Greenply Industries Limited announced its financial and operational performance for the quarter and half year ended 30th September 2025, during an analyst/investor conference call held on November 04, 2025. * Consolidated Financials (Q2 FY26): * Revenue: ₹688.6 crores, a growth of 7.5% year-on-year. * Core EBITDA: ₹56.8 crores, with a margin of 8.2% (compared to 9% in the corresponding quarter). * Consolidated Financials (H1 FY26): * Revenue: ₹1,289.4 crores, a growth of 5.3% year-on-year. * EBITDA: ₹118.4 crores, a growth of 2.5% year-on-year, with a margin of 9.2%. * Profit After Tax (PAT): ₹44.4 crores. * Plywood Business (H1 FY26): * Revenue: ₹995.5 crores, a growth of 3.1% year-on-year. * Volume growth: 2.5% year-on-year. * Core EBITDA margin: 8.1%. For H2 FY26, the company expects 10%+ volume growth and better margins than H1, potentially exceeding 10% if growth is higher double-digit. Full year FY26 margin guidance is around 8.5%. * MDF Business (Q2 FY26): * Revenue: ₹146.8 crores, a growth of 16.1% year-on-year. * Volume: 47,018 CBM, a growth of 15.9% year-on-year. * Manufacturing capacity expanded from 800 CBM per day to 1,000 CBM per day. * Margins were moderately impacted in Q2 due to reduction in finished goods inventory, liquidation of old inventory at higher discounts, and outsourced material consumption. However, the company is confident of a strong rebound in H2, expecting double-digit volume growth and 16%+ margins. Full year FY26 margin guidance is around 14.5%-15%. * Furniture and Fitting Joint Venture: Achieved sales of ₹11.4 crores in Q2 FY26, reporting a PAT loss of ₹11.8 crores (Greenply's share: ₹5.9 crores). The company targets H2 FY26 sales of ₹25-30 crores and FY27 sales of ₹100 crores. * Net Debt: Stood at ₹510 crores at the end of Q2, with expectations to reduce with inventory liquidation, aiming for a debt-equity ratio of 0.5x despite further capex. * BIS Implementation: Management noted positive initial signs, including a significant reduction in imports (3-4% of last year's numbers), benefiting organized players. * Marketing Strategy: Expanded communication to the value segment with 'Ecotec' and commenced advertising for the MDF category. * HDF Flooring: Trials are ongoing, with commercial sales expected to start in early December 2025. This involves a very small capital expenditure. * Capex: H2 FY26 capex is estimated at around ₹100-110 crores for plywood process improvements, line balancing, the Odisha plant, and the PVC plant. The balance for the Odisha plant will be invested in FY27. * Future MDF Capacity: The company anticipates needing additional MDF capacity by FY28 and plans to finalize the location and partner within the next 5-6 months.
