India · Delayed Price · Currency is INR Greenpanel Industries Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw strong volume growth in MDF and new product launches, but profitability was impacted by higher costs and currency effects. The company remains focused on volume growth and margin improvement, with no major CapEx planned for FY 2027 amid ongoing geopolitical and cost uncertainties.
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Q3 FY26 delivered 11.4% revenue growth and strong MDF volume gains, with gross margins at 50% and operating EBITDA margin at 11.2%. Cost optimization, new product launches, and stable raw material prices supported performance, while competitive pricing and subsidy recognition impacted realizations and margins.
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Q2 FY26 saw a strong operational and financial turnaround, with revenue up 17.1% YoY and domestic MDF volumes up 30.5% YoY. Margins improved due to cost optimization, while FX losses and high chemical costs weighed on results. Guidance remains for high teens volume growth and stable margins.
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Q1 saw revenue of INR 323 crores, with gross margin at 47% and reported EBITDA negative due to forex losses and new plant costs. Despite a year-over-year decline in MDF and plywood revenues, guidance remains unchanged, with focus on cost optimization, market share recovery, and margin improvement as timber prices fall and new plant stabilizes.
Fiscal Year 2025
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Q4 FY25 saw a sharp drop in MDF domestic volumes and profits, offset by higher export growth and improved realizations. Margin recovery is expected in FY26, driven by new capacity, lower wood prices, and regulatory changes, with significant EPCG incentives to be recognized.
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Q3 FY25 saw a 7% year-on-year revenue decline and a 75% drop in post-tax profit, driven by higher wood costs and lower realizations. New capacity is set to come online in Q4, with FY26 targeting 8-10% volume growth and improved margins as expansion ramps up.
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Domestic and export volumes declined due to competitive pricing and higher costs, impacting margins and profits. The company expects a recovery in H2 with targeted volume growth, margin improvement, and the launch of a new MDF plant, while cost pressures and industry capacity remain key risks.
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Q1 FY25 saw a 10.2% rise in domestic volumes but a 21% export drop, with EBITDA margins hit by high timber costs and intense competition. PAT fell 58% year-over-year, but management maintains 16.4% margin and 15% volume growth guidance for FY25.