Greenpanel revenue rose 4.6% as Q2 operating EBITDA fell 23.5%

Greenpanel Industries Limited reported Q2FY27 revenue of Rs 407.3 crore, up 4.6% year on year, but operating EBITDA fell 23.5% to Rs 30.4 crore and the operating EBITDA margin declined to 7.5% from 10.2%. Higher sales, including a sequential recovery in MDF volumes and exports, did not offset lower MDF pricing versus Q1FY27 and higher expenses.

How did Greenpanel’s Q2FY27 earnings change?

Greenpanel’s revenue increased to Rs 407.3 crore in Q2FY27 from Rs 389.4 crore in Q2FY26 and Rs 349.9 crore in Q1FY27, representing 4.6% year-on-year and 16.4% sequential growth. First-half revenue was Rs 757.2 crore, up 6.3% from Rs 712.0 crore in 1HFY26. Operating EBITDA, or earnings before interest, tax, depreciation and amortisation excluding specified foreign-exchange and other one-off items, fell to Rs 30.4 crore from Rs 39.7 crore a year earlier.

The operating EBITDA margin declined by 2.7 percentage points year on year and 2.1 percentage points from Q1FY27. Raw-material cost rose to Rs 210.9 crore, or 51.8% of revenue, from 47.3% in Q1FY27, while other expenses increased to Rs 172.9 crore from Rs 153.5 crore. Reported EBITDA was Rs 30.3 crore because the foreign-exchange and other exception was Rs 0.1 crore, compared with Rs 11.9 crore in Q2FY26.

What changed in Greenpanel’s MDF sales and pricing?

Greenpanel’s total medium-density fibreboard, or MDF, revenue rose 3.6% year on year to Rs 367 crore in Q2FY27, while total volume declined 3.4% to 123 thousand cubic metres. The sequential comparison improved: volume increased 23.0% from 100 thousand cubic metres in Q1FY27 and revenue rose 16.0% from Rs 317 crore. Total MDF realisation was Rs 29,942 per cubic metre, up 7.2% from Rs 27,927 per cubic metre a year earlier but down 5.7% from Rs 31,758 per cubic metre in Q1FY27.

Domestic MDF volume was 113 thousand cubic metres, broadly unchanged from Q2FY26 and up from 100 thousand cubic metres in Q1FY27. Domestic realisation was Rs 29,608 per cubic metre, 3.6% above Q2FY26 but 6.8% below the preceding quarter, while domestic revenue rose to Rs 335 crore. The MDF operating EBITDA margin was 7.8%, compared with 10.7% in Q2FY26 and 10.3% in Q1FY27.

Exports resumed after no reported sales in Q1FY27, generating Rs 32 crore of MDF revenue on volume of 10 thousand cubic metres in Q2FY27. Export volume remained below 14 thousand cubic metres in Q2FY26, although export realisation rose 49.7% year on year to Rs 33,905 per cubic metre. Management said the export order pipeline on October 1 exceeded total Q2FY27 export sales, despite a further increase in sea freight.

Which segments and capacity measures shaped Greenpanel’s volumes?

Greenpanel’s retail MDF volume grew 17% year on year in Q2FY27 and 19% in 1HFY27, and the presentation described Q2FY27 retail sales as the company’s highest ever. Plywood volume increased 8% in the quarter and 9% in the half year. In contrast, original equipment manufacturer, or OEM, MDF volume declined 39% in Q2FY27 and 30% in 1HFY27, following a 14% decline in Q1FY27.

Management said pricing realignment was producing monthly OEM volume recovery, but it did not disclose monthly sales data or an OEM target. Plywood revenue reached Rs 40 crore in Q2FY27, up from Rs 35 crore a year earlier and Rs 33 crore in Q1FY27. Plywood volume was 1,514 thousand square metres, realisation was Rs 263 per square metre and EBITDA margin was 4.7%, compared with 4.6% in Q2FY26.

MDF capacity utilisation increased to 55% in Q2FY27 from 53% in Q2FY26 and 51% in Q1FY27, while plywood utilisation was 51%, versus 53% a year earlier. Greenpanel said operations had commenced on the third line at its Andhra facility, taking MDF capacity to 675,000 cubic metres; plywood capacity was 9 million square metres. Management’s stated strategy is to use available capacity to increase volumes and improve operating efficiency to address input-price escalation.

What does Greenpanel’s September 2026 financial position show?

Greenpanel reported net debt of Rs 133 crore at September 30, 2026, down from Rs 156 crore at March 31, 2026 and Rs 173 crore at September 30, 2025. Long-term foreign-currency borrowings were Rs 274 crore and Indian-rupee borrowings were Rs 42 crore, against cash and cash equivalents of Rs 183 crore. The company stated that cash and cash equivalents include fixed deposits.

The working-capital cycle was 37 days at September 30, 2026, down from 42 days at June 30, 2026 but above 30 days a year earlier. Days sales outstanding increased to 25 from 19 during the quarter, while days inventory outstanding declined to 50 from 62. Days payable outstanding were negative 38, compared with negative 39 at June 30, 2026, under the company’s sales-based calculation.

Net worth was Rs 1,350.3 crore at September 30, 2026, compared with Rs 1,355.9 crore at March 31, 2026. Total borrowings declined to Rs 316.3 crore from Rs 352.6 crore, while inventories increased to Rs 220.8 crore from Rs 189.3 crore and trade receivables rose to Rs 110.2 crore from Rs 88.3 crore. ICRA and CARE reaffirmed Greenpanel’s A+ rating for working-capital facilities during Q2FY27.

Conclusion

Greenpanel’s Q2FY27 performance combined 4.6% revenue growth with a 23.5% decline in operating EBITDA. Sequential MDF volume recovery, resumed exports and higher plywood sales lifted revenue to Rs 407.3 crore, but the lower MDF realisation versus Q1FY27, a 4.5-percentage-point sequential decline in gross margin and higher other expenses reduced operating EBITDA margin to 7.5%.

The next reported indicators to watch are OEM volume after management’s pricing realignment, conversion of the export pipeline disclosed on October 1 and utilisation of the 675,000-cubic-metre MDF capacity. Management expects domestic MDF demand to grow at a 15% to 17% compound annual growth rate and says moderating capacity additions, higher import costs and the Furniture (Quality Control) Order, 2025 could support industry demand and balance.