A leading plywood manufacturing company has grabbed investor attention after issuing a strong growth outlook for FY26. The firm announced double-digit revenue growth guidance, signaling robust demand and business momentum in the coming fiscal year.
Price Action
During Wednesday’s trading session, Greenply Industries Ltd shares hit an intra-day high of Rs.304.00 per share, rising 1 percent from the previous close of Rs.300.95 each. The share has since retreated and trading at Rs.294.70 per share.
Future Outlook
Greenply Industries, a prominent plywood manufacturer based in Mumbai, has outlined an ambitious growth strategy for FY26, aiming to achieve double-digit profit margins in its plywood business. Manoj Tulsian, Joint Managing Director and CEO, stated that internal improvements and selective price corrections are expected to restore profitability, with the company targeting an overall EBITDA margin of approximately 16 percent in the coming fiscal year.
The company is also encouraged by the anticipated stabilization or possible decline in timber prices, which, along with enhanced internal efficiencies and automation, is likely to further boost margins.
Having completed major investments in diversifying into Medium Density Fibreboard (MDF) and hardware, Greenply is now realigning its focus toward its core plywood segment. This renewed strategic direction, supported by operational upgrades, is expected to drive double-digit volume growth in FY26.
Growth Innitiatives
In a move to strengthen its brand presence, Greenply has also ramped up its advertising and promotion (A&P) spending. Over the past three years, A&P expenses have grown from roughly 3 percent to around 4.5-4.6 percent of total sales. This increased marketing push is aimed at enhancing brand recall, supporting market expansion, and sustaining long-term growth momentum.
Earnings Report
In its latest financial update, Greenply Industries Ltd reported a consolidated revenue of Rs.649 crores for Q4 FY25, up from Rs.600 crores in Q4 FY24, reflecting an increase of approximately 8.2 percent. However, the company posted a net profit of Rs.17 crores, marking a decline of around 39.3 percent compared to Rs.28 crores in the same quarter last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 12.09 percent and a Return on Equity (ROE) of 11.33 percent. Its Price-to-Earnings (P/E) ratio stands at 40.96, higher than the industry average of 39.21. Furthermore, the company maintains a current ratio of 1.5, a debt-to-equity ratio of 0.64, and an Earnings Per Share (EPS) of Rs.7.34.
Written by – Siddesh S Raskar
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