GREENPLY - Greenply Industr

📊 NSE: GREENPLY 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 22:36

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 7.5% YoY to INR 688.6 Cr in Q2 FY26. The MDF segment saw a robust revenue growth of 16.1% YoY to INR 146.8 Cr in Q2 FY26, while the Plywood segment grew by 2.9% YoY to INR 80.6 Cr in H1 FY26. For the full year FY25, total operating income grew by 14% YoY, driven by a 35% volume growth in the MDF segment.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company operates four manufacturing facilities across Nagaland, West Bengal, Gujarat, and Uttar Pradesh, serving the pan-India domestic market.

Profitability Margins

Standalone revenue for FY25 was INR 1,901.13 Cr with a PBILDT margin of 9.56%, an improvement from 8.52% in FY24. However, Q2 FY26 consolidated core EBITDA margin declined to 8.2% from 9.0% YoY due to one-off expansion shutdowns and inventory liquidation.

EBITDA Margin

Core EBITDA for Q2 FY26 was INR 56.8 Cr, a decline of 1.5% YoY. The EBITDA margin stood at 8.2%, down 80 bps from 9.0% in Q2 FY25. H1 FY26 EBITDA margin was 9.2%, a slight decrease of 20 bps from 9.4% in H1 FY25.

Capital Expenditure

The company successfully expanded its MDF manufacturing capacity from 800 CBM per day to 1,000 CBM per day in Q2 FY26. While specific INR Cr for this expansion was not detailed, the company indicated no major debt-funded capex is planned for the medium term following the stabilization of the Vadodara MDF plant.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE AA-; Stable' for long-term bank facilities and 'CARE A1+' for short-term facilities. Interest coverage improved to 5.52x in FY25 from 4.31x in FY24, indicating lower relative borrowing costs and a stronger financial risk profile.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Timber (the primary input), resins, and chemicals. Timber prices have remained steady, providing a favorable environment for branded players.

Import Sources

Sourced domestically and through international arrangements, specifically Gabon (via Greenply Gabon S.A.) for face veneers and timber supplies.

Key Suppliers

Greenply Gabon S.A. (a subsidiary of Greenply Middle East Limited) is a critical supplier for raw material arrangements, which are expected to remain unaffected despite Greenply reducing its stake in the parent entity.

Capacity Expansion

Current plywood capacity is 52.80 million square meters. MDF capacity was recently expanded from 800 CBM/day to 1,000 CBM/day (2,40,000 CBM per annum) at the Vadodara, Gujarat facility.

Raw Material Costs

Raw material price volatility is a major constraint. In FY25, optimized operating overheads and steady plywood performance helped improve PBILDT margins to 9.56% despite these risks.

Manufacturing Efficiency

MDF volume grew 35% in FY25, its first full year of operation. Q2 FY26 production was temporarily impacted by a shutdown for capacity expansion to 1,000 CBM/day.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

14-16%

Growth Strategy

Growth is targeted through the expansion of the high-margin MDF segment (capacity increased by 25% to 1,000 CBM/day), leveraging BIS implementation to capture market share from imports, and maintaining a strong brand presence in the premium plywood segment.

Products & Services

Plywood, Medium Density Fibreboard (MDF), blockboards, decorative veneers, and allied interior infrastructure products.

Brand Portfolio

Green Club 500, Green Club Plus 700, Green Gold Platinum (Premium); Ecotec, Bharosa, Jansathi, Wood Crest (Value/Mid-segment).

New Products/Services

The company is focusing on the growing MDF category and value-focused 'Ecotec' products to capture a wider market share across different price points.

Market Expansion

Expanding presence in the MDF market following the commissioning of the Vadodara unit in May 2023 and subsequent capacity enhancement in late 2025.

Market Share & Ranking

Greenply is one of the largest players in the domestic interior infrastructure and organized plywood sector.

Strategic Alliances

Greenply Samet Private Limited is a Joint Venture expected to break even by FY27.

🌍 External Factors

Industry Trends

The industry is seeing a massive shift due to BIS (Bureau of Indian Standards) implementation. Imports of MDF and plywood have dropped to just 3-4% of the previous year's levels, significantly benefiting domestic organized players like Greenply.

Competitive Landscape

Faces intense competition from both organized players and a large unorganized sector, though BIS regulations are currently marginalizing unorganized and imported products.

Competitive Moat

Durable moat built on a 30-year brand legacy, a comprehensive product portfolio ranging from value to ultra-premium, and a large-scale manufacturing footprint that provides cost efficiencies.

Macro Economic Sensitivity

Highly sensitive to real estate cycles and urban housing demand. GDP growth and rising disposable income drive the shift from unorganized to organized branded plywood.

Consumer Behavior

Increasing consumer preference for branded, quality-certified (BIS) products and a growing trend toward using MDF for modular furniture.

Geopolitical Risks

Exposure to management challenges and sustained losses in Middle Eastern operations led to a strategic disinvestment in GMEL.

⚖️ Regulatory & Governance

Industry Regulations

Mandatory BIS (Bureau of Indian Standards) compliance for plywood and MDF is the primary regulatory driver, acting as a barrier to low-quality imports and unorganized local production.

Environmental Compliance

Not disclosed in absolute INR values.

Taxation Policy Impact

The company faces pending tax litigations including a GST demand of INR 4.84 Cr for the period July 2017 to December 2022 and an Income Tax disallowance of INR 35.15 Lakhs for FY 2020-21.

Legal Contingencies

Pending GST demand of INR 4.84 Cr and Income Tax disputes totaling approximately INR 0.35 Cr are currently under appeal at various levels.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and the cyclical nature of the real estate industry are the primary risks. Sustained losses in overseas associates (GMEL) previously impacted consolidated profitability.

Geographic Concentration Risk

Manufacturing is diversified across four Indian states, reducing localized disruption risks.

Third Party Dependencies

Significant reliance on the outsourcing route for mid-segment brands like Ecotec and Bharosa to maintain market reach without heavy capital investment.