18% growth delivered, but laminate volume soft; chipboard inflection credible long-term

INR797 Cr revenue, 18.2% YoY growth, 7% QoQ decline

Gross margin 52.9% vs 53.1% prior year, flat YoY

EBITDA 81 Cr, margin improved 210 bps to 10.2% from 8.1% prior year

Chipboard EBITDA INR3.4 Cr positive vs INR10 Cr loss prior year Q1

Laminate revenue 7% YoY, but sales volume -6% YoY; domestic volume -7.5% (real estate delays)

Stated as timing but unverified recovery; container/vessel constraints ongoing

Q1 delivered 7% YoY; requires 25%+ in remaining 3 quarters to hit 18% annual

Chipboard EBITDA turned positive ₹3.4Cr Q1 FY27 vs ₹10Cr loss Q1 FY26. Revenue tripled to ₹95Cr on capacity ramp and HMR category traction. Represents an operational inflection point.

Plywood EBITDA loss halved to ₹5Cr Q1 FY27 from ₹9Cr Q1 FY26. Volume growth 19% YoY despite only 39% capacity utilization. Management now targeting FY27 breakeven for a quarter (vs prior full-year guidance ambiguity).

Laminate sales volume −6% YoY (4.62M sheets) despite +7% revenue. Domestic segment −7.5% due to real estate project delays and cost inflation. Export postponement (₹27Cr) unresolved. Undermines prior confidence in 10-12% laminate growth guidance.

Maintained 18% FY27 revenue growth guidance from prior calls. However, Q1 delivered 7% YoY; to hit 18% annual requires 25%+ growth in Q2-Q4. Domestic laminate softness and export delays introduce credibility risk on full-year target.

Management passed on 7-8% price hike net after cutting in June-July due to chemical price softening. Gross margin flat at 52.9% vs 53.1% prior year, indicating pricing power limited. EBITDA margin expansion of 210 bps came from operating leverage and cost controls, not pricing.

Container/vessel challenge ongoing. ₹25-30 Cr export moved to Q2; difficult to forecast if will continue full quarter or resolve. May impact export sales if persists.

Price cuts are normal business. Trade doesn't destocking because stock needed continuously. No aggressive inventory swings expected; when prices lower, demand should improve. No major channel impact.

Moving per plan, will overachieve targets. Can't quote percentage on call. HMR category gaining traction. More premium products coming.

Losses narrowing QoQ. Expecting EBITDA breakeven this year. Focused on current segment, not moving to mid-end. Hopeful full-year breakeven.

Mainly laminates and chipboard (chemical use 35%+). Plywood had modest hike in April; no June-July cut due to lower chemical content. Other segments not impacted.

Entire year will be difficult. It is for that quarter.

This year capex ₹125-130 Cr, expect debt down ~₹100 Cr. Next year+ no major capex, majority cash flow to debt reduction. Debt down significantly in 2-3 years.

No delays or preponement. Orders placed, equipment domestic, expect Q4 commercial production on time.

Already started last year. West and Central India products available now. North not planned. New regions (West/Central) will drive higher growth.

Yes, because products offered are premium (HMR, first-time in market). Good product acceptability. Organized shift will happen due to premium category. Companies reaching new customers.

Revenue growth 7.4% YoY; volume decline 6% due to export postponement (₹30 Cr). Add back export, near prior guidance figure. Still maintain 10-12% range for year.

Domestic volume degrowth 7.5%. Expect recovery in Q2+ as geopolitical clarity improves and market confusion settles.

At full capacity utilization with better product mix, can achieve 18-20% margin. Will take time; expect optimization over coming quarters.

Mainly chemical prices; ranges 30-80% by type. Increased then retracted by June. Passed on entire impact of chemical price increase. Other materials (wood, paper) stable.

Difficult to give Q-by-Q guidance. Overall 10-12% revenue still target despite 7% Q1. Can't guide margins due to raw material uncertainties. Past: laminates 15-16% margins.

Should be close to 50% for the year.

Want Q2 but difficult to confirm which quarter. At PAT level: once EBITDA breakeven, next step is PAT. Will see by year-end whether PAT this year or next.

Not as of now. Want to reach 80-90% utilization first before deciding. Only 4-5 quarters in; will monitor and then call. Current capacity sufficient through FY29.

₹70 Cr laminate expansion, ₹40 Cr regular capex, ₹20 Cr past greenfield payments = ₹130 Cr total. Yes, ₹100 Cr debt reduction target per plan.

At 61% current capacity utilization, averaging 70% for year. Plan: maximize value-add products (pre-lam, HMR) and improve product mix. Focus on profitable business.

₹20/SQM = ~8% EBITDA. Currently ₹270-275/SQM (~8% EBITDA). Need 80-90%+ capacity utilization to achieve. Will happen over time.

Close to 50%.

Continue to believe we'll achieve 18% target. Tough environment; difficult to split volume vs realization precisely. Hopeful on full-year target.

Should happen at all levels (gross, EBITDA, PAT) once market normalizes and chemical prices stabilize.

Laminates: 100%+ (achieved >100% before). Plywood: 85-90% maybe 100%, still learning. Decorative veneer/doors: 60-65% max due to manual work; difficult to reach 100%.

Reaffirmed from prior calls. Q1 delivered 7% YoY; requires 25%+ growth in remaining 3 quarters to hit target. Domestic laminate softness and export delays create execution risk.

Despite 7% Q1 delivery, management maintains 10-12% guidance. Betting on Q2+ recovery post-export delays and market normalization. Laminate expansion (2 press lines by Q4) will add capacity.

Chipboard at 61% Q1 utilization targeting ~70% for year. Pre-lam and HMR categories gaining traction. Volume growth 167% Q1 YoY from small base; growth trajectory clear but margins still thin (3.6% EBITDA).

Plywood at 39% Q1; management guides ~50% for full year. Volume growing +19% YoY. Premium segment strategy maintained; no pivot to mid-end despite losses.

Q1 laminate EBITDA margin 13.9%, up 70 bps YoY but shy of 15-16% target. Gross margin flat at 52.9%, limiting EBITDA upside. Price pass-through (7-8%) insufficient amid chemical volatility.

Currently 3.6% EBITDA margin (₹3.4 Cr on ₹95 Cr). Management expects 18-20% once full capacity + pre-lam mix + HMR ramp. FY29 timeline gives 2-3 years for execution; mechanism credible but long-dated.

Two laminate press lines commercial by Q4 FY27. Equipment orders placed, domestic sourcing, no delays expected. Post-FY27 capex to normalize, freeing cash for debt reduction.

West Asia conflicts causing container/vessel delays. ₹25-30 Cr export shipments postponed Q1. Management uncertain if resolved in Q2. Middle East is 6-7% of business; low direct exposure but logistics impact material.

Chemical prices (35% of laminate COGS, high in chipboard) ranged 30-80% swings over recent quarters. Company passed on 7-8% price hikes net after cuts. Gross margin flat at 52.9% vs 53.1% prior year despite inflation, indicating limited pricing power.

Laminate domestic volume declined 7.5% in Q1 due to cost inflation across building materials pushing real estate projects to defer purchases. Total laminate volume -6% YoY despite +7% revenue (offset by realization gains). Q1 described as 'confusing' with price hikes/cuts causing market hesitation.

Plywood launched as premium segment multi-years ago but still loss-making (₹5 Cr EBITDA loss Q1). Volume growth 19% YoY but scale insufficient to cover fixed costs. Management now targets EBITDA breakeven in one quarter FY27, not full year, and PAT profitability deferred to FY28. Strategy clarity weak; analyst probed mid-end pivot (like competitors), which management rejected.

Q1 PAT 2.6% margin (₹21 Cr on ₹797 Cr revenue) swung from ₹15.5 Cr loss primarily due to forex improving (₹1 Cr loss vs ₹11 Cr prior year) and interest costs down ₹6 Cr. EBITDA up 48% but PAT up 235%, indicating leverage to finance/forex, not operations. Any forex headwind or rate rise could flip back to loss.