Century Plyboards ends FY26 with record Q4 revenue, margin lift and a busy capex agenda

Century Plyboards (India) Limited closed FY26 with its highest ever quarterly revenue. Consolidated total income in Q4 FY26 stood at Rs 1,492 crore, up 24.5% year on year and 10.5% quarter on quarter. For the full year, consolidated total income rose 19.2% to Rs 5,397 crore.

Profitability also improved, but with one important caveat. Forex losses were meaningful in FY26, so management repeatedly highlighted operating performance excluding forex. On that basis, EBITDA margin improved to 13.7% in Q4 FY26 (versus 12.6% in Q3 and 12.1% in Q4 FY25). For FY26, EBITDA margin excluding forex improved to 13.0% from 11.1% in FY25. PAT grew 44% year on year to Rs 268 crore.

The broad picture is one of healthy demand across product lines, rising capacity utilization in newer assets, and better operating leverage. At the same time, higher leverage, a longer working capital cycle, and volatility in imported inputs and forex remain key variables.

FY26 snapshot: growth is strong, forex is the swing factor

Century Plyboards reported consolidated EBITDA of Rs 661 crore in FY26. However, forex losses were reported within operating and finance lines, and total forex loss across EBITDA and borrowing cost was Rs 57 crore in FY26. When that is excluded, EBITDA rises to about Rs 702 crore, which is what management used to explain margin improvement.

Finance costs have moved up sharply in the last two years, reflecting the capex cycle and higher debt. Interest expense increased to Rs 97 crore in FY26, and total borrowing cost including forex treated as borrowing cost was Rs 113 crore. Interest cover in the investor presentation stood at 4.15 for FY26.

The balance sheet shows the capex build-out clearly. Total debt rose to Rs 1,531 crore in FY26, while net worth increased to Rs 2,630 crore. Fixed assets rose sharply to Rs 2,813 crore, and capital work in progress moderated to Rs 180 crore after peaking in FY25.

Segment performance: Plywood steady, laminates rebound, MDF scales, particle board ramps

The segment mix remains anchored by plywood. Based on segment total income tables in the presentation, plywood contributed about Rs 2,915 crore in FY26, or roughly 54% of consolidated total income. MDF contributed about Rs 1,284 crore (about 24%), laminates about Rs 743 crore (about 14%), and particle board about Rs 200 crore (about 4%).

Plywood: demand holds, utilization near peak, expansion cycle restarts

Plywood continues to be the most profitable and stable business in the portfolio. Q4 FY26 plywood total income rose 17.9% year on year to Rs 791 crore, while EBITDA margin excluding forex was stated at 16.1%. For FY26, plywood total income increased 15.6% to Rs 2,915 crore, with EBITDA margin excluding forex at 15.2%.

In the concall, management indicated that plywood capacity utilization in Q4 was about 99% and described the system as operating practically at full utilization. That capacity tightness is shaping capital allocation. Management spoke about increasing plywood capacity by about 30% within the year, combining brownfield expansions and commissioning of a new Hoshiarpur plant around October.

Management also reiterated a quality-driven stance on outsourcing. It said outsourcing in plywood has not worked well from a quality standpoint and the intent is to move toward fully in-house production. It specifically referenced bringing outsourced Sainik MR volumes back in-house once expansion capacity becomes available.

Laminates: a turnaround year after two subdued years

The laminates segment has been a drag for several quarters, but FY26 showed a clear step-up. Total income increased 13.9% year on year to Rs 743 crore. EBITDA margin excluding forex improved to 8.5% from 5.2% in FY25. Q4 FY26 EBITDA margin excluding forex was stated at 10.3%, reflecting both better utilization and improved mix.

Management attributed the earlier stagnation partly to internal go-to-market changes that did not work and partly to product mix shifts in domestic and export markets. Corrective actions included adjustments in leadership and GTM strategy, and the addition of presses better aligned with export demand.

MDF: utilization rising, debottlenecking underway, margins impacted by chemicals

MDF remains one of the fastest-growing lines. FY26 total income rose 25.6% to Rs 1,284 crore, and the EBITDA margin excluding forex improved to 12.7% from 10.1% in FY25. Q4 FY26 total income was Rs 356 crore, up 31.5% year on year.

On the call, management said MDF utilization is currently around 80% to 85% and explained that rated utilization can push toward 85% to 90% depending on mix. It also described an ongoing brownfield debottlenecking in the South plant intended to add about 60,000 to 70,000 CBM per year, expected to complete by the end of Q1.

The near-term pressure point is chemical and resin inflation linked to geopolitical disruption. Management said the industry took around a 15% price increase, though it is still early to see how much of the hike sticks. It also described Q4 margin softness as driven by chemical availability disruptions and some one-off brand spending.

Particle Board: fast growth but profitability still weak

Particle Board was the fastest-growing segment on revenue, but profitability remains the issue. Q4 FY26 total income grew 108.3% year on year to Rs 67.9 crore. For FY26, total income increased 38.2% to Rs 200 crore.

However, the segment reported negative EBITDA for FY26 in the financial table (with forex included), and segment profit was also negative. Management positioned this as a ramp-up phase and said it expects operating performance to improve as utilization rises.

It also clarified that the old multi-daylight particle board plant has been shut and will likely be scrapped, with no plans to revive it. This points to a focus on modern continuous line capacity and a willingness to exit older, less efficient assets.

Capex and new verticals: plywood priority, ports begin operations

The capex table in the investor presentation shows large multi-year investments across MDF, laminates, particle board, PVC board and infrastructure. A key disclosure is that the Andhra Pradesh MDF and laminate greenfield projects are undertaken through Century Panels Ltd, a 100% subsidiary.

In the concall, management framed the next phase as a balancing act. The CFO emphasized return on capital discipline and said the company wants to sweat assets created over the last three years. It also stated that while working capital debt can rise with growth, long-term debt is not expected to exceed 1:1 EBITDA.

Another strategic development is Century Ports. Management said Century Ports commenced commercial operations in Q4 FY26 at the rejuvenated Khidderpore Docks in Kolkata and expects the business to be cash positive in Q1 FY27. It also clarified that the port will be run as a separate profit center, with no direct cost savings booked into the manufacturing businesses.

What investors should track next

First, the sustainability of margin gains depends heavily on input costs and the ability to hold pricing. Management described the environment as fluid and chose not to give FY27 guidance due to geopolitical uncertainty and chemical supply chain disruptions.

Second, leverage and working capital require attention. Total debt is Rs 1,531 crore and the cash conversion cycle stands at 81 days. Interest cover has compressed meaningfully compared to earlier years.

Third, the capex calendar matters. MDF debottlenecking is expected to complete by end of Q1 FY27, plywood capacity additions are planned within FY27, and Century Ports has only just started operations.

Overall, FY26 shows that Century Plyboards is exiting a heavy capex period with improving utilization and better operating leverage. The next year will test how well it can convert that scale into steadier returns while managing forex volatility, input inflation, and balance sheet discipline.