Greenply Industries reported a 7.5 per cent year-on-year revenue increase to ₹689 crore for Q2FY26, but profitability declined as net profit fell 9 per cent to ₹16 crore. The building materials company’s EBITDA margins contracted to 8 per cent from 9 per cent in the same quarter last year, prompting Axis Securities to maintain a ‘Buy’ rating with a target price of ₹385.
The company’s performance was impacted by one-off factors in its MDF business, including inventory liquidation at discounted prices, and a weaker product mix in plywood. Gross margins compressed by 525 basis points year-on-year. MDF volumes grew 16 per cent while plywood volumes increased 7 per cent, though plywood realizations dropped 3.5 per cent due to higher sales of the value brand “Ecotec.”
Management expects significant improvement in the second half of FY26, projecting plywood margins near 10 per cent and MDF margins above 16 per cent. The company has expanded its MDF capacity from 800 to 1,000 cubic meters per day and anticipates full capacity utilization by H2FY26. Net debt stood at ₹510 crore, with plans to reduce it through improved working capital management.
Greenply aims to achieve more than 10 per cent growth in plywood volumes, supported by BIS enforcement favoring organized players and recovering housing demand. The company’s dual-brand strategy targets multiple price segments across tier 2 and tier 3 markets.
The shares of Greenply Industries Ltd ended on the NSE today at ₹291.35 down by ₹6.40 or 2.15 per cent.
Published on November 6, 2025
