Greenpanel Industries (GREENPANEL) Q1 25/26 earnings summary

Executive summary

• Domestic MDF volumes grew 47% year-over-year on a like-for-like basis, but overall volumes declined 8.5% due to discontinuation of commercial-grade MDF post-BIS QCOs; export volumes fell sharply due to geopolitical disruptions and a focus on margins.

• Net profit was significantly impacted by a ₹27.5 crore currency loss on Euro borrowings for the new plant, resulting in a net loss for the quarter.

• Plywood sales remained weak but are expected to recover as synergies with MDF improve.

• Channel inventory buildup and aggressive competitor pricing affected volume growth.

• Focus areas for upcoming quarters include expanding distribution, increasing value-added product share, and strengthening channel connect through new products and digital initiatives.

Financial highlights

• Q1 FY26 consolidated revenue was ₹32,819.35 lakhs (₹323 crores), down 11.4% year-over-year and 4.8% sequentially.

• Gross margin improved to 47% from 44.6% in Q4 FY25, aided by a 7% sequential drop in timber prices, but down from 51% in Q1 FY25.

• Operating EBITDA margin (excluding FX) was 4%; reported EBITDA was negative ₹12.4 crores due to FX losses and plant stabilization costs.

• Net loss after tax for the quarter was ₹3,462.36 lakhs (PAT negative ₹34.6 crores); EPS was ₹(2.82) compared to ₹1.28 year-over-year.

• Core cash conversion/working capital cycle increased by 11 days to 47 days due to higher inventories and receivables.

Outlook and guidance

• No change in volume or margin guidance; focus remains on regaining market share and recouping lost volumes over the next nine months.

• Aggressive pricing and cost optimization strategies will be used to counter market pressures.

• Plans to widen distribution reach and increase value-added product mix; expected improvement in margins from Q2 as new plant stabilizes and timber prices continue to decline.