1. At a Glance
Greenply Industries Ltd, the OG plywood bhai of India, is currently trading at ₹223, nursing a -25% one-year return while the broader market pretends everything is fine. With a market cap of ₹2,778 Cr, Greenply sits in that awkward midcap zone where expectations are premium but patience is optional.
Q3 FY26 just dropped: Revenue ₹673.4 Cr (YoY +9.6%), but PAT fell to ₹14.3 Cr (YoY -31%). Translation? Sales are running, profits are panting. Operating margins hover around 8%, debt stands at ₹542 Cr, and ROCE is a modest 12.4% — not terrible, not sexy either.
The stock trades at 37x P/E, roughly the industry average, but the irony is strong: average valuation for below-average excitement. Meanwhile, Greenply is doubling down on MDF with fresh capex announcements, hoping engineered boards will do what plywood margins currently refuse to do.
Is this a turnaround loading… or just another capex PowerPoint story? Keep reading, detective. 🕵️♂️
2. Introduction
If Indian housing had a soundtrack, plywood would be the background music — always there, rarely noticed. Greenply Industries Limited has been playing this tune since 1990, owning roughly 26% of the organised plywood market. That’s not small. That’s “ghar-ghar Greenply” level dominance.
But markets don’t pay for nostalgia. They pay for margins, growth visibility, and some drama. And Q3 FY26 delivered drama — unfortunately, the kind accountants frown upon.
Despite steady volume growth and improving capacity utilisation, profitability has been under pressure thanks to raw material volatility, MDF gestation pain, and interest costs quietly creeping up. Greenply is no fraud, no scam, no governance circus —
it’s a clean, boring, old-school manufacturing story trying to reinvent itself for the engineered wood era.
The question investors are asking (while sipping cutting chai):
Can MDF save plywood’s soul?
3. Business Model – WTF Do They Even Do?
Greenply basically sells wood, but with branding.
Its core portfolio includes:
- Plywood & blockboards
- Decorative veneers
- Flush doors
- Specialty plywood
- PVC products
The business runs on a hybrid model:
- Owned manufacturing across Gujarat, West Bengal, Nagaland, and UP
- Asset-light partnerships (Bareilly, Hapur) for value-segment plywood
- Backward integration via veneer sourcing (including Gabon subsidiary)
This keeps capex moderate for plywood, but MDF? That’s where Greenply is going full gym mode.
The MDF business is housed under subsidiaries, with a Vadodara greenfield plant and now an approved expansion to 600–700 CBM/day by Q2 FY28, involving ~₹425 Cr capex plus ₹125 Cr equity infusion.
In short:
- Plywood = cash flow, slow growth, low drama
- MDF = growth, capex, patience test
If plywood is the dependable elder sibling, MDF is the risky startup cousin.
4. Financials Overview
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 673.4 | 614.0 | 689.0 | +9.6% | -2.3% |
| EBITDA | 51.0 | 51.0 | 51.0 | 0.0% | 0.0% |
| PAT | 14.3 | 20.8 | 16.0 | -31.2% | -10.6% |
| EPS (₹) | 1.15 | 1.96 | 1.28 | -41% | -10% |
