Credit rating agency ICRA has reaffirmed Greenpanel Industries' (GIL) long-term rating at 'A+ (Negative), while simultaneously enhancing the rated amount for fund-based working capital facilities from ₹120 crore to ₹160 crore. The company's total rated bank facilities have consequently increased to ₹240 crore, compared with ₹220 crore previously. The rating reaffirmation reflects the company's sustained strong liquidity profile and established market position in the medium density fibreboard (MDF) industry. The negative outlook indicates expectations that debt protection metrics will remain moderate compared to peers in similar rating levels.
GIL holds the position as India's largest domestic MDF manufacturing company with a total installed capacity of 8,91,000 cubic metre (CBM) per annum, as reported by Business Standard. The company maintains an estimated market share of 21% as of March 2026. The company operates two manufacturing facilities located in Pantnagar, Uttarakhand and Chittoor, Andhra Pradesh, with a total capacity of 8,91,000 CBM of MDF and 9 million square metres of plywood as on 31 March 2026.
The company is expected to report 9-11% growth in operating income to around ₹1,700-1,725 crore with likely improvement in operating margins to 9-10% in FY2027, according to Business Standard. This growth is led by volumetric growth and ramp-up of the new MDF plant started in March 2025, which is expected to continue in FY2027. The company maintains unencumbered cash and cash equivalents of around ₹197 crore as on 31 March 2026.
The continuation of the negative outlook reflects ICRA's expectation that operating margins will remain under pressure due to volatile raw material prices and fixed overheads related to the new plant started in March 2025, as reported by Business Standard. The rating is constrained by GIL's exposure to intense competition from large organised and numerous small unorganised players in the MDF segment, which restricts pricing flexibility. The company's products are vulnerable to real estate cycles and faces volatility in raw material prices and forex exchange rates due to unhedged foreign currency borrowings. The disclosure is a routine credit rating update and enhancement of rated banking facilities, it does not represent a fresh borrowing, capital raise or debt issuance.
The stock price declined 3.65% to end at ₹188.75 on the BSE following the rating announcement, according to Business Standard. Greenpanel Industries manufactures wood-based panel products including MDF boards, plywood and allied products, which are sold across the country under the brand name of Greenpanel. Future rating revisions will depend on operating performance, leverage and financial metrics, and if business performance or credit indicators deteriorate, the current Negative outlook could result in a future credit rating downgrade.
