Greenply Industries Q2 FY27 results: net profit up 167.4% to ₹42.73 crore, revenue up 16.1%

How did Greenply Industries perform in Q2 FY27?

Greenply Industries reported consolidated revenue of ₹799.69 crore for Q2 FY27, up 16.1% from ₹688.57 crore in Q2 FY26 and 10.3% from ₹724.89 crore in Q1 FY27. Total income was ₹803.17 crore. EBITDA stood at ₹89.23 crore, against ₹56.76 crore a year earlier and ₹78.30 crore in the previous quarter, while the EBITDA margin rose to 11.2% from 8.2% and 10.8% respectively.

Profit before tax was ₹63.22 crore, up from ₹29.19 crore in Q2 FY26 and ₹55.19 crore in Q1 FY27. Tax was ₹14.18 crore, and the company reported a net profit of ₹42.73 crore against ₹15.98 crore a year earlier and ₹37.61 crore in the previous quarter. Profit attributable to owners was ₹42.62 crore, and basic EPS was ₹3.42, compared with ₹1.28 in Q2 FY26 and ₹3.01 in Q1 FY27. On a standalone basis, revenue was ₹591.58 crore and profit after tax was ₹31.47 crore.

What changed in Greenply Industries' costs and profit?

Total expenses for Q2 FY27 were ₹739.95 crore, up 11.9% from ₹661.14 crore in Q2 FY26 and 10.2% from ₹671.51 crore in Q1 FY27. Cost of materials rose ₹65.32 crore to ₹313.38 crore from a year earlier, employee cost rose ₹11.02 crore to ₹101 crore, and other expenses rose ₹30.17 crore to ₹143.34 crore. Depreciation rose ₹2.54 crore to ₹18.38 crore, while finance costs fell ₹2.37 crore to ₹11.12 crore.

Other income was ₹3.49 crore, up ₹1.74 crore from ₹1.75 crore in Q2 FY26 and ₹1.67 crore from ₹1.82 crore in Q1 FY27. There was no exceptional item in either the year-ago or the reported quarter. Tax expense was ₹14.18 crore, up ₹6.85 crore from ₹7.33 crore a year earlier and ₹2.34 crore from ₹11.84 crore in the previous quarter. The company did not state reasons for the changes in these cost lines.

How did the first half of FY27 go?

For the first half of FY27, Greenply reported consolidated revenue of ₹1,524.57 crore, up 18.2% from ₹1,289.39 crore in H1 FY26, and total income of ₹1,529.88 crore against ₹1,304.31 crore. Profit before tax was ₹118.42 crore against ₹74.51 crore, and profit after tax was ₹80.34 crore against ₹44.44 crore. EPS for the half year was ₹6.43, compared with ₹3.56 a year earlier.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets stood at ₹2,177.44 crore against ₹1,961.65 crore at 31 March 2026, and total equity was ₹969.51 crore against ₹895.37 crore. Borrowings were ₹576.94 crore against ₹489.15 crore, and cash was ₹30.96 crore against ₹27.49 crore. Inventories rose to ₹404.78 crore from ₹364.44 crore, trade receivables to ₹421.58 crore from ₹407.01 crore, and trade payables to ₹458.78 crore from ₹452.19 crore.

For H1 FY27, operating cash flow was ₹86.39 crore, compared with ₹65.9 crore in H1 FY26. Investing cash flow was a net outflow of ₹147.2 crore against ₹47.78 crore a year earlier, and financing cash flow was an inflow of ₹64.26 crore against an outflow of ₹23.78 crore. Capital expenditure was ₹133.98 crore, up from ₹55.7 crore in H1 FY26.

How has Greenply Industries done over the last 8 quarters?

Revenue over the last eight quarters rose in each of the last seven quarters on a year-on-year basis. Revenue reached ₹799.69 crore in Q2 FY27, the highest in the period shown, while the lowest was ₹600.81 crore in Q1 FY26. EBITDA margin peaked at 12.0% in Q4 FY26 and bottomed at 8.2% in Q2 FY26; the Q2 FY27 margin was 11.2%, up from 10.8% in Q1 FY27.

Net profit over the same period bottomed at ₹14.34 crore in Q3 FY26 and peaked at ₹42.73 crore in Q2 FY27. It has risen year on year in each of the last three quarters, after a ₹15.98 crore net profit in Q2 FY26 and ₹14.34 crore in Q3 FY26.

Which businesses drove the quarter?

The plywood and allied products segment reported revenue of ₹626.14 crore in Q2 FY27, up 15.6% from ₹541.69 crore in Q2 FY26. EBIT for the segment was ₹54.65 crore against ₹38.86 crore a year earlier, with an EBIT margin of 8.7%.

Medium density fibreboards and allied products reported revenue of ₹173.9 crore, up 18.4% from ₹146.89 crore in Q2 FY26. EBIT was ₹20.15 crore against ₹4.32 crore a year earlier, and the EBIT margin was 11.6%. The company did not state reasons for the changes in segment performance.

What else did the company announce?

Alongside the results, the board approved further investment of up to ₹30 crore in one or more tranches in equity shares of Greenply Sandila Private Limited, its wholly owned subsidiary, for the proposed expansion of the plywood and allied products unit at Sandila, District Hardoi, Uttar Pradesh. The company said it expects near-term demand for plywood and allied products to exceed available capacity, and the equity subscription is to be made by Q4 of FY2028.

A separate filing set out a proposed 15.00 million square metre capacity addition at Sandila within Q4 of FY2028, requiring investment of approximately ₹125 crores to be financed through a term loan from a bank, equity from the holding company and internal accruals. Existing capacity was stated as 52.80 million square metres per annum, with capacity utilisation of nearly 98%.

The board also appointed Gaurav Drolia as Executive Vice President, Chief Strategy Officer and Senior Management Personnel with effect from 31 October 2026, on the recommendation of the Nomination and Remuneration Committee, and approved MSKA & Associates LLP as statutory auditors for five consecutive years from the conclusion of the 37th Annual General Meeting, subject to shareholder approval.

What did Greenply Industries' management say?

Management maintained plywood guidance for FY27 of more than 10% annual volume growth and a 10%+ EBITDA margin for H2 FY27 and for the year, with quarterly plywood revenue above ₹600 crore required for a double-digit margin. For MDF, FY27 volume-growth guidance was reset to about 20%, while core EBITDA margin guidance was maintained at 15%-16% and the CFO indicated EBITDA above ₹5,000 per CBM. Q3-Q4 production and sales were targeted at 63,000 CBM per quarter.

Management said the Sandila expansion adds 15 million square metres for ₹125 crore, with commercial production targeted for Q4 FY28. Odisha plywood is due in Q4 FY27, Vadodara MDF in Q2 FY28, and HDF flooring is expected to contribute in H2 FY27. Management also said SAMET dilution to 19% on 5 January should end the quarterly loss funding and loss drag. Mr. Sanidhya Mittal, Joint Managing Director, said: "I think next 12 months will be further bad. After that, structurally things can change once the smaller people actually die out and the demand catches up."

Management flagged risks including capacity constraints in plywood until Odisha and Sandila commission, adverse MDF supply and pricing pressure over the next 12 months, monsoon and annual maintenance interruptions to MDF production, chemical input costs remaining 7%-8% above prior levels, and SAMET remaining loss-making until dilution. No analyst concerns were recorded.

How did Greenply Industries shares react?

After the filing, which appeared after market close, the stock moved down 5.4% within five minutes, 7.4% within 15 minutes and 8.8% within 30 minutes. On the reaction day it was 7.9% lower from its pre-results close of ₹303.70, and by the next day's close it was 12.8% below that pre-results close. The Plywood Boards/Laminates industry median was down 0.6% on the reaction day and up 1.2% by the next day's close, while the Nifty Microcap 250 was down 2.5% and then 1.1%.

The stock's reaction-day move was 7.2 percentage points below the industry median and 14.0 percentage points below it by the next day's close. Earlier results-day reactions were mixed: the stock fell 8.2% on 24 July 2026, rose 6.8% on 28 April 2026, fell 5.3% on 4 February 2026 and 2.2% on 4 November 2025, and rose 1.8% on 29 July 2025.