Greenpanel Industries Ltd

Resignation of Senior Management Personnel

• Resignation of Mr. Prakash Rameshbhai Tripathi, Chief Sales Officer, effective Nov 5, 2026, due to personal reasons.

Correction

• Correction: closure starts October 1, 2026, not September 1, 2026.

Greenpanel Industries Limited — Trading Window closed from September 1, 2026 until 48 hours after unaudited results for the quarter and half year ending September 30, 2026.

Rating action

• CARE Ratings (CareEdge) reaffirmed CARE A+/CARE A1+ bank facilities; outlook from Negative to Stable.
• Long/Short-term facilities increased to ₹160 crore from ₹120 crore.
• Long-term facilities ₹80 crore reaffirmed; outlook revised from Negative to Stable.
• Rating withdrawn for one RBI-regulated facility (non-fund-based) per Annexure-1.

Rationale

• Established domestic MDF leader with strong brand and extensive distribution.
• Surplus liquidity and robust capital structure despite recent debt-funded capex.
• Outlook revised to Stable due to four-quarter operating margin of 8-9%.
• Risks include low capacity utilisation and FX exposure from euro borrowings.
• Liquidity remains strong: ₹176 crore cash, ₹160 crore undrawn limits; ₹73 crore due FY27.
• Capex ramp-up in Andhra Pradesh commissioned March 2025; absorption of fixed overheads improves margins.
• Debt/PBILDT expected to improve below 1x; overall gearing ~0.27x.

Outlook & sensitivities

• Outlook: Stable for all ratings.
• Positive factors: volume-led TOI growth and margin expansion.
• Negative factors: sustained MDF price pressure or delayed project stabilisation increasing leverage.
• Material change since last rating: outlook from Negative to Stable; ratings reaffirmed.
• Liquidity remains strong with ample cash and undrawn limits.

Financial Performance

• Quarterly revenue: INR 350 crore, up 8.5% YoY.
• MDF volumes grew ~12% YoY; MDF revenues +8% YoY.
• Ply volumes +10.4% YoY; ply revenues +5% YoY.
• Consolidated EBITDA: INR 33.5 crore, 9.6% of revenues; excludes euro borrowing FX.
• MDF EBITDA margin: 10.3% in Q1 FY27 vs 4.4% YoY.
• Gross margin: 52.7% in Q1 FY27.
• Exports in Q1 FY27: zero; OEM demand degrew; domestic MDF volumes grew.
• Forex loss: INR 2.5 crore; ECB component INR 1.8 crore.

Operating Update

• MDF volumes grew 12% YoY; revenues grew 8% YoY.
• Ply volumes grew 10.4% YoY; revenues grew 5% YoY.
• Export flows expected to resume as Middle East normalizes over time.
• OEM share ~20–25%; retail ~75–80%.
• ASP increased ~7.4% due to OEM-to-retail mix shift.
• Pricing rollbacks by peers; market remains price-sensitive; exports limited this quarter.

Capex and Projects

• MDF capex planned: near-term capex largely maintenance; no new large capex in next 18–24 months.
• Plywood capex: plan to add machinery to raise production 30–40% with minimal investment.
• Maintenance shutdowns: 5–7 days this quarter; not a full 15-day shutdown.

Guidance and Outlook

• Guidance for full year withheld due to uncertainties; not in a position to provide long-term guidance.

Q&A Highlights

• Diversifying exports: exploring alternate markets; freight-volatility remains.
• OEM demand expected to recover this quarter; supply agreements being reestablished.
• Channel inventory: market on hand-to-mouth; partners hesitant to stock amid volatility.
• Raw-material volatility: chemical costs rising again; timber costs stable; monitor in real time.
• Domestic strategy: pricing aggressive to defend share; aim to regain industry leadership.
• June–July exports: very small quantities; Middle East exports unviable due to freight.

Risks and Watchpoints

• Raw-material price volatility and geopolitical risk in Middle East.
• Freight cost volatility impacting export competitiveness.
• Channel destocking compressing near-term volumes.
• Funding and capacity utilization dynamics across MDF and plywood.

Promoter-group reclassification

• Application dated August 11, 2026 filed with NSE and BSE for promoter-to-public reclassification.
• Outgoing promoter group members seeking reclassification include Rajesh Mittal; Karuna Mittal; Sanidhya Mittal.
• Additional entities listed: Rajesh Mittal & Sons HUF; RS Homcon Limited; Shakuntala Safeinvest Pvt. Ltd.; RKS Family Foundation.
• All identified holders currently hold Nil shares (0.00%).
• Outcome subject to regulatory approvals from NSE and BSE.

Meeting Details

• Date: August 11, 2026
• Type/Format: group conference call; virtual
• Purpose: discuss audited Q1 June 30, 2026 results
• Availability: audio recording uploaded on company website; transcript linked

Participants

• Key company participant: Company Secretary and Compliance Officer

Financial highlights

• Total income for quarter ended 30 Jun 2026: 51,241.85 Lakhs.
• Revenue from operations: 34,981.09 Lakhs.
• Other income: 16,260.76 Lakhs.
• Profit before tax: 213.19 Lakhs.
• Tax: earlier year impact (1,277.14); deferred tax 90.27.
• Total tax expense includes earlier year adjustments and deferred tax.
• Net profit after tax: 137.38 Lakhs.
• EPS (Basic/Diluted): 0.11 / 0.10.

Segment details

• Segment revenue from operations: Plywood 3,317.07; MDF 31,664.02; Total 34,981.09.
• Segment profit before tax: Plywood 172.46; MDF 3,630.00; Total 3,802.46.
• Finance costs: 558.24.
• Other unallocable expenditure net: 3,031.03.

Governance & notes

• Company has no subsidiaries, associates or joint ventures as on 30 June 2026.
• Operating segments: plywood and allied products; MDF and allied products.
• Promoter group reclassification approved; to Public shareholder category; subject to stock-exchange approvals.
• Board meeting started 1:00 PM, concluded 2:10 PM.
• Independent auditor's limited review completed; no material misstatement observed.