Greenpanel Q2FY26: Strong Volume Growth; Margins Under Pressure – Maintain HOLD

Greenpanel Industries (GREENP) reported 17.5% YoY growth in consolidated revenue for Q2FY26, led by a 20.4% YoY rise in MDF revenue, which exceeded expectations. Blended MDF volumes grew 25.1% YoY (24.4% QoQ) — marking a 6-year CAGR of 12.5%. Domestic MDF volumes surged 30.5% YoY (+26.8% QoQ), driven by management’s strategic focus on volume expansion under its new growth strategy. However, margins remained under pressure. Reported MDF OPM fell 100bps YoY (though up 630bps QoQ), aided by EPCG benefits. On an adjusted basis, MDF OPM contracted 269bps YoY and 636bps QoQ, reflecting cost and pricing pressures. Management guided for high-teen MDF volume growth YoY and MDF OPM in high-single to low-double digits for FY26. We cut FY26E/FY27E EBITDA by 21.5%/6.8% to reflect softer margins and maintain a HOLD rating with a rolled-forward Sep’26E Target Price of ₹266 (unchanged). 📊 Outlook Summary: MDF Revenue Growth: +20.4% YoY Blended Volume Growth: +25.1% YoY EBITDA Revision: -21.5% / -6.8% for FY26E/FY27E Rating: HOLD | Target Price: ₹266 #Greenpanel #Q2FY26Results #EarningsUpdate #MDF #BuildingMaterials #HomeImprovement #EBITDA #RevenueGrowth #Margins #StockMarketIndia #StockYardResearch #HOLDRating #MidcapStocks #Q2Results