Greenply Industries Q1FY26: Revenue Rises to ₹601 Cr, PAT Falls 14.3% on JV Losses; Stock Ends 1.7% Higher

Mumbai, 29 July 2025: Greenply Industries Ltd (NSE: GREENPLY, BSE: 526797) released its Q1FY26 results for the quarter ending 30 June 2025, reporting a revenue increase of 2.9% YoY to ₹601 crore, while net profit dropped 14.3% to ₹28 crore due to associate losses. Core operational margins improved, but bottom-line growth was weighed down by losses from joint ventures.

Greenply Q1FY26 Profit Drops 40% to ₹20.84 Cr Despite Higher Revenue

Greenply posted a consolidated revenue of ₹601 crore, up from ₹584 crore in Q1FY25, driven by strong MDF performance. Core EBITDA stood at ₹62 crore, rising 6.4% YoY from ₹58 crore. EBITDA margin expanded to 10.3% (up 40 bps). However, PAT fell to ₹28 crore, down from ₹33 crore YoY, affected by JV losses and an unfavourable base due to a ₹11.9 crore tax refund in the year-ago period.

Sequentially, revenue dropped 7.4%, and core EBITDA declined 9.5% from Q4FY25 levels. Profit before tax improved to ₹36 crore, up 5.9% YoY and 47.9% QoQ.

Plywood Segment Hit by Volume Decline, PAT Down 2.7% YoY

In the plywood segment, sales volumes fell 3.1% YoY to 17.1 MSM. However, realisation improved by 4.1% to ₹255 per MSM, resulting in a modest revenue rise to ₹437 crore, up 1.0% YoY. Core EBITDA in this segment was ₹36 crore, compared to ₹35.5 crore last year. PAT (excluding tax refund) stood at ₹20.5 crore, down 2.7% YoY. On a QoQ basis, plywood revenue fell 12.5% and PAT dropped 43.1% due to weaker demand.

MDF Segment PAT Soars 376% YoY to ₹16.9 Cr on Strong Volumes

The MDF business delivered strong growth. Sales volumes rose 8.5% YoY to 46,350 CBM, while realisation increased by 3.1% to ₹31,763 per CBM. Revenue jumped 11.7% YoY to ₹147.3 crore, also improving 8.6% QoQ. Core EBITDA climbed to ₹25.6 crore, up 16.7% YoY, and PAT (excluding forex loss) rose sharply to ₹16.9 crore, a 376% YoY jump from ₹3.6 crore. This segment continued to outperform, backed by strong domestic demand and capacity utilisation.

JV Losses of ₹9 Cr Drag Down Profitability

Greenply recorded a ₹9 crore loss from equity-accounted associates. This included a ₹5 crore loss from the Greenply Samet JV and ₹4 crore from GMEL Dubai. However, the company booked a ₹4 crore one-time gain from the partial stake sale in GMEL, offering some relief.

Net Debt Jumps ₹74 Cr QoQ to ₹538 Cr Due to Working Capital Needs

As of June 2025, total gross debt increased to ₹543 crore, up from ₹488 crore in March 2025. Net debt rose to ₹538 crore, up ₹74 crore QoQ. The net debt-to-equity ratio stood at 0.64x. Working capital cycle stretched, with days increasing to 58, compared to 44 days in the previous quarter and 38 days a year ago.

Furniture JV Starts Exports But Posts ₹5.4 Cr Loss

The Greenply Samet JV reported ₹6.5 crore revenue in Q1FY26 but posted a ₹5.4 crore PAT loss. Export operations began in June 2025, with initial shipments worth ₹1.02 crore. The JV is targeting ₹18 crore exports for FY26. Performance remains under watch as scale-up continues.

Dealer Network Expands to 225 with 110 New Additions

Greenply added 110 new dealers during the quarter, taking the total active count to 225. This expansion aligns with its strategy to grow distribution and reach in underserved regions.

Stock Gains 1.71% Post Results, Closes at ₹335.90

Following the Q1 announcement, Greenply shares gained 1.71%, closing at ₹335.90 on the NSE on 29 July 2025 at 3:30 PM IST. The stock saw a day’s high of ₹339.25 and a low of ₹323.65, with an opening price of ₹331.00.

• Market Cap: ₹4,156 crore
• P/E Ratio: 45.76
• Dividend Yield: 0.15%
• 52-week Range: ₹245.10 – ₹411.95
• Quarterly Dividend: ₹0.13 per share

Key Metrics Show Mixed Outlook Amid Margin Strength and Profit Pressure

Greenply Industries holds a market cap of ₹4,156 crore and trades at a P/E of 47.8, which is below the industry median. The price-to-book ratio is relatively high at 5.5, indicating a premium valuation. Institutional holding rose to 36.93%, up 0.46%. YoY revenue growth stood at 2.9%, and net profit growth declined 14%, while operating margins remained strong at 10.3% this quarter and 9.6% TTM. The company posted an ROE of 11.3% and ROA of 4.7%, both above the industry median. A Piotroski score of 7 underlines the company’s financial resilience, despite the pressure from joint venture losses.

REF:https://nsearchives.nseindia.com/corporate/GREEN_29072025151157_IR_Presentation_Q1_FY26.pdf

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