Greenply Industr Q1 FY27 Results (NSE: GREENPLY)
Signal: Steady quarter
The read
Revenue growth accelerated to 20.6% YoY (vs 19.6% in Q4FY26), driven by MDF segment (+32.8%) which now contributes 27% of revenue. Gross margin expanded ~410bps YoY on raw material cost moderation, but OPM stayed flat at 9% due to higher operating expenses. Finance costs dropped 59.5% YoY, lifting PAT growth to 32.2% YoY, the highest in four quarters. The margin inflection is in MDF, not the core plywood business; standalone margins continue to contract.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹724.89 Cr | 20.6% | -6.6% |
| EBIT | ₹55.19 Cr | 35.0% | |
| Net profit | ₹37.61 Cr | 32.2% | |
| EPS | ₹3.01 | 32.0% | |
| EBIT margin | 9.0% |
P&L walk
Revenue grew 20.6% YoY to ₹724.89 Cr, driven by MDF segment (+32.8% YoY) while Plywood grew 17.0% YoY. Gross margin expanded ~410bps YoY as raw material cost % of revenue fell from 44.5% to 40.4%. However, EBITDA margin was flat at 9.0% due to higher other expenses and employee costs. Finance costs declined sharply by 59.5% YoY to ₹7.49 Cr, boosting PAT growth (+32.2% YoY). Share of loss from joint ventures narrowed to ₹5.74 Cr vs ₹9.15 Cr a year ago.
Segments
MDF segment is the growth engine: revenue +32.8% YoY, segment result +64.6% YoY, with segment assets rising to ₹83,138 lakh from ₹76,561 lakh a year ago, indicating capacity expansion. Plywood segment grew 17.0% YoY but result grew only 15.5%, margin compressed QoQ. The standalone (plywood-heavy) shows weaker margin performance vs consolidated, confirming MDF is driving group profitability.
Key positives
- Consolidated revenue growth of 20.6% YoY, accelerating from 19.6% in Q4FY26 and 9.6% in Q3FY26.
- MDF segment revenue +32.8% YoY and segment result +64.6% YoY, indicating strong operating leverage in the newer business.
- Finance costs declined 59.5% YoY to ₹7.49 Cr, improving interest coverage.
- Share of loss from JVs narrowed to ₹5.74 Cr (from ₹9.15 Cr a year ago), reducing drag on consolidated PAT.
- Consolidated PAT grew 32.2% YoY, the best growth since Q4FY26 (+86.4%).
Key concerns
- Consolidated OPM was flat at 9.0% YoY despite ~410bps gross margin expansion, indicating cost creep in other expenses and employee costs.
- Standalone OPM contracted ~100bps YoY to ~6.7%, showing ongoing margin pressure in the plywood business.
- QoQ revenue declined 6.6% vs Q4FY26, partly seasonal but Q4 had already shown 19.6% YoY growth.
- Plywood segment result QoQ dropped 35.5%, suggesting sequential margin pressure.
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