Greenply Industries Ltd

Overview

• Standalone BRSR for FY2025-26; main activities plywood, blockboards, veneers, flush doors.
• Exports contribute about 0.1% of turnover; markets in 28 states, 6 UTs, 4 international.
• Reporting boundary: Standalone.

Key ESG Risks & Opportunities

• Climate change poses operational risk; mitigated by sustainable forest management and plantations.
• Energy usage presents opportunity; invest in efficiency tech and renewables to cut costs.
• Sustainable forest management: all timber from agroforestry, no deforestation.
• Water footprint risks in stressed regions; mitigate via reuse and RO-treated wastewater.
• Waste management: wood waste reused; packaging waste managed under EPR.
• Safety and health: strong OHS systems, training, and continuous improvement.

Governance & Policy Highlights

• Board-approved BR, CSR, Code of Conduct, Code of Ethics, Vigil Mechanism, HR policies.
• BR implementation overseen by senior leadership; MD/CEO coordinates with CFO and board.
• No external assurance; BRSR not mandatory; no penalties reported.

Social Responsibility & Workforce

• Total workforce 1,589; 96.5% male, 3.5% female; 4 differently abled permanent staff.
• Board representation: 1 female among 6 directors (16.7%).
• Turnover: permanent employees 25% male, 28% female; workers around 6%.
• Well-being spend 0.22% of revenue; health and retirement benefits provided.
• LTIFR: employees 0.891; workers 3.39; total injuries 3 employees, 13 workers.
• Accessibility: offices and plants accessible for differently abled; equal opportunity policy.
• Parental leave: 100% return-to-work and retention.
• Training: 106 programs; 42% coverage; 1 BoD; 1 KMP.
• CSR focus areas include girl education, mobile medical vans, eye camps, plantations.

Environmental Performance

• ISO 45001:2018 certified across all sites.
• Total energy 855,983 GJ; renewable 773,815 GJ; non-renewable 82,168 GJ.
• GHG emissions: Scope 1 3,972; Scope 2 11,284 tCO2e; total 15,256 tCO2e.
• Water withdrawal 179,725 kl; water intensity 0.89 KL turnover.
• Total waste 722.8 t; reused 38,077 t; non-hazardous 38,800 t; hazardous 10.7 t.
• EPR applicable; packaging waste managed via authorized recyclers; LCAs not conducted.

Stakeholder Engagement & Complaints

• Key stakeholder groups include investors, customers, employees, suppliers, communities; engagement channels vary.
• Customer complaints 1,786; 8 pending; value chain complaints 3,038; 40 pending.
• Employee grievances 0; POSH complaints 0; data privacy complaints 0.
• Engagement with lenders and investors via meetings, disclosures, and investor events.

Other Notable Metrics

• Sustainable sourcing: FSC-imported 36%, MSME 34%, local agroforestry 30%.
• Related-party transactions: purchases 18.27%; sales 3.22%; loans 86.86%; investments 99.37%.
• Anti-corruption policy exists; no penalties; internal reviews.
• Affiliations with four trade associations; no public policy advocacy.
• Nagaland CSR activity in Mon district.

Financial performance

• Consolidated revenue ₹2,739 crore; up 10.1% YoY.
• Consolidated EBITDA ₹270.5 crore; margin 9.9%.
• Consolidated PAT ₹89.78 crore; Basic EPS ₹7.19.
• Operating cash flow ₹246.9 crore; FY26 capex ₹157.2 crore.

Segment & operations

• Plywood revenue ₹210,417.20 lakh; MDF revenue ₹63,486.36 lakh; total ₹273,903.56 lakh.
• Plywood volume +8.3%; MDF volume +21.1%.
• MDF capacity expanded to 1,000 CBM/day; plan to 1,700 CBM/day.
• Semiliguda plywood facility progressing; completion FY2026-27.

Corporate actions & outlook

• Acquisition: 50% stake in Greenply Global Trading Pte Limited on 04 Mar 2026.
• Final dividend ₹0.50 per share; ₹624.51 lakh proposed.

Promoter-to-public reclassification

• Greenply files for NSE/BSE approval to reclassify promoter group as public.
• Application submitted on July 28, 2026 under Regulation 31A of SEBI LODR.
• Outgoing promoter group members have zero promoter shareholding (0.00%).
• Promoter group members named include Shobhan Mittal, Santosh Mittal, Shiv Prakash Mittal, Chitwan Mittal.
• Other outgoing entities: Aditya Mittal, Prime Holdings Pvt. Ltd., Niranjan Infrastructure Pvt. Ltd., Bluesky Projects Pvt. Ltd.
• Reclassification is sought under Regulation 31A of SEBI LODR Regulations.

Meeting Details

• Date: July 24, 2026
• Type: earnings conference call; group, virtual
• Organizer: Asian Markets Securities

Participants

• Company management: Joint Managing Director; Chief Financial Officer
• Moderator: Asian Markets Securities representative

Purpose

• Discuss Q1 FY27 results with investors and analysts

Additional Notes

• Call was recorded; transcript available on company website

Financial Performance

• Consolidated revenue for Q1 FY27: INR 724.9 crores, up 20.7% YoY.
• Core EBITDA: INR 78.3 crores; margin 10.8%; up 50 bps YoY.
• Plywood revenue: INR 526.6 crores; volume +13.8% YoY; realization INR 265/sq m; margin 8.4%.
• MDF revenue: INR 195.7 crores; volume ~58,000 CBM; margin 17.3%; value growth +32.8%.
• MDF flooring line commenced 20 July 2026; Vadodara MDF facility and Orissa plywood on track for commissioning.
• Net debt: INR 533 crores; debt-equity 0.57x; within guided 0.7–0.75x.
• JV furniture & fittings: revenue INR 13.61 crores; PAT loss INR 11.48 crores; Greenply share loss INR 5.74 crores.
• FY27 capex guidance: ~₹500 crores total (47 cr GIL; 100 cr GSPL; 300 cr GSPPL).

Segment Update

• Plywood: volume 13.8% YoY; revenue ₹526.6 cr; realization ₹265/sq m; margin 8.4%.
• MDF: revenue ₹195.7 cr; volume ~58,000 CBM; margin 17.3%; realization ₹33,525/CBM.
• Plywood utilization in Q1 ~92–93% due to April–May constraints and elections.
• MDF utilization target around 80–82%; MDF volume growth target 25–30% for the year.
• MDF flooring line commenced production 20 July 2026; potential 70% capacity add with ~1% EBITDA uplift.

Balance Sheet and Cash Flow

• Net debt ₹533 crores; debt-equity 0.57x; well within guidance range.
• FY27 end guidance: peak debt ₹710–₹725–₹730 crores; D/E ~0.75x.
• Six months post-peak, debt likely below 0.7x; year-end target ~0.65–0.7x.

Projects and Capex

• MDF line 2 capex: ~₹47 cr (GIL); ₹100 cr (GSPL); ₹300 cr (GSPPL); total ~₹500 cr.
• Orissa greenfield plywood facility and Vadodara MDF facility progressing toward commissioning.
• ContiRoll Tech: four plywood plants; two implemented; two more in H1; benefits seen from Q4 onwards.

Outlook and Guidance

• Plywood volume growth target: 10% for the full year.
• MDF volume growth target: 25–30% for the full year.
• Hardware business to reach zero losses by mid-next year; currency drag easing with capex.
• Timber prices expected to remain stable; any fall would be a windfall.

Q&A Highlights

• Plywood margins may improve as volumes scale; Q1 base was unusually weak.
• MDF ROCE target remains 17–18% long-term; scale and asset turns drive improvement.
• Flooring revenue potential in MDF: ₹75–₹80 crores peak; plain-board sales shift to flooring.
• End-FY27 debt peak guidance reaffirmed; capex-driven leverage to ease by mid-next year.
• Timber and chemicals price trends: timber stable; possible future cost hikes; MDF hikes 7–9%, plywood 3–5%.
• Furniture fittings face BIS and import competition; domestic manufacturing to reduce losses over time.
• Hardware business losses to zero by mid-next year; imported goods drag margins currently.