Century Plyboards delivered robust operational performance in Q3FY26 despite challenging demand conditions for building material companies. According to reports from CNBC TV18, the company reported consolidated net profit of ₹64 crore, up 9.4% year-on-year, while revenue climbed 18.4% to ₹1,350 crore. EBITDA jumped 32% to ₹170.5 crore, lifting operating margins to 12.6% from 11.3% a year ago. Executive Director Keshav Bhajanka highlighted the performance was particularly notable given the muted demand backdrop, with the company achieving close to 18% plus revenue growth across segments. As per the latest earnings call, the company achieved quarterly revenue of ₹1,350 crores representing 18.4% year-on-year growth, driven by sustained demand across product categories and robust performance from newly commissioned units.
As reported by CNBC TV18, Century Plyboards' performance was driven by strong growth across all business segments. The core plywood business posted 15% revenue growth, while laminates grew close to 10%. MDF revenues rose around 20%, and the particle board segment saw an 80% jump, aided by a low base and new capacity additions. According to the latest earnings call, the plywood segment achieved quarterly revenue of ₹710 crore with 14.9% year-on-year growth, supported by healthy volume growth and expanded distribution reach, with EBITDA margin at 15.1%. The laminate division reported quarterly revenue of ₹183 crore with 9.6% year-on-year growth, achieving EBITDA margin at 7.7% driven by better cost absorption and improved product mix. The MDF business continued strong growth with 19.1% year-on-year revenue increase, while the particle board segment achieved its highest ever quarterly sales of ₹65 crores with EBITDA at breakeven.
According to CNBC TV18 reports, Century Plyboards faces demand challenges as its products are consumed at the back end of the housing cycle when homes are completed and occupied. Bhajanka explained that new launches post-COVID were supposed to hit the market earlier but have been delayed due to multiple reasons, impacting demand for building material products. However, management expects this to turn into a tailwind over the next few years as delayed housing inventory finally comes to market, with new launches now hitting the market and driving robust growth expectations. The company expects domestic demand to start firing again from Q4 or early next year, with management confident of achieving 20% growth for the next financial year through a combination of domestic and export demand.
Despite near-term challenges, Century Plyboards has reiterated its segment-wise growth guidance for FY26, as reported by CNBC TV18. The company expects plywood revenues to grow 13% or more, laminates 15% plus, MDF 25% plus, and particle board 40% plus in the coming year. Bhajanka confirmed the company is sticking to these targets, indicating confidence in both demand recovery and execution capabilities. The management expects margins to remain resilient with raw material prices stabilizing after peaking earlier. On the earnings call, management expressed confidence in achieving 15% plus growth for the year, supported by both domestic and export demand, with larger sizes in export markets commanding higher per unit realization.
While Century Plyboards maintains its market leadership position, recent financial data reveals significant operational challenges. As per latest reports, consolidated net profit surged 72.42% year-on-year to ₹68.90 crores, but this impressive growth must be contextualized against a weak base in Q3 FY25 when profits stood at just ₹39.96 crores. However, PAT margin improved to 5.12% from 3.38% a year ago, though it remains materially below the 7.39% achieved in March 2024. The company faces mounting cost pressures with employee costs rising 18.66% to ₹205.64 crores and interest expenses climbing 80.55% to ₹31.09 crores due to aggressive capacity expansion funding through debt. The latest earnings call highlighted the company's continued focus on operational excellence and disciplined capital allocation, enabling maintenance of healthy return ratios while remaining committed to investments in brand building, technology upgrades and distribution expansion.
