ARCHIDPLY - Archidply Inds.

📊 NSE: ARCHIDPLY 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:28

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income for H1 FY26 grew 268% YoY to INR 48.94 Cr from INR 13.30 Cr. Standalone revenue (Plywood/Laminates) grew 243% YoY to INR 23.87 Cr, while the MDF subsidiary (AIPL) contributed INR 25.07 Cr, representing a 295% YoY increase from its H1 FY25 base of INR 6.34 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains geographical diversity through an established national dealership network.

Profitability Margins

Consolidated PAT margin for H1 FY26 was 1.95% (INR 0.95 Cr profit on INR 48.94 Cr income), recovering from a net loss in H1 FY25. Standalone PAT margin for H1 FY26 was 0.84% (INR 0.20 Cr profit on INR 23.87 Cr income). Full-year FY25 group performance was impacted by PAT losses and a 47.8% drop in cash accruals to INR 6 Cr.

EBITDA Margin

Not explicitly disclosed, but operating margins were reported as affected by lower realizations in the MDF segment and high fixed costs associated with the new capacity at Archidpanel Industries Pvt Ltd (AIPL).

Capital Expenditure

The company recently completed a major expansion into the MDF/HDF segment via its subsidiary AIPL, which holds total assets of INR 187.09 Cr. A rights issue of INR 24.91 Cr was allotted to AIPL in FY25 to support this project.

Credit Rating & Borrowing

Assigned IVR BBB-; Stable rating by Infomerics for INR 110.17 Cr of bank facilities. Consolidated interest costs for H1 FY26 were INR 11.19 Cr, reflecting the high debt burden from the MDF expansion.

⚙️ Operational Drivers

Raw Materials

Wood, Timber, Chemicals, and Resins used for Plywood, Laminates, and MDF production.

Import Sources

Not specifically named by country, but the company had a foreign exchange outgo of INR 10.97 Cr in FY25 for raw materials, stores, and capital goods.

Capacity Expansion

Current installed capacity includes 48,00,000 sheets per annum for laminates and 68,50,000 CBM per year for plywood. The new MDF/HDF unit under AIPL is currently in the ramp-up phase.

Raw Material Costs

Standalone raw material and stores outgo was INR 10.97 Cr in FY25. Profitability is highly susceptible to fluctuations in raw material prices, which are a key rating sensitivity.

Manufacturing Efficiency

Manufacturing units are located in Rudrapur, Uttarakhand, providing proximity to raw material sources. However, bank limit utilization is high at approximately 92%, indicating stretched working capital.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The primary growth strategy is the ramping up of operations at the newly commenced MDF/HDF boards unit (AIPL). Management expects this to drive scale and improve overall group profitability by offsetting high fixed costs through higher capacity utilization.

Products & Services

Plywood, Laminates, MDF (Medium Density Fiberboard), HDF (High Density Fiberboard), Clads, Doors, and EDHMR.

Brand Portfolio

Archidply, Archidpanel.

New Products/Services

MDF and HDF boards launched via the Archidpanel subsidiary.

Market Expansion

Expansion is focused on the MDF/HDF market to complement the existing plywood and laminate business, leveraging the established national distribution network.

Strategic Alliances

The company maintains a 100% subsidiary, Archidpanel Industries Private Limited (AIPL), supported by corporate guarantees and a rights issue of INR 24.91 Cr.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward MDF/HDF from traditional plywood. The sector is currently characterized by intense competition and pricing pressure.

Competitive Landscape

Faces intense competition from both organized and unorganized players in the plywood, laminate, and MDF sectors.

Competitive Moat

Moat is based on the 40+ years of experience of promoter Mr. Deen Dayal Daga and an established dealership network, though this is challenged by the commodity nature of the products and intense competition.

Macro Economic Sensitivity

Highly sensitive to raw material price fluctuations and general construction/real estate industry demand.

Geopolitical Risks

Not specifically detailed, though raw material imports are subject to global trade dynamics.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental pollution norms and manufacturing standards for wood-based products.

Taxation Policy Impact

Standalone current tax liability was INR 0.07 Cr as of September 30, 2025.

Legal Contingencies

Secretarial audits for AIL and AIPL were completed for FY25; no specific high-value pending court cases or case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Liquidity is a major concern as cash accruals (INR 6 Cr in FY25) are tightly matched or exceeded by debt obligations (INR 17.7 Cr in FY26). Ramping up the MDF unit is critical to avoid further liquidity stress.