Century Ply’s margin improves as revenue growth outpaces costs
Operating margin expanded for a second straight quarter, while a lower tax rate amplified the 46.08% year-on-year rise in net profit.
Filed 04 Nov 2026, 13:29 IST · Century Plyboards (India) Ltd (CENTURYPLY)
Key takeaways
- Consolidated revenue grew 28.47% year on year as expenses rose 28.03%, lifting operating margin by 0.31 percentage points to 12.91%.
- Net profit rose 46.08% year on year, helped by a 0.89-percentage-point lower tax rate, while other income contributed only 1.48% of pre-tax profit.
- Management said the MDF business faced a challenging and highly competitive market, even as particle board and logistics recorded sequential and annual growth.
Price around the results
Revenue growth translated into faster operating profit
Century Plyboards reported consolidated revenue growth of 28.47% year on year and 14.00% sequentially in Q2FY27. Expenses grew slightly slower than revenue in both comparisons, allowing operating profit to rise 31.57% year on year and 16.16% sequentially. Pre-tax profit grew more slowly sequentially as interest expense increased 14.82%.
Cost control widened the margin, but tax also aided profit
The operating margin expanded by 0.31 percentage points year on year and 0.24 percentage points sequentially because expense growth remained below revenue growth. The tax rate fell by 0.89 percentage points year on year and 1.74 percentage points sequentially, adding to net-profit growth. Other income was only 1.48% of pre-tax profit, so reported profit was not materially dependent on it.
Margin recovery continues from the Q4FY26 trough
Operating margin has risen from 11.89% in Q4FY26 to 12.67% in Q1FY27 and 12.91% in Q2FY27. It was 12.60% in Q2FY26, so the latest margin is also above the year-ago level. The margin was 1.00 percentage point above the 11.91% median for 223 Consumer Discretionary peers that had reported the quarter.
Expansion pipeline remains concentrated in new plants
Management said the MDF greenfield project in Andhra Pradesh carries total capex of Rs 752.0 cr, while the laminates and PVC board projects there carry Rs 204.1 cr and Rs 96.2 cr, respectively. The company said the particle-board greenfield project in Chennai has total capex of Rs 702.4 cr. Management also reported planned H2 FY26-27 capex of Rs 388.5 cr, compared with Rs 340.7 cr in H1 FY26-27, and described MDF competition as challenging while citing growth in particle board and logistics.
No immediate market reaction is available yet
The stock has not yet recorded a reaction to these results. Across the eight prior result reactions, it rose three times and fell five times, with a median absolute move of 2.48%, indicating that post-result moves have more often been negative than positive.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,780 cr | ₹1,561 cr | +14.00% | +28.47% |
| Other income | ₹2 cr | ₹2 cr | -3.69% | +8.85% |
| Expenses | ₹1,550 cr | ₹1,364 cr | +13.69% | +28.03% |
| Operating profit | ₹230 cr | ₹198 cr | +16.16% | +31.57% |
| Operating margin (%) | 12.91% | 12.67% | — | — |
| Interest | ₹34 cr | ₹30 cr | +14.82% | +9.17% |
| Depreciation | ₹57 cr | ₹54 cr | +4.73% | +19.13% |
| Profit before tax | ₹141 cr | ₹116 cr | +21.44% | +44.28% |
| Tax | ₹38 cr | ₹33 cr | +13.95% | +39.55% |
| Net profit | ₹104 cr | ₹83 cr | +24.41% | +46.08% |
| EPS (₹) | ₹4.53 | ₹3.61 | +25.48% | +46.13% |
Operating margin of 12.91% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Particle Board continued its growth trajectory, with significant QoQ and YoY revenue growth and improved EBITDA margin.
- Logistics delivered strong topline growth and improved EBITDA margin in Q2 FY 2026-27.
Expansion
- The MDF greenfield project in Andhra Pradesh has total capex of ₹752.0 crore, including ₹48.0 crore in H2 FY 2026-27.
- The laminates greenfield project in Andhra Pradesh has total capex of ₹204.1 crore, including ₹2.5 crore in H2 FY 2026-27.
- The PVC board greenfield project in Andhra Pradesh has total capex of ₹96.2 crore, including ₹14.3 crore in H2 FY 2026-27.
- The particle board greenfield project in Chennai has total capex of ₹702.4 crore, with ₹8.8 crore incurred in H1 FY 2026-27.
- Total capex is ₹388.5 crore for H2 FY 2026-27, compared with ₹340.7 crore in H1 FY 2026-27.
Competition
- The MDF segment faced a challenging and highly competitive market environment in Q2 FY 2026-27.
Problems & risks
- The MDF segment operated in a challenging and highly competitive market environment during the quarter.
What to watch
- Whether operating margin holds above 12.91% after its rise from 11.89% in Q4FY26.
- Whether expenses continue to grow slower than revenue after the 28.03% versus 28.47% year-on-year comparison.
- Progress on the Rs 388.5 cr of H2 FY26-27 capex, alongside the reported MDF competitive pressure.