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Century Plyboards Defies Slowdown with Strong Q3 Growth
7 Feb
Summary
- Century Plyboards reported 18.4% revenue growth in Q3 FY26, reaching ₹1,350 crore.
- Management reiterates FY26 segment-wise growth guidance despite near-term demand challenges.
- Housing inventory conversion delays are identified as the primary near-term demand hurdle.
Century Plyboards India reported a strong operational performance for the December quarter of FY26, achieving an 18.4% year-on-year revenue increase to ₹1,350 crore. This broad-based growth, with the plywood segment up 15% and particle board an impressive 80%, occurred despite a challenging demand environment. Consolidated net profit rose by 9.4% to ₹64 crore, while EBITDA saw a significant 32% jump to ₹170.5 crore.
Management attributes current demand headwinds to delays in the conversion of housing inventory, explaining that their products are consumed upon home completion. However, they foresee this becoming a tailwind as stalled residential projects are nearing market entry. This expectation underpins the company's confidence in accelerating consumption over the next two years.
Despite these near-term challenges, Century Plyboards has reaffirmed its FY26 segment-wise growth guidance. This includes projections of 13% plus for plywood, 15% plus for laminates, 25% plus for MDF, and 40% plus for particle board. The company also anticipates stable margins due to the stabilization of raw material prices, such as timber and resins.
Looking ahead, Century Plyboards expects consumption to pick up significantly over the next two years. This optimism is fueled by the anticipated market entry of delayed housing inventory, which should translate into increased demand for their building materials. The company is well-positioned to capitalize on this expected recovery.
