Greenpanel Industries (GREENPANEL) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw a strong operational and financial turnaround, with double-digit topline growth driven by a 30.5% YoY increase in domestic MDF volumes and an 18% sequential recovery in plywood volumes.

• Enhanced sales and marketing, new product launches, and a revamped loyalty program contributed to improved brand outreach and volume salience.

• Operational improvements included cost optimization, organizational restructuring, and raw material mix rationalization.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were reviewed and approved by the Board and Audit Committee, with no material misstatements found by statutory auditors.

Financial highlights

• Q2 FY26 consolidated revenue reached ₹389.4 Cr (₹39,597.40 lakhs), up 17.1% YoY and 20.7% sequentially.

• Domestic MDF volumes grew 30.5% YoY and 26.8% sequentially; plywood volumes down 5% YoY but up 18% sequentially.

• Operating EBITDA (excluding FX and one-offs) was ₹39.7 Cr (10.2% margin); reported EBITDA (including FX and one-offs) was ₹27.8 Cr (7.1% margin).

• Net loss after tax for Q2 FY26 was ₹880.43 lakhs, compared to a net profit of ₹1,850.40 lakhs in Q2 FY25, impacted by currency losses and higher finance costs.

• Net debt reduced by ₹60 Cr to ₹173 Cr, with a 17-day reduction in the cash conversion cycle and improved working capital efficiency.

Outlook and guidance

• Domestic MDF volume growth for FY26 is expected in the high teens percentage, with operating EBITDA margins (excluding FX and one-offs) in the high single-digit to early double-digit range.

• No immediate price hikes are anticipated; focus remains on volume growth, value-added products, and expanded marketing initiatives.

• Credit ratings reaffirmed at A+ by ICRA and CARE, with comfortable leverage and liquidity to support future growth.

• Recognition of government subsidies is deferred pending further clarity from authorities; partial subsidy received post-quarter end.