Greenpanel Industries Limited held its Q2 FY27 earnings conference call on November 2, 2026, at 5:00 P.M. to discuss unaudited financial results for the quarter and half year ended September 30, 2026. The call was attended by Mr. Shobhan Mittal (Managing Director) and Mr. Himanshu Jindal (CFO).

Financial Performance

  • Q2 FY27 total revenue was INR407 crore, representing 4.6% year-on-year growth and 16.4% sequential growth over Q1 FY27
  • H1 FY27 total revenues grew 6.3% year-on-year to INR757 crore
  • Consolidated operating EBITDA margin for Q2 FY27 was 7.5%, compared to 9.6% in Q1 FY27 and 10.2% in the previous year
  • H1 FY27 operating EBITDA margin improved by 100 basis points to 8.4%
  • Net debt reduced to INR133 crore
  • Working capital cycle improved by 5 days compared to June 30, 2026

Volume Performance

  • Total MDF volume degrew by 3.4% year-on-year in Q2 FY27, but grew 23% sequentially versus Q1 FY27
  • Retail MDF sales achieved highest ever quarterly volume for Greenpanel, growing 17% year-on-year
  • Plywood sales grew 8.4% year-on-year and 16.5% sequentially versus Q1 FY27
  • OEM segment volumes declined significantly, representing only 15% of domestic volume in H1 FY27 compared to 25-30% last year
  • Export order pipeline as of October 2026 stood at 13,000 cubic meters

Operational Highlights

  • Chemical costs moderated sequentially by 5%, but full impact not visible in Q2 due to higher-cost opening inventory from Q1
  • Price reductions were implemented to counter competition and gain market share
  • Line 3 at Andhra plant is operational providing organic growth capacity
  • Value-added products represented 43-44% of volume and 55% of value in H1 FY27
  • Current industry capacity utilization estimated at 70%
  • Industry expected to add 800,000-900,000 cubic meters capacity over next two years

Market Conditions

  • Furniture Quality Control Order 2025 implementation expected to support wood panel demand
  • Geopolitical conditions in Middle East impacting container availability and sea freight costs
  • Sea freight costs increased significantly, making imports less feasible for domestic markets
  • Raw material prices have stabilized with industry moving to multiple species beyond eucalyptus
  • Multi-daylight press lines becoming unviable due to current pricing conditions

Management Guidance

  • Targeting mid-teen MDF volume growth for full year FY27
  • Expecting margin expansion in H2 from operating leverage, cost efficiencies, and chemical cost moderation
  • Aiming to recover H1 shortfall in OEM and export volumes during balance half of the year
  • Targeting return to 20-25% OEM share of domestic volume (normalized levels)
  • Expecting industry to continue 15-17% CAGR for MDF demand
  • Net asset turn target of 1.3x to 1.5x at capacity

Regional and Competitive Landscape

  • 85% of exports go to Middle East markets
  • Southeast Asia (Thailand, Vietnam) remains main source of imports
  • New competition emerging in South India and Gujarat
  • Company maintains premium pricing versus Greenply and Century on like-to-like products
  • Current market share estimated at 23-25% domestically

Q&A Highlights

  • Management confident about volume recovery in Q3/Q4 FY27
  • Margin improvement expected from better fixed cost absorption and volume growth
  • Export realizations range between $200-220 per cubic meter FOB for basic products
  • EPCG benefit for quarter was approximately INR4 crore
  • Replacement cost for new capacity estimated at INR800-850 crore for 250,000 CBM plant