Greenply Industries Limited Q2 FY27 Earnings Conference Call

Financial Performance Highlights

Q2 FY27 Consolidated Results:

  • Revenue: INR799.7 crore, representing 16.1% year-on-year growth
  • Core EBITDA: INR89.2 crore
  • Core EBITDA Margin: 11.2%, expanding 300 basis points YoY

H1 FY27 Consolidated Results:

  • Revenue: INR1,524.6 crore, representing 18.2% year-on-year growth
  • Core EBITDA: INR167.5 crore
  • Core EBITDA Margin: 11.0%, expanding 180 basis points YoY

Segment-wise Performance

Plywood Segment (Q2 FY27):

  • Volume Growth: 6.1% YoY
  • Revenue: INR625.7 crore, 15.5% value growth YoY
  • Realization: INR264 per square meter
  • Core EBITDA Margin: 10.05%, expanding 180 bps YoY and 160 bps QoQ

Plywood Segment (H1 FY27):

  • Volume Growth: 9.2% YoY
  • Revenue: INR1,152.3 crore, 15.7% value growth YoY
  • Realization: INR264 per square meter
  • Core EBITDA Margin: 9.31%, expanding 120 bps YoY

MDF Segment (Q2 FY27):

  • Revenue: INR173.9 crore, 18.4% growth YoY
  • Volume: 54,605 CBM, 16.1% growth YoY
  • Realization: INR31,816 per CBM
  • EBITDA Margin: 15.2%

MDF Segment (H1 FY27):

  • Revenue: INR369.6 crore, 25.6% growth YoY
  • Volume: 112,411 CBM, 20.4% growth YoY
  • Realization: INR32,694 per CBM
  • EBITDA Margin: 16.3%, expanding 350 bps YoY

Capacity Expansion and Capex

Plywood Capacity Expansion:

  • Location: Sandila, Lucknow (existing location)
  • New Capacity: 15 million square meters
  • Budgeted Capex: INR125 crore
  • Funding: Mix of debt and equity
  • Expected Commissioning: Q4 FY28
  • Revenue Potential at Full Utilization: INR320-340 crore
  • Post-expansion Total Plywood Capacity: 81.3 million MSM

Other Expansion Projects:

  • New MDF facility at Vadodara: Expected commissioning in Q2 FY28
  • New greenfield manufacturing facility at Odisha: Expected commissioning in Q4 FY27
  • HDF flooring line: Commenced commercial production in July 2026

ESG and Sustainability Initiatives

Agroforestry Program:

  • VCS-validated grouped project titled "Agroforestry Plantations in the Country by Greenply"
  • First phase coverage: Over 2,300 hectares across Gujarat and Nagaland
  • Farmers benefited: 505 local farmers through sapling distribution, training, and technical support
  • Carbon credits allotted: 256,688 credits officially allotted to Greenply
  • Future expansion: Second stage to expand to 12,000 hectares across Gujarat and Nagaland
  • Carbon credit sales: Sample credit sold at USD15 per credit

Joint Venture Performance

Furniture Fittings JV:

  • Q2 FY27 Sales: INR14.08 crore
  • H1 FY27 Sales: INR27.70 crore
  • Q2 FY27 PAT Loss: INR12.6 crore (Greenply share: INR6.3 crore)
  • H1 FY27 PAT Loss: INR24.2 crore (Greenply share: INR12.1 crore)
  • Greenply stopped funding losses from Q1 FY27
  • Planned dilution: Greenply to reduce stake to 19% by January 5, 2027

Balance Sheet Position

As of Q2 FY27 End:

  • Consolidated Net Debt: INR544 crore
  • Debt-to-Equity Ratio: 0.56x
  • Well within guided range of 0.7x to 0.75x

Guidance and Outlook

Plywood Segment: Maintain existing guidance

MDF Segment (Revised Guidance):

  • Full-year volume growth: Approximately 20%
  • Core EBITDA margins: 15% to 16% range
  • EBITDA per CBM: Maintain above INR5,000

Operational Updates

Product Innovations:

  • Introduced TermiVax: Patented nanotechnology-based anti-termite solution
  • Strengthened Greenply Gold with 11-year fully covered plus plan
  • Successful participation in MATECIA 2026 across product categories

Raw Material Costs:

  • Timber prices: Stable with no significant increases expected
  • Chemical costs: Permanent 7-8% increase sustained

Market Dynamics:

  • MDF competitive intensity remains high with price rollbacks
  • Unorganized players facing pressure, expected to shut down in next 6-12 months
  • New capacity additions: Action TESA started plant in south, Elixrr starting soon

Future Business Initiatives

Chipboard Manufacturing:

  • Planning entry with multi-delight lines complementing MDF
  • Capex per line: Not more than INR100 crore
  • Target output: 250-300 cubic meters
  • Expected asset turn: 1:2
  • Timeline: Next year or next to next year

Pre-lam Plywood:

  • Commercial full-scale production starting November 2026
  • Targeting ready-made furniture segment

Management Commentary

Capacity constraints in plywood segment until Odisha and Sandila expansions come online. Focus on premium product mix and margin improvement rather than volume growth in current capacity scenario. Confident in maintaining MDF margins through operational efficiencies and better product mix despite competitive pressures. Agroforestry program focused on long-term raw material sustainability rather than immediate monetization benefits.