Century Plyboards Projects Mid-Teens Topline Growth In FY26 Driven by Capacity Expansion

Century Plyboards India Ltd. expects strong growth across product segments in FY26, led by capacity expansion, with topline growth expected to be in the mid-teens. This could gain traction in the coming years as the company targets an increase in market share, according to Executive Director, Keshav Bhajanka.

Speaking to NDTV Profit on Monday, Bhajanka said, “I think we have reasonable confidence that the current year is going to be strong. Our guidance given is 10% growth for plywood, 20% for laminates, 20% for MDF, and 40% for particle wood, based on the new capacity we have added. We are pretty much in line to meet or, perhaps, even exceed the guidance. On a weighted average, that would give you a mid-teens growth for the year.”

Bhajanka noted that value growth is expected to outpace volume growth due to inflation-driven price hikes already implemented in plywood and laminates. He said implementation of BIS-led mandatory quality control norms, effective August, would certainly benefit the company.

“The BIS implementation will definitely help us in a big way. However, it is effective only from this month, because small and medium enterprises were given a six-month breathing space. From this month onward, we should see substantial benefits, and it should definitely aid organised players,” the top executive said.

According to Bhajanka, despite oversupply in MDF, restrictive price hikes, operational efficiencies and raw material optimisation helped in improving margins for the company.

“With the new plant coming up in the South, last year we saw a huge jump in volumes. This is something we will not be able to replicate year on year, but I’m confident of achieving 20% plus growth in MDF. Since price increases are limited due to oversupply, we are focusing on operating efficiency,” he explained.

He further said the company had been able to save close to 5% through optimisation such as exploring substitutes in raw materials, improving consumption efficiency, and redesigning the logistics network.

“In an environment where you can’t take price increases to maintain margins, you have to become more efficient. Going forward, when the inflationary environment returns and we are able to take price increases, I believe there could be scope for a much higher Ebitda number,” Bhajanka added.

Century Plyboards reported a 55% year-on-year rise in consolidated net profit at Rs 52.93 crore for the quarter ended June 30, compared to Rs 34.11 crore in the year-ago period. Revenue from operations increased 16.3% to Rs 1,169.36 crore, up from Rs 1,005.38 crore in the same quarter of the preceding fiscal. Total expenses also rose to Rs 1,100.09 crore in Q1FY26 from Rs 942.79 crore in Q1FY25.

Shares of Century Plyboards closed 4.88% higher at Rs 764 apiece on the NSE on Monday, while the benchmark Nifty50 settled at 24,876.95, up 245.65 points, or 1%.