Greenply shares fall 8.45% despite margin above sector median
The consolidated quarter delivered a 25.53% operating margin, while management highlighted capacity projects in plywood and MDF.
Filed 24 Jul 2026, 13:37 IST · Greenply Industries Ltd (GREENPLY)
Key takeaways
- Consolidated operating profit of Rs 185.05 cr on revenue of Rs 724.89 cr gave Greenply a 25.53% operating margin.
- Net profit was Rs 37.61 cr, with only Rs 1.82 cr of other income supporting profit before tax of Rs 55.19 cr.
- Greenply shares fell 8.45% on the results day despite its operating margin being 9.39 percentage points above the sector median.
Price around the results
Operating profit led the consolidated earnings profile
Greenply generated Rs 185.05 cr of operating profit from Rs 724.89 cr of revenue, indicating that operations were the main source of earnings in the quarter. Net profit was Rs 37.61 cr after Rs 7.49 cr of interest and Rs 17.43 cr of depreciation. With no sequential or year-on-year comparison provided, the quarter sets a profitability base rather than showing momentum.
Other income did not drive profit quality
Other income was Rs 1.82 cr against profit before tax of Rs 55.19 cr, so reported profit was not materially dependent on ancillary income. The earnings bridge below operating profit included Rs 7.49 cr of interest and Rs 17.43 cr of depreciation, followed by a tax rate of 21.46%.
Margin was well above the 22-peer sector median
Greenply's 25.53% operating margin was 9.39 percentage points above the 16.14% median for the 22 Consumer Discretionary peers that had reported the quarter. This places the company above the middle of the sector group on operating profitability. There is no quarter-on-quarter or year-on-year trend in the reported comparison set.
Management pointed to plywood and MDF capacity additions
Management said the company was taking a multi-pronged approach to emerging opportunities and that its strategic outlook includes a focus on ESG. The company said its 13.5 million square metre annual plywood project in Odisha was work in progress. Management also said the second MDF line at Vadodara, Gujarat, was work in progress with annual capacity of 210,000 CBM.
The market reaction was sharply negative
Greenply shares fell 8.45% on the results date, underperforming the broader market by 8.03 percentage points. The move included a 1.17% opening gap and volume at 6.85 times the reference level. The reported data does not provide a past-results reaction benchmark for judging whether this move was typical.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹725 cr |
| Other income | ₹2 cr |
| Expenses | ₹540 cr |
| Operating profit | ₹185 cr |
| Operating margin (%) | 25.53% |
| Interest | ₹7 cr |
| Depreciation | ₹17 cr |
| Profit before tax | ₹55 cr |
| Tax | ₹12 cr |
| Net profit | ₹38 cr |
| EPS (₹) | ₹3.01 |
Operating margin of 25.53% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -8.45% | -8.03% |
Volume on the results session was 6.85× 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.
Guidance & outlook
- The company is adopting a multi-pronged approach to leverage emerging opportunities.
Expansion
- A 13.5 million square metre annual plywood capacity project in Odisha is work in progress.
- The second MDF line at Vadodara, Gujarat, is work in progress with 210,000 CBM annual capacity.
New initiatives
- The strategic outlook includes a focus on ESG.
What to watch
- Whether operating margin holds around 25.53% in the next reported quarter.
- Whether the 13.5 million square metre Odisha plywood project moves beyond work in progress.
- Whether the 210,000 CBM Vadodara MDF line advances beyond work in progress.