Century Plyboard Q1 FY27 Results (NSE: CENTURYPLY)
Signal: Margin expansion
The read
Century Plyboard delivered a strong Q1FY27 with revenue growth accelerating to 33.5% YoY (from 18.4% in Q4FY26) and net profit surging 57.4%, driven by operating leverage across plywood and logistics segments. EBITDA margin expanded ~169bps YoY to ~12.8% despite slight raw material cost pressure, as employee and other expenses grew slower. MDF profitability remains weak and particle board is a drag. The logistics segment turnaround is a positive surprise. No exceptional items this quarter. Overall, the quarter reinforces the growth trajectory with margin recovery.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,561.38 Cr | 33.5% | 4.6% |
| EBIT | ₹145.84 Cr | 56.3% | |
| Net profit | ₹83.3 Cr | 57.4% | |
| EPS | ₹3.61 | 54.9% | |
| EBIT margin | 12.81% |
P&L walk
Revenue grew 33.5% YoY driven by strong volume/mix across all segments except particle board. Raw material cost as % of revenue increased slightly (52.9% vs 51.5%) but employee cost (15.2% vs 16.4%) and other expenses growth lagged revenue, delivering 169bps EBITDA margin expansion. Finance cost rose 33.2% but was more than offset by operating leverage. Net profit growth of 57.4% reflects higher operating profit and lower effective tax rate (28.3% vs 34.4% prior). EPS grew 54.9% with minor dilution from 5.7% higher minority interest.
Segments
Plywood segment (61% of revenue) grew 32.4% YoY with profit up 49.5%, driving consolidated performance. Logistics segment profit more than doubled to ₹706 Lakh from ₹254 Lakh, turning into a meaningful profit contributor. MDF profit declined 47.4% despite 28.9% revenue growth, likely due to higher depreciation from new capacity. Particle Board continued to report losses, widening to ₹785 Lakh from ₹93 Lakh loss a year ago.
Key positives
- Consolidated revenue grew 33.5% YoY to ₹1,56,138 Lakh, driven by broad-based volume growth across all segments except particle board.
- EBITDA margin expanded ~169bps YoY, reflecting operating leverage as employee costs grew 23.3% (vs revenue +33.5%) and other expenses (ex logistics) grew slower.
- Net profit rose 57.4% YoY to ₹8,330 Lakh, partly aided by lower effective tax rate (28.3% vs 34.4% in Q1FY26).
- Logistics services segment turned robust with revenue +48% and profit more than doubled to ₹706 Lakh (vs ₹254 Lakh).
- Plywood segment profit grew 49.5% YoY on 32.4% revenue growth, demonstrating strong demand and pricing power.
Key concerns
- MDF segment profit declined 47.4% YoY despite 28.9% revenue growth, likely due to higher depreciation from new capacity and possible product mix pressure.
- Particle board segment loss widened to ₹785 Lakh from ₹93 Lakh loss, a continued drag on overall profitability.
- Raw material cost as % of revenue increased ~1.4pp YoY, indicating input cost pressure not fully passed through.
- Finance cost grew 33.2% YoY due to higher debt for capex, though interest coverage remains adequate at 4.9x.
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