Century Ply margin rebounds as Q1 revenue grows +32.56% YoY
Costs grew more slowly than revenue, but interest and depreciation rose sharply and the tax rate increased 3.01 percentage points YoY.
Filed 31 Jul 2026, 14:04 IST · Century Plyboards (India) Ltd (CENTURYPLY)
Key takeaways
- Standalone operating margin widened 1.77 percentage points YoY to 12.76% as revenue growth outpaced expense growth.
- Standalone net profit rose +39.32% YoY to Rs 94.49 cr despite interest expense increasing +62.38%.
- Q1FY27 revenue rose +5.56% QoQ, lifting operating margin 1.59 percentage points from Q4FY26.
Price around the results
Revenue growth translated into faster operating profit
Century Plyboards reported standalone revenue growth of +32.56% YoY to Rs 1,348.41 cr, while operating profit grew faster at +53.89% to Rs 172.03 cr. Expenses increased +29.92%, below the pace of revenue growth, which lifted operating margin by 1.77 percentage points. On a sequential basis, revenue rose +5.56% and operating profit increased +20.59%.
Margin recovery came despite higher financing and depreciation costs
Operating margin improved to 12.76% from 10.99% YoY and 11.17% in Q4FY26 because expenses grew more slowly than revenue. Interest expense rose +62.38% YoY and depreciation increased +56.79%, limiting the conversion of operating gains into profit before tax. The tax rate also rose 3.01 percentage points YoY, while other income contributed 7.99% of pre-tax profit.
Margin is recovering, but remains below the peer median
The margin trend turned upward after the Q3FY26 low of 10.91%, rising to 11.17% in Q4FY26 and 12.76% in Q1FY27. Century Plyboards remained 2.11 percentage points below the 14.87% median operating margin of 45 Consumer Discretionary peers that had reported the quarter. Net profit growth was consequently lower than pre-tax profit growth at +39.32% versus +45.04% YoY.
Presentation highlights a large expansion programme
The presentation said total expenditure through 2026-27 was Rs 3,900.6 cr. It reported Rs 730 cr of expenditure on the Andhra Pradesh MDF project against a budgeted cost of Rs 600 cr, Rs 210 cr on the Andhra Pradesh laminates project against Rs 200 cr, and Rs 693.6 cr on the Chennai particle-board project against Rs 550 cr. The company also reported Rs 96.2 cr spent on the Andhra Pradesh PVC board project against a Rs 30 cr budget.
Current market response is still too fresh to assess
The results are too fresh for a market reaction to be assessed. After the company’s previous eight results, the stock rose three times and fell five times, with a median absolute move of 2.48%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,348 cr | ₹1,277 cr | +5.56% | +32.56% |
| Other income | ₹10 cr | ₹8 cr | +27.60% | -4.71% |
| Expenses | ₹1,176 cr | ₹1,135 cr | +3.67% | +29.92% |
| Operating profit | ₹172 cr | ₹143 cr | +20.59% | +53.89% |
| Operating margin (%) | 12.76% | 11.17% | — | — |
| Interest | ₹17 cr | ₹15 cr | +11.92% | +62.38% |
| Depreciation | ₹37 cr | ₹34 cr | +8.06% | +56.79% |
| Profit before tax | ₹129 cr | ₹102 cr | +26.56% | +45.04% |
| Tax | ₹35 cr | ₹25 cr | +41.15% | +63.33% |
| Net profit | ₹94 cr | ₹77 cr | +21.97% | +39.32% |
| EPS (₹) | ₹4.25 | ₹3.49 | +21.78% | +39.34% |
Operating margin of 12.76% compares with a Consumer Discretionary sector median of 14.87% across 45 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company’s capex details show total expenditure of ₹3,900.6 crore through 2026-27.
- The MDF greenfield project in Andhra Pradesh has a budgeted cost of ₹600 crore and total expenditure of ₹730 crore.
- The laminates greenfield project in Andhra Pradesh has a budgeted cost of ₹200 crore and total expenditure of ₹210 crore.
- The particle board greenfield project at Chennai has a budgeted cost of ₹550 crore and total expenditure of ₹693.6 crore.
- The company has budgeted ₹30 crore for a PVC board greenfield project in Andhra Pradesh, with total expenditure of ₹96.2 crore.
What to watch
- Whether operating margin holds above 12.76% after two consecutive quarterly improvements.
- Whether revenue growth remains ahead of expense growth after +32.56% and +29.92% YoY, respectively.
- How interest expense develops after its +62.38% YoY increase alongside the disclosed expansion expenditure.