Financial Performance Highlights

  • Total Revenue: ₹349.9 Crores (compared to ₹391.4 Cr in Q4FY26 and ₹322.6 Cr in Q1FY26)
  • Gross Margin: 52.7%, representing an improvement of 570 basis points year-over-year
  • Operating EBITDA: ₹33.5 Crores (9.6% of total sales), increased by 157.3% year-over-year from ₹13.0 Cr in Q1FY26
  • Reported EBITDA: ₹32.5 Crores (9.3% margin)
  • Profit Before Tax (PBT): ₹2.1 Crores
  • Profit After Tax (PAT): ₹1.2 Crores
  • Raw Material Cost: ₹165.4 Crores (47.3% of revenue)
  • Other Expenses: ₹153.5 Crores
  • Other Income: ₹2.5 Crores (down 72.6% YoY, includes nil EPCG income vs. ₹5.1 Cr in Q1FY26)

Segment Performance - MDF (Medium Density Fiberboard)

  • Net Sales: ₹316.8 Crores, up 8.8% YoY
  • Operating EBITDA Margin: 10.3%, up 590 bps YoY from 4.4%
  • Annual Capacity: 8,91,000 CBM (unchanged)
  • Production: 1,13,394 CBM, up 8.0% YoY
  • Domestic Sales Volume: 99,747 CBM, up 12.0% YoY
  • Export Sales Volume: 0 CBM (down from 13,060 CBM in Q1FY26 due to ongoing war in Middle East since March 2026)
  • Total Sales Volume: 99,747 CBM, down 2.3% YoY
  • Capacity Utilization: 51%, up from 47% YoY
  • Blended Realization: ₹31,758/CBM, up 11.4% YoY
  • Domestic Realization: ₹31,758/CBM, up 7.4% YoY
  • Export Realization: Not applicable (zero exports)

Segment Performance - Plywood

  • Net Sales: ₹33.2 Crores, up 5.5% YoY
  • EBITDA Margin: 2.7%, up 210 bps YoY from 0.6%
  • Annual Capacity: 9 Million SqM (unchanged)
  • Production: 1.3 Million SqM, up 35.0% YoY
  • Sales Volume: 1.3 Million SqM, up 10.4% YoY
  • Capacity Utilization: 56%, up from 42% YoY
  • Average Realization: ₹255/SqM, down 4.4% YoY due to product mix changes

Working Capital and Debt Profile

  • Cash Conversion Cycle (CCC): 42 days (increased from 38 days as of March 31, 2026)
  • Net Debt: ₹141 Crores, reduced by approximately ₹15 Crores from ₹156 Crores as of March 31, 2026
  • Year-ago Comparison: Net debt was ₹233 Crores as of June 30, 2025
  • Credit Rating: Working capital facilities reaffirmed at A+ by ICRA
  • Leverage and liquidity described as "comfortable to support growth"

Key Factors Driving Performance

Gross margin improvement and Operating EBITDA growth attributed to:

  • Timely implementation of price hikes following significant escalation in chemical costs
  • Change in distribution salience: lower OEM volumes and zero exports
  • Lower timber costs on year-over-year basis
  • Improvement in production efficiency (power & fuel)
  • Available low-cost finished goods and semi-finished goods inventory from Q4

Exceptional Items

  • Operating EBITDA excludes FX loss on currency movement on Euro currency borrowings for new MDF plant
  • Q1FY26 included ₹25.5 Cr exceptional FX loss, Q1FY27 included ₹1.0 Cr exceptional FX loss

Marketing and Brand Initiatives

Company strengthened brand presence through:

  • National television reach across 6 news channels with high-impact integrations
  • Industry print leadership
  • Participation in trade exhibitions including Bharat Buildcon 2026
  • 120+ PR activities generating widespread media coverage
  • Trade engagement: 2,000+ dealer brandings, 200+ in-shop brandings, 50,000 sq ft wall paintings, 100+ wall wraps, 15+ hoardings, 100+ carpenter & contractor meets
  • Digital initiatives: New website launch generating 25,000+ visits, 1.7 lakh search impressions, 59,000+ page views
  • Social media growth across platforms with significant follower increases since March 2026

Awards and Recognition

  • Recognized as one of the Most Trusted Brands 2026-27 by Team Marksmen Daily
  • Featured by Silicon Homes Magazine among Top 10 Wooden Flooring Brands

Forward-Looking Statements Disclaimer

The presentation contains forward-looking statements subject to risks including competitive pressures, legislative developments, macroeconomic trends, currency fluctuations, market conditions, approval delays, technical developments, litigation, and adverse publicity.