 3 got disrupted because of the line extension that we did.

Explains past margin volatility as due to specific operational disruptions and product mix, implying a more stable margin environment going forward as operations normalize.

Asked by Utkarsh Nopany

Detailed breakdown of the ₹425 crores capex plan for FY27 and FY28. Direct
INR300 crores would be in the current FY [FY27] and INR125 crores would be in the next FY [FY28]... on Odisha ply, the total cost will be around INR130 crores... other plywood improvements would be around INR45 crores, INR50 crores, all plants put together.

Provides a comprehensive breakdown of significant capex plans, allowing investors to understand the scale and allocation of future investments across different segments and projects.

Asked by Utkarsh Nopany

Details and benefits of the new plywood manufacturing technology. Direct
this saves overall manpower, cost, material as well as improves the quality drastically... can even prelam the plywood right after the ply is made directly with paper instead of laminate. So, I think with this technology in place, the company can really improve sales and margin, both.

Highlights a key strategic initiative aimed at improving product quality, reducing costs, and enhancing market acceptance, which is crucial for long-term competitiveness and premiumization.

Asked by Karan Bhatelia

Reasons for the increase in receivables days. Direct
It is a mix and our OEM business is also now growing drastically. Even though the payments are protected in terms of LC and other instruments, but the debtor days are much higher there to achieve growth. So, to achieve growth, we're also doing certain B2B sales, which is OEM.

Explains the increase in receivables as a strategic outcome of growing OEM and B2B sales, which typically have longer payment cycles, rather than a sign of deteriorating collections or credit quality.

Asked by Ritesh Shah

Strategic rationale behind the company's focus on the OEM segment. Direct
OEM is a strategic focus for us because we feel a lot of people in urban India don't want carpenters to come into the house and work, which basically means that their mindset is becoming more towards organized, readymade furniture buying.

Clarifies the long-term strategic rationale for shifting towards OEM, aligning with evolving consumer preferences for ready-made furniture and ensuring future market relevance and growth.

Asked by Aasim

3 min read 8 chapters

Detailed narrative

Q4 FY26 and Full Year Financial Performance Overview

Greenply Industries Limited reported a strong Q4 FY26, with consolidated revenue growing 19.6% YoY to ₹776.2 crores, marking its highest ever quarterly revenue. Core EBITDA margin expanded by 150 bps YoY to 12%. For the full year FY26, consolidated revenue was ₹2,739 crores (+10.1% YoY) and core EBITDA was ₹270.5 crores (+13.8% YoY), with margins at 9.9%. PBT, before exceptional items, grew 21% YoY to ₹186 crores for FY26.

Impact of Geopolitical Situation and Raw Material Costs

The company faced challenges due to the evolving geopolitical environment, which led to a sharp increase in chemical prices (over 50%) and elevated logistics costs, particularly impacting the MDF segment where chemicals constitute nearly 30% of raw material costs. To mitigate these pressures, Greenply implemented calibrated price increases of 5-10% for MDF and 4-5% for plywood, effective from April. The company is also evaluating domestic sourcing opportunities for chemicals to reduce import reliance.

Exceptional Item and International Exposure Review

Greenply recognized an exceptional item of ₹15.16 crores for impairments related to its investment, financial guarantees, and advances to its Dubai entity (GMEL). This one-time adjustment was a proactive measure taken after a thorough review of international exposure, aimed at safeguarding financial integrity. Management confirmed that all potential liabilities related to this exposure have been fully provided for in the books, with no impact on underlying operating cash flow or long-term growth strategy.

MDF Segment Outperformance and Margin Sustainability

The MDF segment delivered its highest ever quarterly revenue of ₹189.4 crores in Q4 FY26, with volume and value growing 45.3% and 39.6% YoY respectively. Margins for the quarter stood at 17%, supported by strong sales and operating leverage. Management expressed confidence in sustaining these margins, attributing them to incremental volumes and operating leverage achieved before the recent price hikes. The company targets 25-30% volume growth for MDF.

Plywood Segment Strategy and Technology Upgrades

The plywood segment recorded 15.6% YoY volume growth in Q4 FY26, with revenue of ₹588.5 crores. Greenply is undertaking significant 'fundamental changes' in plywood production technology, with new processes already implemented in two facilities and planned for two more during the current financial year. This initiative aims to improve product quality, reduce costs, and enhance market acceptance, particularly to meet the precise requirements of OEM clients who are increasingly driving demand for ready-made furniture.

Capital Expenditure and Debt Management

Greenply is pursuing substantial capex, including approximately ₹425 crores for a new MDF facility (₹300 crores in FY27, ₹125 crores in FY28), ₹130 crores for an Odisha plywood plant, and ₹45-50 crores for plywood technology upgrades. Despite these investments, consolidated net debt stood at ₹461 crores, maintaining a debt-to-equity ratio of 0.52, within the guided range of 0.5 to 0.6. The company anticipates debt-to-equity to peak at 0.7-0.72 for about one year before returning to the 0.5-0.6 range, supported by continuously increasing operating cash flows.

Leadership Transition and Income Tax Inquiry Update

Mr. Manoj Tulsian has resigned as Joint Managing Director and CEO due to personal commitments but will continue his association with Greenply in an advisory capacity, ensuring a seamless transition. Separately, an income tax search and seizure operation was conducted at certain business premises from February 26 to March 2, 2026. As of the call date, no order, notice of demand, or penalty has been received, and the company's books of accounts are clear, with management believing the action was based on 'wrong Intel'.

Furniture & Fittings JV and New Product Line Commercialization

The Furniture & Fittings JV generated ₹12.99 crores in Q4 FY26 sales but reported a PAT loss of ₹13 crores (Greenply's share: ₹6.5 crores), reflecting its initial establishment phase requiring significant investment. Management expects the JV to break even by mid-FY28, driven by strong ramp-up and demand. Additionally, the new PVC and WPC plant commenced commercial production in April '26, with an annual installed capacity of 6 million kgs for doors and 3 million kgs for door frames, projected to contribute ₹75-80 crores in peak annual revenue.

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