Century Ply’s Q4 margin slips sequentially despite 24.52% YoY revenue growth
Costs grew faster than revenue sequentially, while a lower tax rate amplified the 49.41% rise in consolidated net profit.
Filed 22 May 2026, 16:04 IST · after market close · Century Plyboards (India) Ltd (CENTURYPLY)
Key takeaways
- Q4FY26 consolidated net profit rose +49.41% YoY, helped by an 11.57 percentage-point fall in the tax rate.
- Sequentially, operating margin narrowed 0.72 percentage points as expenses grew +11.44% against revenue growth of +10.53%.
- The stock rose +1.49% in the first session after results, below its 2.48% median absolute post-results move across eight quarters.
Price around the results
Revenue growth lifted operating profit, but finance costs absorbed part of it
Consolidated revenue grew +24.52% YoY to Rs 1,492.21 cr, with expenses rising slightly slower at +23.60%; that operating leverage lifted operating profit by +31.81% to Rs 177.37 cr. Profit before tax grew a slower +26.86% because interest expense increased +52.74% and depreciation rose +37.59%. Net profit still increased +49.41% to Rs 79.41 cr.
Sequential margin pressure came from faster cost growth
Revenue grew +10.53% QoQ, but expenses grew faster at +11.44%, narrowing operating margin by 0.72 percentage points to 11.89%. The YoY comparison is better: costs grew slower than revenue and margin expanded 0.66 percentage points. The tax rate fell 11.57 percentage points YoY, which materially flattered net profit growth; other income contributed 4.51% of pre-tax profit and was not the main driver.
Margin remains below the Consumer Discretionary peer median
Operating margin rose from 10.96% in Q1FY26 to 12.60% in Q2FY26 and 12.61% in Q3FY26 before slipping to 11.89% in Q4FY26, ending the two-quarter improvement. Against 93 Consumer Discretionary peers that have reported the same quarter, Century Ply’s margin was 2.92 percentage points below the 14.81% median.
Management links MDF and particle board growth to utilisation and new capacity
The company’s presentation said MDF momentum was supported by improving capacity utilisation and quarter-on-quarter growth. It said particle board growth came from new capacity additions and better utilisation. The presentation lists greenfield projects costing Rs 600 cr for MDF and Rs 550 cr for particle board, alongside Rs 200 cr for laminates, Rs 30 cr for PVC board and Rs 51.4 cr for plywood.
The initial market response was milder than Century Ply’s usual result-day move
The results were filed after market close on 22 May, and the stock rose +1.49% on 25 May after opening with a +3.43% gap. It was down -1.27% after five sessions and -1.92% after 15 sessions. Across the previous eight results, the stock rose three times and fell five times, with a median absolute move of 2.48%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,492 cr | ₹1,350 cr | +10.53% | +24.52% |
| Other income | ₹5 cr | ₹-6 cr | — | +131.19% |
| Expenses | ₹1,315 cr | ₹1,180 cr | +11.44% | +23.60% |
| Operating profit | ₹177 cr | ₹170 cr | +4.19% | +31.81% |
| Operating margin (%) | 11.89% | 12.61% | — | — |
| Interest | ₹29 cr | ₹31 cr | -7.33% | +52.74% |
| Depreciation | ₹49 cr | ₹48 cr | +2.44% | +37.59% |
| Profit before tax | ₹104 cr | ₹85 cr | +22.20% | +26.86% |
| Tax | ₹24 cr | ₹20 cr | +22.57% | -15.19% |
| Net profit | ₹79 cr | ₹65 cr | +22.08% | +49.41% |
| EPS (₹) | ₹3.51 | ₹2.87 | +22.30% | +48.73% |
Operating margin of 11.89% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.49% | +0.17% |
| Next session | +0.40% | — |
| 5 sessions | -1.27% | -0.27% |
| 15 sessions | -1.92% | — |
| 30 sessions | +0.47% | — |
Volume on the results session was 40.48× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The MDF segment continued its momentum, driven by improving capacity utilisation and consistent quarter-on-quarter growth.
- The Particle Board segment grew through new capacity additions and improved capacity utilisation.
Expansion
- The capex table lists an MDF greenfield project at Andhra Pradesh with a stated cost of ₹600 crore.
- The capex table lists a laminates greenfield project at Andhra Pradesh with a stated cost of ₹200 crore.
- The capex table lists a PVC board greenfield project at Andhra Pradesh with a stated cost of ₹30 crore.
- The capex table lists a particle board greenfield project at Chennai with a stated cost of ₹550 crore.
- The capex table lists a plywood project at Punjab with a stated cost of ₹51.4 crore.
What to watch
- Whether consolidated operating margin moves back above 12.61%, the Q3FY26 level.
- Whether interest growth moderates from +52.74% YoY as the presentation-listed expansion projects progress.
- Whether MDF and particle board utilisation supports performance above the Q4FY26 operating margin of 11.89%.