Greenpanel Industries reported a 17.1% increase in MDF volume growth in Q3 FY26, with domestic volumes up by 19%. Total revenue grew by 11.4% year-on-year to ₹398.8 crore. Despite some pricing pressures post-Diwali, the company maintained strong gross and operating EBITDA margins through cost optimization. The company aims for high-teen growth in MDF volumes and expects high single-digit to early double-digit average operating EBITDA for the full year.
Financial Performance
Greenpanel Industries announced a revenue increase of 11.4% year-on-year, reaching ₹398.8 crore for Q3 FY26. The company saw a 19% increase in domestic MDF volumes and an 8.3% increase in export volumes. The total MDF volume growth was reported at 17.1% for the quarter.
Domestic pricing remained unchanged initially from Q2, but discounting pressures emerged after Diwali, leading to a sequential decrease in domestic realization by 1.4%. This was partly due to changes in product salience after the addition of a new plant and an increased proportion of OEM sales.
Margins and Cost Optimization
The company focused on cost optimization, resulting in higher gross and operating EBITDA margins year-on-year and sequentially. Timber costs, which had been decreasing, became more volatile due to severe winter conditions but have started to reduce again from January onwards. Chemical costs have also decreased from their Q2 peaks.
Operating EBITDA, excluding the impact of currency movement, was ₹44.3 crore, representing 11.2% of revenues, with MDF at 11.9% and Plywood at 1.4%.
Subsidies and Outlook
The company recognized a power subsidy of ₹8.5 crore for its Andhra plant. They have already recognized ₹15 crore of capital subsidies and ₹20 crore of revenue subsidies in the past. The company maintains its guidance for high-teen growth in MDF volumes with high single-digit to early double-digit average operating EBITDA for the full year.
Import Scenario and Future Plans
Imports are currently muted due to competitive domestic pricing. The company has implemented new QCO standards, which are more stringent than previous BI standards, to further restrict imports.
Greenpanel is working on scaling up its plywood business and may share more details in the coming quarters.
Source: BSE
