Greenpanel Industries navigated a complex first quarter, balancing increased input costs and demand volatility while expanding domestic MDF volumes and sharpening its retail focus despite market challenges.
Greenpanel Industries said in a transcript of its first-quarter FY27 earnings call that it faced a sharp mix of cost pressure and demand volatility in the three months to June 30, even as domestic medium-density fibreboard, or MDF, volumes continued to rise. Management said geopolitical tensions in the Middle East pushed up chemical input costs and container freight rates, prompting the company to raise prices by about 15% in April to defend margins. According to the transcript published on August 11, domestic MDF volumes rose 12% year on year, while total MDF revenue increased 8% to ₹350 crore.
The company said consolidated operating EBITDA came in at ₹33.5 crore, with an MDF operating EBITDA margin of 10.3%. Greenpanel also pointed to a softer quarter in its OEM business, where sales fell 14%, and said export sales were nil, reflecting what it described as low-margin opportunistic business and pricing discipline. By contrast, the retail MDF channel grew by about 20% year on year, underscoring the company’s effort to shift towards higher-quality demand and stronger brand-led sales.
Himanshu Jindal, the chief financial officer, said margin improvement was helped by the April price increases, a more favourable mix in distribution products, lower timber costs and production efficiencies. He also said gross debt had fallen to ₹317 crore. The company sounded cautious on the outlook, saying it was not in a position to give firm guidance because chemical costs and competitive pricing remain uncertain, but it expects to rebuild domestic volumes over the rest of the fiscal year and sees export flows improving if conditions in the Middle East stabilise. It also acknowledged a crowded MDF market and persistent price sensitivity, while continuing to invest in product launches, trade events and marketing partnerships to support its retail push.
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