Ladies and gentlemen, good day and welcome to the Greenply Industries Q2 and H1 FY26 earnings conference call hosted by Asian Markets Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note this conference is being recorded. I now hand the conference over to Sir Karan from Asian Markets Securities Private Limited. Thank you, and over to you, sir.
Thank you, Mark. Hi, everyone. Good evening. On behalf of Asian Markets Securities, we thank you for joining us on the Greenply Industries 2Q and first half FY26 conference call. In the panel today, we have Mr. Manoj Tulsian, Joint Managing Director, CEO, Sanidhya Mittal, Joint Managing Director, and CFO, Mr. Sanjiv. May I now invite Manoj to begin the proceedings of the call? Thank you, and over to you, sir.
Thank you, Karan, and good evening, everyone. It's a pleasure to have you all on this call. I will be updating you on Greenply's operating and financial performance for quarter two and H1 FY 2026. As communicated during our last call, we have been able to grow over Q1 and FY26 in both our segments. Also, during the quarter, we have achieved revenue growth on a YoY basis, and we are confident that the same momentum will continue in H2 also. The gradual progress in BIS implementation and steady timber prices continue to provide a favorable environment for organized and branded players like us. On the marketing strategy, I would like to share that Greenply campaigns primarily focus on the premium green range. However, communication has now been extended to the value segment, with Ecotec effectively addressing the affordability-driven consumer base.
The latest campaign, Kaam Sahi Daam Sahi, has actually positioned the brand effectively. With a focus on practicality and smart spending, the campaign has witnessed remarkable traction, driving strong brand recall and reinforcing Ecotec's standing in the mid-price category. We have also commenced advertising for its fast-growing MDF category, focusing on building stronger awareness. Through this three-brand communication approach, Greenply has strategically enhanced the visibility of its product portfolio across key market segments, spanning the premium green range, value-focused Ecotec products, and the growing MDF category. I would like to share with you that we have achieved a consolidated quarterly revenue of INR 688.6 crore, which is a growth of 7.5% on a YoY basis. Our consolidated core EBITDA for the quarter was INR 56.8 crore, with a core EBITDA margin of 8.2% compared to 9% in corresponding quarters, a decline of 80 basis points.
On a half-yearly basis, our consolidated revenue was at INR 1289.4 crore, which is a growth of 5.3% on a YoY basis. Our consolidated EBITDA was at INR 118.4 crores, which is a growth of 2.5% on a YoY basis. The EBITDA margin was at 9.2% as compared to 9.4% in H1 FY25. PBT before the losses on equity-accounted investees, foreign exchange gain/loss, and an adjustment to finance costs, an exceptional item is at INR 83.00 crores for H1 FY26, which is a 15% YoY growth as against PBT of INR 72.00 crore in H1 FY25. The profit after tax was INR 44.4 crore Let me now share the highlights of our individual business segments. We observed a significant demand for mid-value segments during the quarter, resulting in an average valuation per square meter of INR 242, a 3.5% decrease year-on-year. On the margin front, our core EBITDA margin for Q2 FY26 was 8.2% compared to 7.9% in the previous quarter.
The margin improved on a quarterly basis by 30 basis points. On a half-yearly basis, we have achieved a revenue of INR 995.5 crores, a growth of 3.1% on a YoY basis. Our volume growth for the first half of the year is 2.5% YoY. Our core EBITDA grew by 2.9% on a YoY basis to INR 80.6 crores in H1FY26, and the EBITDA margin stood at 8.1%. Moving on to MDF business, our revenue in 2Q FY26 was INR 146.8 crores, and volume at 47,000,018 CBM, which is a growth of 16.1% and 15.9% on a YoY basis. We successfully expanded our manufacturing capacity from 800 CBM per day to 1,000 CBM per day during this quarter. Production during the quarter was temporarily impacted by the expansion-related shutdown, as mentioned above, resulting in moderate margins of 8.3%.
The margin decline during the quarter is one-off and is primarily due to three 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. 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. More details on the MDF business will be shared by Sanidhya. Moving on to our furniture and fittings JV, we have achieved sales of INR 11.4 crores in Q2 FY26, achieving half-yearly revenue of INR 17.9 crores.
The JV reported a PAT loss of INR 11.8 crore in Q2 FY26, with our share of the loss amounting to INR 5.9 crores, and half-yearly PAT loss of INR 22.6 crore, with our share of the loss amounting to INR 11.3 crores. As these are initial periods and the brand has to be built up to compete with the premium brands in the country, we'll continue to invest significantly in brand building also. Our consolidated net debt stood at INR 510 crores at the end of current quarter. As previously communicated, this will further reduce with the liquidation of excess inventory, which started from this quarter onwards, and hence we remain confident that our debt-equity ratio will be in the range of 0.5 despite further CapEx in H2. With respect to our operations at Greenply Middle East Limited, we have further reduced exposure of our guarantees from $3.8 million to $2.7 million.
As a result, our contingent liability has also decreased from INR 32 crores to almost INR 24 crores. With this statement, I would like to hand it over to Sanidhya to provide some more insights on the MDF business. Over to you, Sanidhya.
Thank you, Manoj, and good evening to everyone on the call. Our sales in this quarter showed a 16.1% year-on-year improvement over the last quarter in terms of value terms, while during the quarter, our EBITDA margins were lower for the reasons highlighted earlier by Mr. Tulsian. However, we remain confident of achieving double-digit margins in the range of 16% in H2 FY26. We are confident that the second half of the year will see stronger revenue growth with improved operating efficiencies and driven by our focus on selling more value-added products. With this, I would like to open the floor for Q&A session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Arpit Kumar from Unifi Mutual Fund. Please go ahead.
Good evening. Thanks for the opportunity. So I have a couple of questions. Firstly, on the BIS norms, so after the implementation of the BIS norms for the industry, have you seen any noticeable shift in demand from organized players to unorganized players to organized players? And also, if you could highlight the benefits of BIS implementation for Greenply.
Okay. This is the first question?
Yeah, this is the first question.
So can you also talk about your second question, and then we can reply?
Yeah, sure. So the second question is, I just wanted to know your demand and supply outlook for the MDF and plywood industry over the next 12-24 months, specifically how you see the demand momentum for the MDF industry and the capacity utilization?
Okay. The first question is on BIS. We can only tell you about how we are able to see things happening. It's a continuous process, so it's not like something that it's been done across the country and everyone has become BIS compliant. We think it's still miles to travel, but the initial signs are very good, encouraging, and we keep reading and we keep also coming to know from the industry that BIS is continuously conducting such not only at the manufacturing location but also at the dealer point. In a way, it's sending a very strong message to the trade and the manufacturers that people have to comply with BIS norms. The biggest benefit, if you really see, has come because the imports have reduced significantly.
So 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%-4% of last year's number. So that itself clearly says as the first level of improvement, which is there, and most of that was getting used at the level of OEM or the key manufacturers. So that traction is visible clearly. But as I said, it's a continuous process. It will take some time for this to really show up, even larger benefits for the branded goods player. And we are very, very hopeful that this will continue to benefit companies like us.
In terms of the demand scenario on plywood, see, despite, if you really see, when you look at the real estate data, the residential data, there is a degrowth compared to last year, both in quarter one as well as quarter two. But still, if you really look at us, we have grown by around 7% in terms of volume. And we are very optimistic that in quarter three and quarter four also of this year, we'll be actually able to grow at 10% plus in volume. A, because of, of course, this BIS, which is helping the trade, which is helping us. B, also because we have done a lot of improvements in our own process.
We had hired a consulting service around a year back, and we started systematically, first of all, correcting the backend, which was our own supply chain, our production availability, and then getting into a lot of initiative on the sales side management and this. That has also started showing a very disciplined approach, which is also resulting in higher traction into the market. So we are very confident that from here on, we will be able to see better growth on Greenply, even in plywood as a business. In terms of outlook, look, Indian story remains very, very strong overall. These are few quarters where, again, as I said, the chips are slightly down, but I'm very much sure that with the type of growth which all of us are talking about, this sector is still to really fire the residential sector again.
Once that happens, then we can look at a much larger growth. We are very much prepared for the same. Sanidhya, you want to say anything on MDF outlook and?
I think demand in the MDF industry also remains strong. I think the imports are really down, even though the domestic competition is really tightened and significant today, which was a couple of years ago it didn't exist, that many domestic players, but with our brand and with our approach, I think we are very confident that we'll be able to sell our entire capacity, and we've already expanded our capacity. Manoj mentioned in his speech, I've mentioned, and now we're looking to quickly utilize the entire capacity, and I think H2 should be a display of that if things go as per plan.
Yeah, 100%. Yes.
So what is the current capacity utilization you are at for Q2?
For?
[audio distortion]
[audio distortion]
Yeah, MDF.
So MDF, actually, in Q2, we took a shutdown also, right? But if you look at it, whatever turnover we have achieved in Q2, that will utilize maybe around 70% of our capacity. So we are now good at capacity after this expansion on MDF.
Okay. Thank you. That answers my question. Thank you so much.
Thank you. The next question is from the line of Udit Gajiwala from YES Securities. Please go ahead.
Yeah, hi sir. Thank you for taking up my question. So sir, in terms of MDF margin, you mentioned that H2 will be 16%. So given that if there were no shutdown, was it just one-off? And how are you seeing the competitive behavior since they are taking a lot of price correction to push volumes? How is that rubbing off to the margins?
That is true. There are competitors sitting with large capacities to sell their capacities; they are undercutting. But that is in a particular segment to achieve a volume. So I think competitors with very, very large capacities, their focus is to sell the industrial grade or the interior grade in which they are mainly cutting prices. To look at our realizations also, our realizations have also slightly gone down. But we are very confident that we can still maintain a 16% margin for H2, given that now there'll be operating efficiencies in this plant. The 25% of the capacity has gone up, but the fixed cost remains almost the same. Hardly any change there. So a little bit of reduction in the realization, a little bit of cost increase, a little bit of efficiency increase, I think they're back to square one.
So whatever we were displaying or speaking about in Q1, I think we are maintaining the same. Obviously, Q2 was a one-off quarter because we originally shut down the plant for a month, but we took more than 40 days to actually get it up and running again. So we lost out on that, and that's the reason why you see these margins.
Quarter two is just a one-off case, right? You should look at us how we did in quarter one. I think the scenario was almost similar in quarter one also. There's not much change which has happened on the pricing or the realization side post quarter one. Quarter two, as we mentioned in the opening speech, gave us an opportunity also to liquidate some of our non-moving inventory because sales definitely had the target which they had to achieve. In a way, it was good that, yes, some of those materials went at a very heavy discount, which reflected in the margin also, which dropped to single digit. Good that we were able to feed those as capital. In any case, it was either a non-moving or very slow moving.
And so I think there is, and we are talking of now in H2, almost a higher double-digit growth. So you will see larger operating efficiency also getting into play because this 800 going into 1000, we are not adding any cost. It's just that my production level goes up with almost the same level of people, manpower, and everything, all my fixed costs. So we are pretty confident that if we are able to achieve our higher double-digit growth, which also is visible, we will be able to get a margin also of 16% .
Okay, sir. So fair to assume you're not assuming any price hikes. So if any of the industry price hikes comes up, that will be over and above to what these margins could be. Is that a fair understanding, or you're factoring some price hikes?
We are not factoring any price increase at this point of time.
Okay. And to post this expansion, what will be the split of capacity in the incremental, specifically? How much more value-added products can we produce?
So I think this is the main line capacity. So our press is going from 800 to 1000. And all our balancing equipment was already designed as per 1000. So I mean, it totally depends on our selling scale, then our sales team's efficiency to go out there and look for more value-added sales. So I think product mix is pretty much defined on sales, not because of the press.
So there's no differentiation in terms of the capacity within 800 or 1000 that we can only produce up to this much of value-added products. It's like what Sanidhya is saying. It's totally dependent on our sales orders and our strong work on the street.
Sure, sir. And just lastly, in plywood's working capital, we have seen some increase in the data. So is this just for with the spend or your efforts you're making for the Ecotec brand, and when can we expect it to normalize?
No, I think sales is also higher, if you see, compared to quarter one, if you're just comparing it with that. Our overdue status has not gone up significantly between quarter one and quarter two. However, there will be an effort to bring down our overdue in quarter three and quarter four. So maybe there will be some amount of working capital release, which internally we are targeting.
Okay, and just this last question to specify the 10% volume growth for H2. From that volume growth, can we achieve this 10% EBITDA margin that we are still eagerly waiting for the company to deliver?
See, raw material prices, which also we actually perceive that it will soften by quarter three. We at least still maintain that this year the raw material prices are very stable. And there is a most likely chance that the raw material prices may drop also. It can be end of quarter three, maybe in quarter four. And if that happens, then there will be an incremental margin accretion which will happen. In any case, our H2 plywood targets are much better compared to our H1 numbers. So some level of operating efficiency will play. That's why we said our H2 margin will be better than H1. Our investments on the marketing spend is also quite high because we have also started now, as I said, we have started investing on Ecotec as a brand when it comes to plywood as a segment.
And we continue to even invest on our premium brand, Greenply. So we are not cutting down anything on the marketing spend also. So keeping these things in mind, yes, 10% may or may not happen, but at this point of time, for sure, we don't want to promise 10%. 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.
All right. All right. Thank you for answering so much detail. Thank you so much.
Thank you, sir. Ladies and gentlemen, to ensure the management can address questions from all the participants, please limit your questions to two per person. If you have a follow-up, kindly rejoin the queue. The next question is from the line of Kaushal Sharma from Equinox Capital Ventures Private Limited. Please go ahead.
Hello. Hi, sir. Am I audible?
Yes, sir. You're audible.
Yeah. So my first question on your HDF flooring, like we are doing CapEx on our HDF flooring. So when can we expect to operationalize this?
Currently, we are conducting trials. The machine is fully installed, and we are in the process of making samples and displays for the entire market. Early December, I think we should start selling commercially.
So what is the CapEx in this involved, and the capacity are we looking for?
I think the CFO can share that. I don't have that number handy, and I don't want to give you a wrong number.
Maybe we can share it afterwards. If it's not there, maybe he will also not have at this point of time. It's not a major CapEx.
It's a very small CapEx.
It's a very small CapEx, but maybe we can give the number afterwards to you.
Okay, sir. My second question is on your plywood business. Like earlier in the last call, you said our target is around double-digit growth in this segment with double-digit margin. But currently, we are getting 3.1% year-on-year increase in H1 FY26 with core EBITDA 8.1%. So are we aligned with our target?
So as I mentioned, first thing, in quarter two, we got a volume growth of 7%. Our initial guidance was a 10% volume growth and also 10% margin for the full year. We have definitely missed out on the margin front in H1 because we could not register a growth of 10%. So somewhere, this 10% margin is also related to our volume growth. And since we missed out on the volume growth, we have clearly missed out on our EBITDA guidance also. For H2, we are very, very comfortable, as we mentioned, that one things like better BIS implementation, lower imports, raw material prices slightly more stable. And then, as we said, internally, we have done a lot of work taking support of a consulting firm also, which has now started showing results from the last quarter.
I mean, one that internally building up a lot of better controls and processes, better measuring systems, as well as this getting into branding investment on Ecotec as a brand, which is the value of the plywood business, is also showing us right signs in the market. So we are very confident now that double-digit growth in volume in H2 is doable. And if it goes to a higher double-digit, then maybe we can even surprise the market by actually giving a 10% plus EBITDA in H2. But we don't want to promise that at this point of time. 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.
Okay, sir. Thank you. And my last question, just want to know one clarification. I have seen your consolidated result, and we have generated some exceptional gain around INR 4.43 crores by selling 30% stake in our Greenply Middle East Limited. But the overall consideration is around INR 4.25 crores, but we have generated gain of INR 4.43 crores. So why the amount is not mixed? There is some mismatch in this amount.
Actually, this happened in quarter one, and whosoever asked for, we provided a full reconciliation because there are actually five, six adjustment entries because of the standalone, and then it gets consolidated, and then the way the forex thing gets reinstated and treated, so in case you want that detail, please reach out to our IR person, Mr. Jain, and he will be able to provide you that entire reconciliation.
Okay, sir. Thank you very much for answering my question.
Yeah, yeah. Pleasure.
Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead. So, Ritesh Shah, I request you to kindly unmute your mic.
Yeah, hi. Apologies for that. Thanks for the opportunity. Sir, on the MDF, I just wanted to clarify, there are no one-offs related to plant shutdown or restart in this quarter. If there's a number, if you could give that, that would be quite helpful.
Sorry? No, no. So we mentioned it is a mix of three things which we mentioned. One, because we had built up inventories, which we mentioned in the last quarter also, that whenever we take a shutdown, we cannot be out of market. And the shutdown was totally dependent on our capability to first build up that much of stock so that at least we are 70%-80% able to serve the market on the monthly requirement. So when actually the inventory gets built up, there is an overabsorption of overheads which results in slightly better margins. So in a way, if you can really see maybe quarter three, quarter four, or even quarter one this year, there can be an iota of an incremental margin which was partially due to the added inventory which we started keeping.
So when we liquidate, that portion of the margin actually gets wiped out. So that is one. Second, as I said, that we had some non-moving inventory and very slow moving inventory, which we used this as an opportunity by giving better target to the sales team so that they were pushed to somehow get rid of this inventory into the market by selling them at a higher discount. So that was the second reason. And the third was that despite whatever planning we did, we were still running out of some of the SKUs which would complete a particular order. So we went into some mode of trading also to balance some of these SKUs. And when you get into the trading time, so automatically your margin on that will be much lower.
It was a culmination of all three, which resulted in this drop of margin by almost six or seven, no, 8%-9% compared to quarter one. But now that these have gone up, we will be back to our 16% plus margin.
Sure. Sir, the second bucket, what you indicated, slow moving inventory, can you highlight what sort of SKUs were there? The reason I ask is because historically we have maintained that we don't intend to be there much in the industrial kind of things. So is this something that we had exposure on industrial? We had some inventory and we cleared that thing out. So is there some change in mix? How should we look at it?
Oh, I mean, we had old inventories. When you are running the line, 1% of the production is B grade. So we had it piled up for six months. So we thought when our plant is shut, let's utilize and let's sell everything we have. So we cleared all our B grade back then. Then we cleared some thicknesses or some unique sizes when the team had given a projection for sales, but that did not sell since inception. So we thought that instead of carrying that in our books, let's give whatever discount the market needs and let's actually liquidate that. So any old stock thing which was maybe a learning curve for us or maybe as a process it's produced, etc., was all cleared up during the.
Yeah, because it was only a learning curve, you may say, because initially what we started producing was clearly based on our sales team's forecast at that point of time. And some of the SKUs which we had much higher numbers in terms of forecast, but we hardly were able to sell. So those were the things which were not actually getting sold in the regular day-to-day thing. So this we got as an opportunity and window to push. [audio distortion] not mean that we were able to liquidate. We may still carry something out of that, but we took all our efforts to use this as an opportunity.
Yeah. Sir, just to clarify, so we don't have any exposure to industrial grade MDF? I just wanted to clarify that.
We have exposure to interior grade or industrial grade MDF. We definitely have, but since we have a very strong brand and only one plant, our focus on that category is very low.
Okay. Sir, would it be possible to indicate, say, hypothetically, on a full year volumes, what percentage of our volumes would fall under this part?
Around 35%-40% should be in the interior.
Interior grade?
Interior and Industrial is the same thing.
Okay. That's helpful. The second question was, Manoj, you indicated that there is no pressure on the raw material side. Can you indicate how much was the resin cost increase this particular quarter? And I presume for us, what you indicated, second half margins, we are already factoring this cost increase, assuming stable prices. You indicated the margin profile. So is it possible to understand how much was the chemical or resin price increase this quarter and how do we see that going forward?
You talk about MDF, of course?
Yes.
Yeah, so in MDF, yes, the resin prices have gone up. Because of the tight competition, there is pressure on the realization as well because of certain players undercutting, and these are the minuses for H2, and the plus for H2 is the fixed cost remains the same, and we'll have a higher output, so whatever we were going to gain because of the fixed cost remaining there, we are now kind of both are getting null and void, so the loss because of the resin, not the realization, is kind of getting covered in the operating efficiency. Hence, we are commenting that we look at a 16% guidance for H2, what we had told in the beginning of the year.
Sure. So this just doesn't mean that the industry will follow suit. It is more because of our operational efficiencies you are guiding for the margins what we are indicating. Would that be fair?
Yes.
Absolutely. You are right. Absolutely.
Okay. Great. Sir, just two quick questions. Have you adopted any bundling strategies in the marketplace for ply and MDF together? That's one. And secondly, if you could give some numbers with respect to the JV for, say, second half of the fiscal and next year, what our targets are on revenue EBITDA and PAT?
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. And the second thing was on the JV portion. See, we have now achieved a run rate of around INR 4 crores per month. So for H2, for sure, we are looking at INR 25 crore plus, may go up to INR 30 crores because our dealer base is improving every month. And our sales team expansion is also taking place now. 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 INR 100 crore at the turnover.
This year, maybe it will be around INR 50 crores.
Sure. Sir, just to come back to the prior answer, what you indicated, our plants are stabilized, we are an established brand, we have distribution. Then why aren't we not going ahead with bundling strategies or incentive schemes to cross-sell ply and MDF to maximize sales? Any specific reasons, or is it something which is work in progress?
No. So first, Ritesh, on this, today also, if you see the overlap is only around 25%-30%, okay, between the two. And second, as I said, that it is not easy because when you have different sales teams, and so sometimes even the challenge faced by the sales team, so let's say if it's a plywood sales team, they themselves have six, seven, eight sub-brands to sell. At times, they are not even able to do justice to that. If they are able to do justice, they will actually be able to draw even better traction on the plywood business itself. So as I said, that now we are using the service of some consulting hours for the last 12 months or maybe 15 months.
We have been able to do a few more things in terms of measurables, in terms of making a very detailed sales plan for them, which is bringing in larger accountability and visibility with these type of things, and then there's just a quarter when we have done this, so I think the team is also getting used to it. The good part is that there is a lot of buoyancy in the team to accept this change in the culture and system, so this will give us rich dividend going forward. Once we are able to do it within the verticals, then I think the question really comes off cross verticals. We have discussed this so many times, but implementation of this is never easy.
Sure. Sir, thank you so much for the answers. I wish you all the very best. Thank you again.
Thank you.
Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.
Yes. Hello, so I just want some clarification on your guidance. So you've mentioned that you'll be able to do double-digit margin in MDF in H2 FY26 and 10% volume growth and 10% margin in H2 FY26 for plywood. Can you give an overall guidance for the complete FY26 for both the segments?
No. So let me slightly just repeat. For plywood, we are seeing 10% volume growth in H2, 10% plus volume growth in H2. Margins in H2 for sure would be better than the margin what we have delivered in H1. If the growth in plywood is higher double-digit, then there is a good chance, based on our working, that we may touch 10% margin also in H2. That is on the plywood side. On the MDF, we are looking at a higher double-digit growth, and we are very confident now because we have been able to do the capacity expansion in quarter two, and we are also saying that we will be able to deliver 16% plus margin in MDF for H2.
For the full year, if we will have to work that, we have actually not seen it that way, but maybe for the full year, MDF with this guidance may reach around 14.5%-15% margin for the full year, and in plywood, it can be around 8.5%-8.6%, which looks quite possible.
Okay. And any guidance on the volume growth for the whole year?
Yeah. So I mean, the H1 numbers are already there. So if you just add up these H2 numbers, you will be able to work out the full year guidance numbers also accordingly.
Okay. Okay.
Growth for MDF, what we are talking about, in any case, for the full year also will be higher double-digit. And the margin, as I said, can be around 14.5%-15% for the full year. Plywood full year growth, volume growth is only around, I think, 3.5% in H1.
Yeah. 3.5%.
3%. And we are talking of 10% plus. So it can be like 6.5-7% volume growth for the full year, 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%.
Understood. Thank you so much.
Yeah.
Thank you. The next question is from the line of Parth Bhavsar from Investec. Please go ahead.
Yeah. Hi, sir. So thank you for the opportunity. Sir, there is one clarification I wanted. You mentioned something in terms of revenue, EBITDA, PAT target for 2027. So can you just clarify that? You mentioned a number of INR 100 crores per month. Is that right?
No, no, no. No, no, no, no. Someone asked a question on the projection for JV for next year.
Okay.
I think that, yes, this. For that full year, next year, we are targeting now INR 100 crores.
Okay. Perfect.
This year, we should be at INR 100 crores. Yeah.
Perfect.
And then, sir, in terms of any guidance for '27, anything, if you would like to give that. Otherwise, it's okay. I believe it's too soon.
Yeah, yeah. It's too soon. And I think we are focusing right now on H2. We are very excited with whatever efforts we have taken that H2 will be definitely, definitely much better, both in terms of plywood as well as the MDF business. And once we have done that, then for sure, we'll be able to give you the guidance sometime in Q4 for next year.
Anything on CapEx? Anything on CapEx that you can guide for 2026 and 2027? Is that possible?
For this year, I can tell you that we might end up investing another INR 100 crores in different pockets because, one, we are actually doing some improvement in terms of our process in one or two plants on plywood. It's a change of process. It's an innovation where we are actually getting a total new line. Second, we are doing some level of line balancing on the plywood business again, which will call for some CapEx. Then third, our Odisha plant is also now in the construction mode. So there will be a level of investment which will go into that. And then the investment on the PVC plant also. So these four, I think, are the major elements of CapEx in H2. All these together can take around almost, plus some maintenance CapEx, may actually take around INR 100 crores-INR 110 crores of outflow.
Next year, actually, we don't have the number right now because it will depend on at what pace we are able to spend during this H2. Depending on the same, the balance amount will go to next year as CapEx, which is mainly Odisha plant for next year. Next year, the balance CapEx is Odisha plant, and I think only some maintenance CapEx, nothing much as of now.
Okay. Okay.
Sir, one last question. Sir, how is the Samet JV? How is it faring?
It's improving every day. We have been able to add dealers incrementally every month, and we are now also increasing our sales team force into the market. So we started with a very lean and thin team, and now we are adding people there also. So as I said, that if you see in quarter two, we have almost achieved a run rate of around INR 4 crores per month, and we hope that this run rate moves to around INR 5-6 crores per month in H2. So things are only looking up there.
Perfect. Perfect, sir. Those are my questions. Thank you so much.
Thank you.
Thank you. The next question is from the line of Karan Bhatelia from AMS. Please go ahead.
Yeah. Asian Markets Securities. Thank you for the opportunity. Sanidhya, any clarity on the next leg of CapEx for MDF? I mean, I'm assuming we're growing at 15% plus volume year-on. So when do we plan for a further big leg of capacity expansion for MDF? Will it be at the existing location, or will we be planning a joint plant at Odisha? Your thoughts on that?
I think [ we have all of that in our mind], and we definitely keep thinking in [different ways] for the organization. Definitely, our land and license is kind of ready. For the [Odisha], we have additional time here for another nine. We also have some space on hand, and we keep studying the [compiler], and we have to take a call sometime in five months, six months maybe, because CapEx is also going to take time, and then we stop growing in MDF and we don't take the next time, so as of now, immediately in a month or two, but yes, if the time is right, or maybe next year at some time is right, then we'll definitely announce.
We surely need the capacity based in FY28. Okay. So for that, yes, in the next five or six months, for sure, we will have to finalize the place where we want to do it and the partner who would be best in terms of our machine supply and everything. And then we'll have to get going because the way we are growing in MDF, otherwise, as Sanidhya is saying, FY28 growth will get hampered. FY27, we are comfortable, but FY28 growth will get hampered.
Right. So also some clarification on the CapEx. So INR 100 crores incremental CapEx in the second half, right? So that will give us how much for the entire year? And does that include the investment in JV?
Yes. It includes the investment in JV. I missed that. So it will include further investment in the JV also as the fifth element. We have almost spent around INR 56 crores in H1. So it will be like almost INR 155-INR 160 crores for the full year.
INR 160 crores for the full year, including the investment in JV?
The JV. Yes.
Right. Right. Right. Anything else apart from MDF and plywood? Any other product category, laminates, particle board you want to add in the Odisha CapEx?
No. No. I think we have enough. The first thing is we have to bring plywood back into the company growth clearly, and we have to at a high double digit in MDF. So these are the things we need to do in H2. And once we are done with that, we also need to take our decision on the next line for MDF, which is a rightful question raised by someone. So all these things are most important, and then only maybe at some point in time, because see, Samet is a great business, the furniture hardware, and we also need to make sure that next year how we make sure that we are able to touch around INR 100 crore turnover in that business so that the year subsequent we are able to break even and start making money. Also, in that business, the losses are today very high.
The reason because almost 45%-50% of the product is imported. So we have a phase two, phase three expansion plan. Once that happens, then the margin profile changes significantly because the products which we are importing versus the same product which we start manufacturing in India, the margin profile changes significantly. There's nothing to worry about the type of losses which we're going into at this point of time. These are all planned, and also we continue to invest heavily on the marketing and branding side. We are present in which is happening on this, and we are also doing other branding activities. So we are very much on the plan of being well in the furniture hardware business also going forward. So these are quite a bit of things already on the plan.
I think at this point of time, we are thinking of any kind of ideas, at least for the next nine to 12 months.
Great. I think that was insightful. Sir, no further questions. Any closing remark you want to make, management team?
Yes. Thank you all for taking part in this call. In case of any further clarification or queries, please feel free to reach us. Thank you.
On behalf of Asian Markets Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.