– Domestic MDF volumes jumped 30.5% YoY… but realizations slipped. Because life must stay balanced.
1. Opening Hook
Greenpanel kicked off the concall boasting about a Bali trip to energize distributors — because nothing says “margin improvement” like beaches and cocktails. The real surprise? Q2 actually delivered a turnaround after a painful Q1, helped by aggressive branding, product launches, and a sales team that clearly wanted another Bali outing.
But before investors could sip their coconut water in peace, management casually dropped a 40-crore forex MTM blow and chemical costs still refusing to calm down. The MDF party is back, but the DJ is playing with fluctuating FX rates.
Read on — the plot thickens faster than MDF resin.
2. At a Glance
- Domestic MDF volumes +30.5%– Sales team clearly returned from Bali with motivation.
- Realizations -4% YoY– Growth bhi aur discount bhi.
- Plywood volumes -5% YoY– But sequential recovery of 18% saved face.
- Revenue up 17.1% YoY– Volumes doing the heavy lifting.
- Operating EBITDA at 10.2% (ex-FX)– Good… until euro decided to moonwalk.
- FX impact ₹12.5 cr in Q2, ₹40 cr in H1– Euro MTM said “main karunga.”
- Net debt down by ₹60 cr– Inventory cleanup + cash discipline worked.
- Capacity utilisation ~50%– Still plenty of room to sweat the assets.
3. Management’s Key Commentary (Quotes + Sarcastic Translations)
“Domestic MDF volumes grew 30.5% YoY.”(Translation: Discounts, targeted pricing tweaks, and 13,000-person dealer activation did their job 😏.)
“Realizations fell 4%, but only 2% is actual price correction.”(Translation: Please don’t panic — we didn’t hardsell everything at Diwali offers.)
“Chemical prices are elevated but temporary.”(Translation: We really hope so, warna margin presentation phir sad ho jayega.)
“Imports have collapsed from 20,000 CBM/month to just 1,000.”(Translation: BIS finally doing its job. Miracle noted.)
“MDF EBITDA guidance: high single-digit to early double-digit.”(Translation: 10-11% is the new dream. Let’s not get greedy.)
“We reduced working capital by 17 days.”(Translation: Inventory bhar bhar ke rakha tha, ab thoda akal aayi.)
“No meaningful price hikes expected soon.”(Translation: Market share zyada important hai, pricing baad mein.”
“High teens volume growth achievable for FY26.”(Translation: We’ll push hard… just don’t question quarterly math too deeply.)
“New plant at 40% utilisation; all
three lines are now fungible.”(Translation: We’ll run whatever line gives the best economics — Excel decides.)
“High value mix at 44%.”(Translation: Premium बेच रहे हैं, margins बस धीरे-धीरे आएंगे.)
4. Numbers Decoded
---------------------------------------------------------------
Metric | Q2 FY26 | Commentary
---------------------------------------------------------------
Revenue | ₹389.4 cr | Strong 17.1% YoY rebound
Operating EBITDA (ex-FX) | ₹39.7 cr (10.2%)| Margin normalization begins
Reported EBITDA | ₹27.8 cr (7.1%) | Euro MTM punched hard
Domestic MDF Volumes | +30.5% YoY | Strategy shift working
Plywood Volumes | -5% YoY | Sequential recovery though
FX Loss Impact | ₹12.5 cr (Q2) | ₹40 cr in H1 🤯
Net Debt | ₹173 cr | Reduced by ₹60–71 cr
Capacity Utilisation | ~50% | Room for operating leverage
EPCG Income | ₹6 cr (Q2) | ₹11 cr YTD; ₹40 cr left
---------------------------------------------------------------Decoding:Q2 was essentially: “Volumes boom + cost savings – FX losses = mixed emotions chart.”
5. Analyst Questions (with Humorous Translations)
Q: MDF guidance still 550k CBM?A: Domestic high-teens growth; exports opportunistic.(Translation: Exports tabhi karenge jab margin milega… warna bye.)
Q: New plant utilisation?A: ~40%.(Translation: Calm down
