Greenply Industries (GREENPLY) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue was INR 601 crores (₹60,081.19 lakhs), up 2.9% year-over-year, but down 7.4% sequentially from Q4 FY25.

• Core EBITDA rose 6.4% year-over-year to INR 62 crores, with margin improving to 10.3%.

• PAT declined 14.3% year-over-year to INR 28 crores, but increased 71.4% sequentially; consolidated net profit was ₹2,845.76 lakhs.

• June was weak due to liquidity challenges and delayed receivables, but July showed recovery and Q2 is expected to outperform Q1.

• Exceptional gain from sale of 30% stake in Greenply Middle East Limited contributed to one-time income.

Financial highlights

• PBT before exceptional items was INR 50 crores, up 33% year-over-year, excluding last year's one-off income tax refund.

• Gross profit margin improved to 42.8% in Q1 FY26 from 40.7% in Q1 FY25.

• Other income more than doubled year-over-year to ₹13 crore.

• Net debt rose to INR 538 crores as of June 2025, mainly due to inventory build-up in plywood and MDF.

• Share of loss from equity accounted investees increased to ₹9 crore, impacting consolidated profit.

Outlook and guidance

• Q2 FY26 is expected to be stronger than Q1, with July already showing improvement.

• Double-digit volume growth in MDF is targeted for the year, with margin guidance of 16%+; plywood volume growth guidance is more cautious, with double-digit margins expected.

• Hardware business is expected to incur a full-year loss of INR 15-20 crores, with growth and margin improvement anticipated from FY27.

• PVC business targets INR 200-225 crores topline in three years.

• First export from Furniture Hardware JV initiated in June 2025; total export business expected at ₹18 crore for FY26.