Greenply Industries Limited conducted its Q1 FY27 earnings conference call on July 24, 2026, moderated by Mr. Karan Bhatelia from Asian Markets Securities. Management participants included Mr. Sanidhya Mittal (Joint Managing Director) and Mr. Sanjiv Keshri (Chief Financial Officer).

Financial Performance

  • Consolidated revenue for Q1 FY27 stood at INR 724.9 crores, representing a 20.7% year-on-year increase
  • Consolidated core EBITDA was INR 78.3 crores with a core EBITDA margin of 10.8%, expanding 50 basis points year-on-year
  • Plywood business achieved revenue of INR 526.6 crores with 13.8% volume growth and 16% value growth year-on-year
  • Plywood realization stood at INR 265 per square meter, a 4.3% quarter-on-quarter growth
  • Plywood core EBITDA margin was 8.4% for Q1 FY27, growing 50 basis points year-on-year
  • MDF business achieved quarterly revenue of INR 195.7 crores with volumes reaching approximately 58,000 cubic meters
  • MDF business showed 32.8% value growth and 24.7% volume growth year-on-year
  • MDF realization improved to INR 33,525 per CBM, a 9.9% quarter-on-quarter growth
  • MDF margins for the quarter stood at 17.3%

Segment Performance

Plywood Business:

  • Volume growth of 13.8% year-on-year
  • Plant utilization levels were 92-93% in Q1 FY27 compared to 98-99% in previous quarter
  • Lower utilization attributed to election-related disruptions and labor availability issues in April-May

MDF Business:

  • Strong performance with 24.7% volume growth and 32.8% value growth year-on-year
  • Operating leverage supported margin expansion

Furniture and Fittings JV:

  • Achieved sales of INR 13.61 crores in Q1 FY27
  • Reported PAT loss of INR 11.48 crores with Greenply's share of loss amounting to INR 5.74 crores

Operational Updates

  • Commercial production of new flooring manufacturing line commenced successfully on July 20, 2026
  • Expansion projects including new MDF facility at Vadodara and greenfield plywood manufacturing facility in Orissa are progressing as planned
  • Commissioning timelines remain on track
  • New ContiRoll technology implementation in plywood units: two factories fully implemented, two more planned for H1 FY27

Price Realizations

  • Effective price increase currently stands at approximately 7-9% in MDF business and 3-5% in plywood business
  • Industry had taken about 15% price hike in MDF, with balance passed on through schemes

Input Cost Environment

  • Geopolitical tensions and Middle East conflict resulted in elevated imported chemical prices
  • Input costs began moderating during second half of Q1 FY27 as supply chains normalized
  • Timber prices experienced seasonal increase due to monsoon conditions affecting availability
  • Current chemical prices are rising again due to crude oil price increases

Balance Sheet & Capital Allocation

  • Consolidated net debt stood at INR 533 crores as of quarter end
  • Debt-equity ratio of 0.57x, well within guidance range of 0.7-0.75x
  • FY27 capex plan: INR 47 crores in parent standalone, INR 100 crores in GSPL, INR 300 crores in GSPPL (total ~INR 500 crores)
  • Peak debt expected to reach INR 710-730 crores by March 31, 2027

Guidance & Outlook

  • Maintain FY27 volume guidance: 10% growth in plywood, 25-30% growth in MDF
  • Confident in achieving 10% margin guidance for plywood business
  • MDF EBITDA margin expected around 16-17% sustainably, potentially increasing by 1% with new capacity
  • Target ROCE of 17-18% for MDF business in medium to long term
  • Furniture JV expected to reach zero losses by mid-next year

Capacity Utilization Targets

  • Plywood: Target to max out available capacity (previously achieved 98-99%)
  • MDF: Practical target of 80-82% utilization

New Product Launches

  • Launched "One Sheet, One Tree" sustainability campaign - long-term commitment to plant one tree for every plywood sheet supplied for infrastructure and interior projects
  • New flooring line potential peak revenue estimated at INR 75-80 crores

Raw Material Sourcing

  • Limited exposure to South Indian timber prices currently
  • Odisha facility proximity to Vizag expected to influence sourcing patterns once operational