Greenply Industr Q2 FY27 Earnings Call — Analysis (NSE: GREENPLY)
Greenply posted 16.1% YoY revenue growth to ₹799.7 Cr with core EBITDA margin expanding 300 bps to 11.2%, while approving a ₹125 Cr plywood capex at Sandila and detailing the dilution of its loss-making SAMET JV to 19%.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Revenue ₹799.7 Cr ( +16.1% YoY ) . Guidance cut .
Results
Revenue grew 16.1% YoY to ₹799.7 Cr with core EBITDA of ₹89.2 Cr (11.2% margin, up 300 bps YoY), led by 15.5% Plywood value growth and 18.4% MDF revenue growth.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹799.7 Cr | +16.1% | yoy · Q2FY27 |
| Consolidated Core EBITDA | ₹89.2 Cr | +300bps | yoy · Q2FY27 · Core EBITDA margin reached 11.2% |
| Plywood Revenue | ₹625.7 Cr | +15.5% | yoy · Q2FY27 |
| Plywood Volume Growth | 6.1% | +6.1% | yoy · Q2FY27 |
| Plywood Core EBITDA Margin | 10.05% | +180bps | yoy · Q2FY27 · +160 bps QoQ |
| MDF Revenue | ₹173.9 Cr | +18.4% | yoy · Q2FY27 |
| MDF Sales Volume | 54,605 CBM | +16.1% | yoy · Q2FY27 |
| MDF EBITDA Margin | 15.2% | none · Q2FY27 · Impacted by rollback of Q1 price hikes | |
| Furniture Fittings JV Loss Share | ₹6.3 Cr | none · Q2FY27 · Share of JV PAT loss | |
| Net Debt | ₹544 Cr | point_in_time · Q2FY27 · Sep-26; D/E 0.56x |
Guidance
Revised MDF FY27 volume growth guidance to ~20% with 15-16% EBITDA margins, while targeting over 10% volume growth and double-digit margins in Plywood.
Key themes
Premiumization, capacity expansions, and JV restructuring
Operational commentary
- Approved ₹125 Cr brownfield plywood expansion at Sandila, Lucknow adding 15 MSM capacity, taking total capacity to 81.3 MSM by Q4FY28 with ₹320-340 Cr revenue potential.
- Announced dilution of stake in SAMET furniture fittings JV to 19% by January 5th to eliminate quarterly P&L drag and capex funding burden while retaining arm's-length brand royalty income.
- Launched patented nanotechnology anti-termite offering 'TermiVax' in the premium plywood portfolio and introduced the '11-year fully covered plus plan' on Greenply Gold.
- HDF flooring line commenced commercial production in July 2026; planned commercial rollout of Pre-lam Plywood scheduled for November 2026.
- Odisha plywood facility remains on track for commissioning in Q4FY27, and the Vadodara MDF expansion in Q2FY28.
- Agroforestry plantation project across Gujarat and Nagaland secured 256,688 VCS-validated carbon credits.
Analyst Q&A
Q. What led to plywood volume growth moderating to 6% and will capacity constraints cap H2 growth?
Plywood plants operated above 100% utilisation, prompting management to prioritise high-margin premium products (TermiVax) over volume until Odisha and Sandila capacities come online; outsourcing will be leveraged in H2 to achieve >10% full-year volume growth.
Q. Why did MDF realization drop QoQ and how can 15-16% margins be sustained despite raw material cost inflation?
The ~15.5% price increase taken in Q1 was fully rolled back due to market competition and chemical costs rose 7-8%, but margins are sustained via higher Pre-lam mix, lower energy costs, and plant operating efficiencies.
Q. What is the rationale and financial mechanism for diluting the SAMET JV stake?
SAMET requires ₹400 Cr in capex which Greenply chose not to fund; diluting to 19% by January 5 stops loss absorption on cash and consol P&L while enabling Greenply to earn brand usage fees and retain long-term upside.
Research and educational content only. Not investment advice.