Greenply ends FY2026 with a strong Q4 margin rebound, MDF leads the momentum

Greenply Industries closed Q4 FY2026 with its highest ever consolidated quarterly revenue of INR776.2 crores, up 19.6% year on year. Core EBITDA rose to INR93.2 crores and the core EBITDA margin expanded to 12.0%, a sharp recovery from 8.7% in Q3. Reported PAT for the quarter came in at INR31.0 crores.

For FY2026, consolidated revenue was INR2,739.0 crores, up 10.1%. Core EBITDA increased 13.8% to INR270.5 crores, with the margin improving to 9.9% from 9.6% in FY2025. While full-year PAT before income tax refund rose to INR89.8 crores, reported results were affected by exceptional items and losses from equity-accounted investees.

The quarter’s tone was set by two themes: a volume-led operating leverage story in MDF, and a gradual improvement in plywood profitability backed by process changes and a healthier mix of own manufacturing versus trading.

Consolidated performance: revenue growth with a sharp Q4 margin step-up

In Q4 FY2026, Greenply delivered a strong margin step-up on the back of higher volumes and improved operating leverage. Gross profit in Q4 was INR322 crores, with gross margin at 41.8%. Core EBITDA margin improved 330 basis points sequentially to 12.0%.

The company also reported exceptional items of INR15.2 crores in Q4, primarily linked to provisions and impairments in its Dubai entity, GMEL. Management described this as a conservative, one-time clean-up and stated that all potential liabilities relating to invested equity, corporate guarantees, and advances have been fully provided for.

Balance sheet metrics stayed within management’s guided range despite ongoing capex. At March 2026, net debt stood at INR461 crores, and net debt to equity was 0.52. Consolidated working capital days were 43, improving from 47 in December 2025.

Segment review: plywood steady, MDF accelerates

Plywood business: volume-led growth with improving profitability

The India plywood business (standalone plus subsidiaries) posted Q4 revenue of INR588.5 crores, up 14.6% year on year, with volume growth of 15.6%. Core EBITDA margin improved to 10.4% in Q4, up 120 basis points year on year.

For FY2026, plywood segment revenue was INR2,105.7 crores, up 7.5%, with volume growth of 8.3%. Core EBITDA rose 11.7% to INR185.4 crores, and the EBITDA margin improved to 8.8%.

A key operational lever highlighted was the sales mix between own manufacturing and trading. In FY2026, manufacturing contributed 63% of volumes and 69% of value, while trading contributed 37% of volumes and 31% of value. Management linked this mix to healthier returns.

MDF business: record quarter, operating leverage drives margins

MDF delivered the standout growth. Q4 FY2026 revenue rose 39.6% to INR189.4 crores, with volume up 45.3% to 62,021 CBM. Core EBITDA margin expanded to 17.0% in Q4, supported by higher utilization and operating leverage.

For FY2026, MDF revenue grew 19.9% to INR635.6 crores, with EBITDA margin at 13.4%. Management attributed past volatility in MDF margins partly to line extension disruptions in the middle quarters, and indicated that Q4 represents a normalized base.

Within MDF, FY2026 revenue included INR522.6 crores from MDF boards and INR112.2 crores from pre-lam boards.

Costs, pricing, and capex: navigating volatility while building capacity

Management flagged the impact of geopolitical disruption on imported chemicals and logistics. Chemical prices rose by over 50% in the early part of the quarter, and logistics costs were pressured by elevated fuel charges and war risk insurance premiums. This was particularly relevant for MDF, where chemicals were cited as nearly 30% of raw material cost.

To protect margins, the company implemented price increases effective April 2026. Management stated MDF prices were raised by 5% and 10% (total 15%), and plywood price increases were in the range of 4% to 5% depending on brand and market. The company is also evaluating domestic sourcing options for chemicals to reduce import dependence.

Capex remains a central part of Greenply’s strategy. Management gave progress updates across multiple projects:

• PVC and WPC plant commercial production commenced from April 2026, with installed capacity of 6 million kgs for doors and 3 million kgs for door frames. Management indicated peak revenue potential of about INR75 to INR80 crores from this line.
• A new MDF facility is under construction, with key machinery orders placed. The MDF capex was guided at INR425 crores, with about INR300 crores expected in FY2027 and about INR125 crores in the next year.
• Odisha plywood expansion was discussed with a total project cost of around INR130 crores.
• Plywood manufacturing upgrades using a ContiRoll approach are being rolled out. Two facilities have implemented the process, and two more are expected to implement it during FY2027. Management linked this initiative to improved quality and potential cost benefits, with a likely benefit in H2 once implemented across plants.

On leverage, management guided that debt to equity could peak at around 0.7 to 0.72 during the capex cycle and return to around 0.5 to 0.6 as cash flows scale.

Takeaways

Greenply’s Q4 FY2026 performance showed a clear recovery in profitability, led by MDF operating leverage and supported by improved plywood margins. The company’s near-term execution focus is on sustaining volume growth while protecting margins through pricing actions and supply chain optimization.

Risks remain visible, including ongoing losses from equity-accounted investees such as Greenply Samet, forex impacts, exceptional items linked to overseas exposure, and uncertainty around the income tax proceeding. Still, management’s commentary suggested confidence that the Q4 margin profile is sustainable, supported by price hikes implemented in April and operational normalization.

With large capex underway across MDF and adjacent categories, FY2027 is positioned as a scale-up year where balance sheet discipline and execution on commissioning timelines will be key to sustaining investor confidence.