This article first appeared on GuruFocus .
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Consolidated Revenue:INR797 crore, up 18% year-on-year.
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Gross Margin:52.9%, largely flat compared to 53.1% in Q1 FY26.
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EBITDA (before ForEx):INR81 crore, up 48% year-on-year; margin improved to 10.2% from 8.1%.
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Net Profit:INR21 crore, versus a net loss of INR15.5 crore in Q1 FY26.
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Finance Cost:INR20 crore, down 25% year-on-year.
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Laminates Revenue:INR596 crore, up 7% year-on-year; sales volume of 4.62 million sheets (down 6% due to postponed export shipments); average realization of INR1,240 per sheet, up 14%.
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Plywood & Allied Revenue:INR106 crore, up 20% year-on-year; EBITDA loss narrowed to INR5 crore from INR9 crore.
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Panel & Allied (Chipboard) Revenue:INR95 crore, nearly quadrupled year-on-year; EBITDA turned positive at INR3.4 crore versus a loss of INR10 crore.
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Working Capital Cycle:Improved to 56 days from 59 days.
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Net Debt:INR934 crore as of June.
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Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated revenue grew 18% YoY to nearly INR800 crore, with EBITDA before ForEx up 48% to INR81 crore.
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Chipboard business turned EBITDA positive for the first time, with a profit of INR3.4 crore before ForEx, versus a loss of INR10 crore in Q1 last year.
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Plywood and Allied segment losses narrowed to INR5 crore from INR9 crore YoY, with sales volume up 19% and capacity utilization improving to 39%.
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Gross margin remained stable at 52.9% despite sharp input and freight cost increases, supported by price hikes.
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Net profit swung to INR21 crore from a net loss of INR15.5 crore in Q1 last year, aided by lower ForEx losses and finance costs.
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Working capital cycle improved by 3 days to 56 days, and net debt is expected to reduce by around INR100 crore in FY27.
Negative Points
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Ongoing West Asia conflicts caused volatile input prices, currency rates, and freight costs, leading to a significant hike in freight costs.
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Nearly INR27 crore of export shipments were postponed out of Q1 due to container and vessel availability issues, impacting laminate sales volume.
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Laminate sales volume declined 6% YoY, with domestic volume degrowth of 7.5% due to project business challenges from rising building material costs.
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Plywood segment continues to incur losses, with EBITDA breakeven expected only in a quarter this year, not for the full fiscal.
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Raw material price volatility, especially in chemicals, has led to multiple price hikes and reductions, creating market confusion and uncertainty.
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Chipboard capacity utilization is still low at 61%, and achieving optimal margins of 18-20% is not expected until FY29.
Q & A Highlights
Q: How is container availability impacting export sales, and could this lead to a weaker performance in Q2 FY27? A: Ashok Sharma, CFO, acknowledged that container and vessel availability remains a challenge, which caused around INR25-30 crore of export shipments to be postponed from Q1 to Q2. He noted that if this issue persists for the entire quarter, it could impact export sales, but the revenue is not lost, just deferred.
Q: With the recent price hikes and reductions, do you see any significant restocking or destocking in the trade channel? A: Ashok Sharma, CFO, explained that the price adjustments were driven by fluctuations in chemical prices, which are a major raw material. He stated that the nature of the business requires continuous stock, and the company does not push inventory into the channel, so they do not expect a negative impact. In fact, more affordable prices could positively influence secondary movement.
Q: What is the current status of the chipboard business, and what are the targets for pre-lamination mix, capacity utilization, and margins? A: Ashok Sharma, CFO, stated that the pre-lam mix is moving as per plan and is expected to be overachieved by year-end. The newly introduced HMR category is gaining traction, and more premium products will be launched. Samarth Agarwal, VP Finance, added that the focus is on optimizing the product mix with higher-value pre-lam and HMR boards. The company expects to reach around 70% capacity utilization for the year, with normalized margins of 18-20% achievable at full capacity, likely by FY29.
Q: The plywood segment continues to make losses. What is the strategy to turn this around, and when can we expect an EBITDA breakeven? A: Ashok Sharma, CFO, confirmed that the company is focused on its current premium segment rather than shifting to the mid-end market. Losses are narrowing, and the company is hopeful of achieving EBITDA breakeven in a specific quarter this year, though a full-year breakeven is difficult. He noted that achieving an EBITDA of INR20 per square meter would require capacity utilization of 80-85% or more, which will take time.
Q: How is the company planning to reduce its debt over the next two to three years? A: Ashok Sharma, CFO, stated that with CapEx of INR125-130 crore planned for FY27 (including INR70 crore for laminate expansion), debt reduction will be modest, around INR100 crore. From FY28 onwards, with no major CapEx planned, the majority of cash flows will be directed toward debt reduction. Samarth Agarwal, VP Finance, added that FY28 debt repayment will be slightly upwards of INR150 crore, following the repayment schedules.
Q: Can you provide details on the price hikes and reductions across different segments? A: Ashok Sharma, CFO, clarified that the price hikes were primarily in the laminate and chipboard segments, where chemical content is as high as 35%. Price increases were implemented in April and May, followed by reductions in June and July as raw material prices softened. The plywood segment saw only a modest price hike in April due to its lower chemical usage.
Q: What is the expected volume growth and margin guidance for the laminate segment for the remaining nine months of FY27? A: Ashok Sharma, CFO, reiterated the company's guidance of 10-12% revenue growth for the laminate segment for the full year, despite Q1 growth of only 7%. He noted that the company maintains this target even with the export shipment delays. Regarding margins, he stated that the laminate business can achieve around 15-16% EBITDA margins, though the current volatile raw material environment makes it difficult to provide a precise outlook.
Q: With the chipboard business turning positive, what is the outlook for capacity utilization and margins in the next one to two years? A: Ashok Sharma, CFO, stated that the company achieved 61% capacity utilization in Q1 and expects to average around 70% for the year. He indicated that at full capacity utilization with a better product mix, the chipboard business can achieve EBITDA margins of 18-20%, but this will happen over time, likely by FY29. The company is focused on increasing the share of pre-laminated and premium products to drive realization and profitability.
Q: What is the current capacity utilization target for the plywood segment in FY27? A: Ashok Sharma, CFO, stated that the plywood segment was at around 40% capacity utilization in Q1 and is expected to reach close to 50% for the full year. He also mentioned that the company is expanding its distribution network to West and Central India, which will drive incremental growth from these new regions.
Q: How is the company managing the impact of raw material inflation, and what proportion has been passed on to customers? A: Ashok Sharma, CFO, explained that the inflation was mainly in chemical prices, which fluctuated by 30-80% depending on the chemical. The company has passed on the entire impact of the raw material price increases to customers through price hikes. Other raw materials like wood and paper have remained stable. The net price hike passed on was 7-8%, primarily in the laminate and chipboard segments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
