Shares of Greenply Industries are drawing investor attention after the company reported steady volume growth and outlined expansion plans aimed at strengthening its medium-term earnings outlook.
In the December quarter (Q3FY26), plywood volumes rose 12.5% year-on-year, even as realisations declined by nearly 5%, taking segment revenue to ₹502 crore — up 7% from a year earlier. Management expects double-digit volume growth in the second half of the financial year, with mid-teen expansion projected over the longer term. The growth is being supported by deeper distribution reach and increasing traction for its “Ecotech” brand in the affordable segment. Improved supply-chain efficiencies have also enhanced dealer servicing, helping the company gain market share despite intense price competition.
The medium-density fibreboard (MDF) segment is emerging as a key growth driver. MDF volumes increased 14.5% year-on-year, while revenue rose 12% to ₹152 crore in Q3FY26. Margins, however, softened to 10% due to temporary production disruptions and a higher share of traded volumes, compared with a normalised guidance of over 16%. With operations stabilising and January witnessing record production, management anticipates more than 20% year-on-year MDF growth in the fourth quarter, alongside margin recovery.
Looking ahead, the company has approved a ₹425 crore investment to set up a second MDF line in Vadodara, adding 700 CBM per day of capacity. The plant, expected to be operational by FY28, has an estimated revenue potential of ₹600 crore and is projected to deliver return on capital employed (ROCE) of 16–18%.
Despite a net debt of ₹528 crore in Q3FY26, leverage is expected to remain comfortable, with net debt-to-EBITDA guided below 2x at peak. Analysts maintain a “Buy” recommendation, setting a target price of ₹248 per share, implying around 10% upside from current levels.
