Greenpanel Industries (GREENPANEL) investor relations material

Executive summary

• Q1 FY27 began amid heightened volatility from the Middle East conflict, causing chemical cost surges and industry-wide price hikes, followed by partial rollbacks due to competition.

• Retail MDF revenue grew by approximately 20% YoY, while OEM sales declined 14% YoY and exports dropped to zero, reflecting a strategic focus on higher-margin domestic retail.

• Investments in brand building included participation in Bharat Buildcon, a new website, national TV, trade exhibitions, and digital campaigns.

• Unaudited financial results for Q1 FY27 were reviewed and approved by the Board and Audit Committee, with a limited review by statutory auditors.

• Board approved reclassification requests from certain promoter group members to public shareholder category, pending stock exchange approval.

Financial highlights

• Q1 FY27 revenue was ₹34,981.09 lakhs (₹349.9 Cr), up 8.5% YoY but down 10.6% sequentially; net profit after tax was ₹122.92 lakhs, compared to a loss of ₹3,462.36 lakhs in Q1 FY26.

• Gross margin improved to 52.7%, up 5-6% YoY, driven by price hikes, lower timber costs, and production efficiencies.

• Operating EBITDA was ₹33.5 Cr (9.6% margin), up 157.3% YoY; PAT was ₹1.2 Cr.

• Plywood volumes rose 10.4% YoY, with revenues up 5% YoY; MDF domestic volumes up 12% YoY.

• Net debt reduced to ₹141 Cr from ₹156 Cr at March 2026 and ₹233 Cr at June 2025.

Outlook and guidance

• Chemical costs remain volatile and above pre-war levels, while timber costs are stable.

• Competition remains aggressive with discounts, requiring ongoing realignment of pricing strategies.

• No specific margin or capacity utilization guidance provided due to uncertainties; focus remains on ramping up domestic volumes and regaining market share.

• Export recovery is expected once Middle East conditions normalize; alternative export markets are being explored but are unlikely to fully offset Middle East losses.

• Comfortable leverage and liquidity position to support future growth.