Greenply Industries Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Global economic review

Global economic grew marginally at an 3.4% in 2025 compared to 3.3% in the previous year, influenced by the US tariff shock of April 2025. Despite being partially unwound through subsequent trade deals, it left effective tariff rates well above pre-2025 levels and heightened trade policy uncertainty.

Advanced economies witnessed a marginal growth from 1.8% in 2024 to 1.9% in 2025, while emerging market and developing economies demonstrated relative resilience, expanding by 4.4% in 2025 compared to 4.3% in 2024.

Global inflation continued its multiyear downward trend in 2025, declining to an estimated 4.1% from 5.8% in 2024.

Regional growth (%)	2025	2024
World output	3.4	3.3
Advanced economies	1.9	1.8
Emerging and developing economies	4.4	4.3

Performance of the major economies, 2025

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook report adopted a ‘reference forecast instead of a conventional baseline, assuming the war remains contained in duration, intensity, and reach, with disruptions easing by mid-2026, in line with commodity futures as of March 10, 2026.

Under this reference view, global growth is projected at 3.1% in 2026 and 3.2% in 2027. Global inflation is expected to rise to 4.4% in 2026 before easing to 3.7% in 2027.

(Source: OECD Interim Economic Outlook, IMF, World Economic Forum, Federal Reserve, Bank of England, European Central Bank, Bank of japan)

Indian economy

The Indian economy continued to demonstrate strong momentum in FY 2025-26, with real GDP growth accelerating to 7.7% from 7.1% in FY 2024-25, supported by robust domestic consumption and rising investment activity. This performance reinforced Indias position as the worlds fastest-growing major economy. To sustain growth amid moderating inflation, the Reserve Bank of India adopted an accommodative monetary stance, reducing the repo rate by 50 basis points to 5.5% in June 2025, marking the third consecutive rate cut since February 2025 and bringing the rate to its lowest level in three years. Subsequently, in December 2025, the RBI lowered the repo rate by a further 25 basis points to 5.25%, citing softness in key economic indicators. On the fiscal front, the GST Council approved a simplified two-slab tax structure of 5% and 18%, replacing the earlier four- tier framework. Effective September 22,2025, this reform eliminated the 12% and 28% slabs, streamlining the indirect tax regime and enhancing ease of compliance for businesses.

Indias Real GDP at Constant Prices was estimated at Rs.323.12 lakh Crore in FY 2025-26, compared with Rs.299.89 lakh Crore in FY 2024-25.

Growth of the Indian economy

	FY23	FY24	FY25	FY26
Real GDP growth (%)	7.0*	7.2	7.1	7.7

* The FY 2022-23 figure (7.0%) is from the old base year series (2011-12) as the new series back-data for FY 2022-23 will only be available after December 2026.

Growth of the Indian economy quarter by quarter, FY 2025-26

	Q1FY26	Q2FY26	Q3FY26	Q4FY26
Real GDP growth (%)	6.7	8.4	7.8	7.8

Note: Q2 revised upward from 8.2% and Q3 from 735% under the new base year 2022-23 series released February 27, 2026. Q4 remains an estimate. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained benign through much of FY 2025-26, with full-year CPI estimated at an exceptionally low 2.1%. This created room for 125 basis points of cumulative rate cuts, supporting consumption and investment.

However, macro stability was accompanied by currency volatility.

The Indian rupee depreciated sharply by 9.88% during FY 2025-26 - its steepest fall since FY 2011-12 - touching R94.83 against the US dollar. This reflected global capital flows, a strong dollar environment, and geopolitical uncertainties.

Capital flows and market behaviour

Foreign portfolio investors remained risk-averse, withdrawing a record Rs.1.8 trillion during FY 2025-26 - the largest outflow in 36 years. However, strong domestic institutional inflows of m50 trillion provided a crucial counterbalance, highlighting the growing maturity and depth of Indias domestic capital markets.

Indias market capitalisation declined 8% year on year in FY 2025-26 to $4.5 trillion from $4.83 trillion in FY 2024-25, marking the sharpest drop since FY 2022-23. On the last trading day of the year, the BSE Sensex fell 7%, or 5,467 points, compared with a rise of 5.10%, or 3,763 points, in the same period last year, while the Nifty 50 declined 5%, or 1,200 points, against a gain of 5.34%, or 1,192 points, in the corresponding period. The downturn was largely driven by the ongoing West Asia conflict and concerns around potential tariff measures under Donald Trump, which weighed on global investor sentiment.

Gold prices surged 64.1% during FY 2025-26 reflecting global risk aversion and safe-haven demand.

Indias net direct tax collections rose 5.12% y-o-y to Rs.23.40 lakh Crore in FY 2025-26, though this fell short of the Revised Estimate of R24.21 lakh Crore by approximately R80,000 Crore. Corporate tax collections came in at Rs.10.99 lakh Crore against a target of Rs.11.09 lakh Crore, while personal income tax (including STT) stood at R12.41 lakh Crore against a target of Rs.13.12 lakh Crore — the larger of the two misses, partly reflecting the income tax relief extended to the middle class in the Union Budget 2025-26.

Banking sector

Indias banking sector reflected improving financial health, with the gross non-performing asset ratio declining to a robust 2.1% as of September 2025, indicating stronger asset quality and disciplined lending practices. This stability was mirrored in profitability metrics, as scheduled commercial banks reported a return on assets of 1.3% and a return on equity of 12.5% during the first half of FY 2025-26, underscoring sustained operational efficiency and a healthier balance sheet trajectory.

Indias growth story

Real Gross Value Added (GVA), which measures economic output excluding taxes and subsidies, grew 7.9% in FY 2025-26, compared with 7.3% in FY 2024-25. At current prices, nominal GVA rose 9.1% to Rs.314.87 lakh Crore from Rs.288.54 lakh Crore a year earlier.

The tertiary services sector remained a key growth driver, expanding by 9.0% in FY 2025-26 and increasing its share in nominal gross value added to 54.3% from 52.8% in FY 2024-25, supported by broad-based momentum across segments.

During FY 2025-26, financial, real estate, IT and professional services grew by 9.9%, while trade, hotels, transport, communication and broadcasting recorded a strong 10.1% growth, and public administration and other services expanded by 5.8%.

The secondary sector grew 9.1%, accelerating from 8.0% in the previous year, driven by manufacturing alongside construction growth of 7.1%. This combination of services-led scale and manufacturing acceleration is shaping a more balanced and resilient economic structure.

Consumption and investment

During FY 2025-26, Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) maintained above-7% growth, reflecting a well-balanced demand composition across household spending and investment activity.

Growth catalysts

Policy-led consumption boost:

The Union Budget FY 2026-27s tax relief measures—particularly income tax exemptions up to Rs.12 lakh—are expected to stimulate discretionary spending and reinforce consumption- led growth.

Anticipatory Pay Commission impact: The 8^th Pay Commission, though expected to be implemented from FY 2027-28, is already shaping consumer sentiment, creating a forward consumption impulse.

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth focus:

The Union Budget maintains fiscal discipline while prioritising infrastructure, MSME support, skilling, and innovation—key levers for long-term productivity.

Outlook

The year under review underscores a defining divergence: a world grappling with uncertainty, and an India navigating it with confidence.

In a global environment marked by fragmentation and caution, India stands out as a rare convergence of stability, scale and structural opportunity. The World Bank has revised its FY 2026-27 growth estimate upward to approximately 6.6%, reflecting resilient domestic momentum even as growth moderates from the previous year. India is expected to retain its position as the fastest-growing major economy.

Growth will be shaped by a combination of strong domestic demand and resilient private consumption, supported by low inflation and GST rationalisation, alongside stable export performance with improved access to key markets. This momentum is further reinforced by sustained policy support, ongoing economic reforms, and a favourable demographic advantage.

While risks persist, particularly from elevated energy prices, subsidy pressures on government spending, and uncertainty in global demand, Indias macroeconomic fundamentals remain strong.

Over the medium term, sustained consumption, gradual investment recovery, and expanding global trade linkages are expected to reinforce Indias position as a key driver of global economic growth.

(Source: Upstox, Economic Times, India Today, Spaisa, Livemint, The Logical India)

Industry overview

Indias real estate industry

Indias real estate sector is on track for dramatic expansion, with its contribution to GDP expected to rise from 7.3% in 2025 to 15.5% by 2047, when the industry is expected to touch USD 5.8 trillion. Market estimates suggest the sector has the potential to even cross USD 10 trillion. By 2030, real estate in India is anticipated to scale to USD 1 trillion in size. Alongside this growth, retail, hospitality, and commercial real estate are witnessing significant momentum, buildingthe infrastructure needed to support the countrys expanding economy.

Housing sales across Indias top seven cities in 2025 stood at approximately 3.96 lakh units, reflecting a recalibration in volumes amid rising prices, economic uncertainty, and workforce adjustments in the IT sector. At the same time, the overall value of homes sold grew by 6% to cross Rs.6 lakh Crore in 2025, highlighting sustained demand in the premium housing segment. In comparison, 2024 recorded about 4.6 lakh units valued at nearly Rs.5.68 lakh Crore, underscoring a clear shift toward higher priced properties despite moderated transaction volumes.

In 2025, the Mumbai Metropolitan Region (MMR) led the housing market with about 1.28 lakh units sold, followed by Pune at nearly 65,135 units. Together, these two western hubs contributed close to half of the overall residential transactions across the top seven cities. Bengaluru registered around 62,205 units, while NCR recorded approximately 57,220 units.

Hyderabad accounted for 44,885 units, Kolkata for 16,125 units, and Chennai stood out with 22,180 units, emerging as the only city to post year on year growth.

Even as sales volumes moderated in several markets, new housing supply demonstrated resilience. Launches across the top seven cities rose 2% year on year, reaching about 4.19 lakh units in 2025 compared with 4.13 lakh units in 2024. MMR and Bengaluru together contributed nearly 48% of this fresh supply, underscoring their continued importance in shaping the national housing landscape.

Indias real estate sector attracted an all time high of USD 10.4 billion in institutional investments during 2025, marking the strongest annual inflow the industry has ever recorded. This surge underscores the growing confidence of both domestic and global investors, supported by favorable macroeconomic conditions, enhanced transparency, and sustained demand across key real estate segments. The residential market, in particular, drew heightened investor interest on the back of consistent housing demand, reinforcing the sectors appeal for long term institutional participation across both residential and commercial asset classes.

Outlook

Indias real estate market in 2025 reached an unprecedented high, with capital inflows into housing climbing 25% year-on-year to USD 14.3 billion, the strongest level of investment ever recorded. The surge carried into the final quarter, which alone attracted USD 3.3 billion—nearly 30% higher than the same period in 2024. Land, offices, and warehousing together accounted for almost 82% of Q4 activity, while more than 60% of land investments across the year were directed toward residential and office developments, with mixed-use and logistics projects close behind. Institutional investors played a defining role, with Canadian funds contributing 52% and U.S. investors 26% of foreign inflows during Q4. In addition to direct equity, investment and development platforms worth approximately USD 440 million were established across the office and residential sectors, underscoring the growing appetite for structured, longterm partnerships. This momentum reflects a combination of strong local demand and sustained foreign participation, reinforcing resilience in the sector. Office and residential assets continued to anchor the market, but 2025 also saw expansion into mixed-use, warehousing, and data centers, cementing the year as a watershed moment that reshaped Indias real estate landscape and set the stage for diversified growth ahead.

Indias real estate sector remained firmly on an upcycle through 2025, buoyed by strong macroeconomic growth, resilient consumption, policy continuity, and sustained investor confidence. One of the clearest signals of stability lies in developers willingness to place long-term bets beyond the metros. Tier 2 and Tier 3 cities accounted for 44% of [and acquisitions, with 3,294 acres transacted during the year. Notably, the sales value of these deals rose materially, indicating that capital is not only moving outward from the major urban centers but doing so with greater conviction. This outward expansion underscores both the depth of domestic demand and the confidence investors place in Indias broader growth story, positioning smaller cities as vital engines of the sectors next phase.

Global investment trends in 2025 were decisively shaped by the rapid rise of data centres as a cornerstone of digital infrastructure. Announced foreign direct investment (FDI) in the sector surpassed an estimated USD 270 billion, fuelled by accelerating demand for Al capabilities, cloud ecosystems, and high-capacity digital networks. Reflecting this momentum, data centres accounted for over one-fifth of global greenfield project values, positioning them among the largest recipients of new, from-scratch investments worldwide. This surge played a pivotal role in lifting overall global FDI by 14%, taking it to an estimated USD1.6 trillion.

In parallel, global healthcare private equity (PE) activity witnessed a strong resurgence in 2024, reaching an estimated USD 115 billion, its second- highest level on record. The upswing was driven by a rise in large-scale transactions, with five deals exceeding USD 5 billion, compared to two in 2023 and one in 2022, signalling renewed investor appetite for scalable, high- impact healthcare platforms.

Together, these trends point to a broader shift in global capital allocation towards future-ready, resilient sectors. The momentum reflects deepening investor confidence and a clear alignment with structural economic transformation, particularly in markets like India, where diversification across digital infrastructure and healthcare is shaping a more mature, opportunity- rich investment landscape poised for sustained, long-term growth.

(Source: CBRE, IBEF, Economic Times, Business Standards, UN Trade and Development, Bain and Company)

Indias furniture industry

Indias furniture market is set on a strong growth trajectory, expanding from USD 29.27 billion in 2025 to USD 31.51 billion in 2026, and expected to reach USD 45.52 billion by 2031 at a CAGR of 7.63% over 2026-2031.

The momentum is being driven by structural housing programs, formalization incentives for MSMEs, and rising urban household formation, which together broaden the base for the economy and mid-range products. A key inflection point comes in February 2026 with the enforcement of the Furniture Quality Control Order, reshaping compliance, warranty, and after-sales standards. This regulatory shift improves access to government and institutional demand while nudging unorganised producers toward certification. Public procurement channels such as the Government e-Marketplace and MSME sourcing mandates are increasing the share of project-based ordering, embedding documentation and lifecycle costing into contracts.

At the same time, consumer behavior is undergoing rapid transformation. The rise of work-from-home and gig economy culture has redefined home interiors, creating strong demand for home office furniture such as acoustic partitions, compact storage units, and height-adjustable desks. For millions of urban professionals, hybrid and remote work models have turned functional furniture into a necessity rather than a passing trend. Parallel to this, sustainable and eco-friendly furniture is gaining momentum, with millennial and Gen Z consumers increasingly shifting toward brands that prioritise environmental responsibility. This shift is opening lucrative opportunities for manufacturers who align with sustainability values.

Demographic trends add further fuel: Indias urban population share is on track to exceed 40% by 2030, up from 34.5% in 2021, intensifying housing formation and furnishing cycles in emerging urban clusters that absorb internal migrants. The Periodic Labour Force Survey shows that 18.9% of internal migrants move from rural to urban areas, translating into a steady stream of new household formations. Together, regulatory discipline, demographic shifts, evolving work culture, and sustainability-driven consumer choices are converging to energise Indias furniture market, positioning it as a sector primed for sustained and diversified growth.

Outlook

Indias Economic Survey underscores the countrys resilience amid global uncertainty, projecting GDP growth of 6.8-72% in FY 2026-27 The economy is expected to expand by 76% in FY 2025-26, driven by investment, manufacturing strength, and rate cuts, with GDP crossing the $4 trillion mark and cementing Indias position as the worlds fourth-largest economy. Inflationary pressures remain contained, with consumer inflation expected to rise to 4.3% in FY 2026-27 from an estimated 2.5 % in FY 2025-26. Food inflation is likely to normalise from current lows, while revisions in the Consumer Price Index basket will help limit the overall increase. Nonfood and core inflation are expected to provide a moderating effect, ensuring that price stability is maintained even as growth accelerates.

India is positioned to sustain its growth trajectory over the next decade. A stable macro-financial environment, proactive government spending, and the demographic advantage of a young, expanding population reinforce its status as the worlds fastest-growing major economy. Continued emphasis on structural reforms and adaptive policy responses will be critical to achieving long-term development goals in a dynamic global environment, ensuring that Indias growth story remains both robust and inclusive.

(Source: Persistence Market Research, Mordor Intelligence, Economic Times)

Indias wood panel industry

The Indian wood panels market, valued at approximately Rs.550 billion in FY 2023-24, is projected to expand to nearly Rs.885 billion by FY 2029-30. MDF continues to gain prominence within the segment, with its share increasing from 20% in FY 2019-20 to 30% in FY 2024-25 and expected to approach 45% by FY 2029-30. This shift is being driven by the growing adoption of modular furniture, evolving design preferences and faster replacement cycles in residential interiors. Wood panel beinga main component for furniture manufacturing in India has shown tremendous growth over past years and there is huge headroom for evolution in terms of modernization and upgradation.

Demand is mainly driven by the residential & commercial real estate segments where impetus is given on:

1) Increasing urbanization

2) Rising disposable income

3) Growing housing demand

4) Product premiumisation

5) Preference for branded products.

This sustained growth underscores the sectors structural tailwinds, including urbanisation, increasing housing demand, and a shift towards engineered wood products.

Wood-based panels are engineered sheet materials created by bonding wood elements, such as veneers, fibers, strands, or particles, under controlled heat and pressure with adhesives to deliver consistent structural and surface properties. These products maximise the use of wood resources by converting logs, residues, and recycled material into standardised panels with predictable strength, dimensional stability, and ease of use. Their applications span furniture manufacturing, interior fittings, flooring substrates, construction sheathing, packaging, and a wide range of industrial uses.

The market is expanding steadily, supported by several key drivers. Advancements in wood recycling technologies are reinforcing sustainability in furniture production, while growing demand for lightweight, functional furniture and the adoption of wood-based components in construction are strengthening the sectors appeal. Rising environmental consciousness among both companies and consumers is accelerating the shift toward renewable alternatives, with responsibly sourced and reclaimed wood gaining preference over synthetic substitutes.

Continuous improvements in manufacturing techniques are also fueling growth. Innovations in adhesive formulations, automated production lines, and continuous press technology have enabled producers to deliver panels with superior strength, durability, and visual appeal. At the same time, digital technologies such as artificial intelligence (Al) and the Internet of Things (loT) are being integrated into production systems to enhance quality control and streamline operations.

Together, these advancements highlight how sustainability, technology, and evolving consumer preferences are converging to drive the expansion of the wood-based panel market, positioning it as a critical segment in the future of furniture and construction industries.

The wood panel sector can be segregated into:

Plywood

Medium-density fiberboard (MDF)

Laminates

Particle boards

Veneers

(Source: Scribd, Fortune Business Insight, IMARC Group, Market Research Future, Economic Times, Axis Report)

Indias plywood sector

The Indian plywood market expanded at a CAGR of approximately 6% between FY 2017-18 and FY 2023-24, reaching an estimated value of Rs.300 billion in FY 2023-24. The market is projected to attain a value of nearly Rs.391.9 billion by 2034, reflecting sustained long-term demand and evolving consumer preferences.

The Indian plywood market generated a revenue of USD 7 billion in 2025 and is expected to reach USD 10 billion by 2033. Growth is being propelled by rapid urbanization, expanding residential and commercial construction, and rising consumer preference for modern interior furnishings. The organised sector is steadily consolidating its position through quality standardization, brand-building initiatives, and wider distribution networks across urban and semi-urban centers.

A major regulatory milestone came in 2025, when the Government of India introduced mandatory Quality Control Orders requiring plywood, MDF boards, and other wooden products to meet defined Indian standards. This move aims to strengthen domestic manufacturing and curb sub-standard imports, while also reshaping consumer expectations around warranty, compliance, and after-sales service.

Flomeowners and interior designers are increasingly drawn to premium plywood for its durability, aesthetic appeal, and versatility in furniture and construction applications. The expanding middle class, coupled with easier access to financing, is enabling broader consumer segments to invest in quality interiors. Infrastructure development in secondary cities is further extending market reach beyond traditional metros, while affordable housing and urban development initiatives continue to boost construction activity.

The market is also witnessing a clear shift from unorganised to organised players, as consumers prioritise quality assurance, brand reliability, and warranty-backed products.

Rising demand for premium interior solutions, modular furniture, and aesthetically appealing home decor is strengthening prospects, while growth in residential housing projects, commercial infrastructure, and organised furniture manufacturing creates significant opportunities.

With favorable demographics, rapid urbanization, and strong construction activity, Indias plywood market is positioned for steady expansion, evolving into a sector defined by quality, compliance, and long-term consumer trust.

(Source: IMARC, Grand View Research)

Growth drivers of the organised wood panel industry

Regulatory environment and policy push: Mandatory BIS certification, combined with the governments emphasis on sustainability, is reshaping the competitive landscape of the plywood and wood panel industry. Manufacturers already aligned with these standards stand to benefit most, as compliance positions them ahead in a market steadily moving toward stricter regulation and environmental responsibility.

Infrastructure as a growth catalyst:

The India Residential Construction market size is poised to reach USD 350 billion in 2030. Infrastructure development is acting as a powerful driver, fueling the need for plywood, MDF, and laminates. Organised players, with certified and sustainable offerings, are particularly well-placed to capture this demand, as buyers increasingly seek reliable, quality-assured products in a sector undergoing rapid formalization.

Evolving consumer choices:

Growing environmental awareness is reshaping the interior decoration and furniture industry, with a clear transition toward eco-friendly alternatives. Consumers are increasingly drawn to responsibly sourced, recyclable materials with lower carbon footprints, and this shift is influencing purchasing behavior across both urban and semi-urban markets.

Rising purchasing power:

At the same time, higher incomes are enhancing consumer buying capacity, fueling demand for contemporary, sustainable, and aesthetically appealing wood panel solutions. In 2026, Indias GDP per capita is around USD 2,810. These trends together create favorable conditions for larger, organised players, who are positioned to consolidate their presence further particularly in the plywood segment by offering quality-assured, branded, and sustainable products.

Expansion in construction and furniture demand: Wood-based panels have become integral to both the construction and furniture industries, valued for their strength, durability, and cost-effectiveness.

In the building sector, they are widely applied across structural work, interior design, and insulation, making them indispensable to modern construction practices. Rising residential and commercial projects, particularly in emerging economies are fueling this demand further. At the same time, the furniture industry is experiencing strong growth, driven by higher disposable incomes, evolving lifestyle preferences, and rapid urbanization. Together, these trends are reinforcing the role of wood panels as essential materials across multiple sectors, ensuring steady market momentum.

(Source: Mordor Intelligence, Indian Express, IMARC)

Indias Medium Density Fibreboard (MDF) sector

The India medium density fiberboard market size reached T119 billion in 2025 and the market is expected to reach Rs.127 billion by 2034, exhibiting a growth rate (CAGR) of 7.24% during 2026-2034. The India medium density fiberboard (MDF) market is driven by the growing demand in the furniture and interior decor industry, rising urbanization, technological advancements in manufacturing, rising adoption of eco-friendly alternatives to plywood, and government initiatives promoting quality standards, boosting domestic production and expanding market opportunities for MDF manufacturers.

Indias Medium Density Fibreboard (MDF) market is witnessing strong structural growth, supported by rising demand from the furniture and interior decor segments, accelerating urbanisation, and a clear shift towards engineered wood solutions. Increasing preference for eco-friendly substitutes to plywood, coupled with government- led quality standardisation and support for domestic manufacturing, continues to expand the opportunity landscape for MDF producers.

Technological advancements in MDF manufacturing have significantly enhanced product quality, durability, and moisture resistance, while also improving production efficiency. These innovations align closely with evolving consumer expectations and tightening environmental norms, positioning MDF as a preferred material across applications.

Indias MDF industry is entering a new phase of capacity expansion, with installed production capacity increasing from 4.5 million CBM in FY 2024 to 5.1 million CBM in FY 2025-26. Demand is projected to grow from 2.7 million CBM in FY 2023-24 to 3.7 million CBM in FY 2025-26, driven by rising furniture consumption, organised housing demand, commercial interiors and the increasing substitution of plywood with engineered wood products. As demand catches up with fresh capacity additions, capacity utilisation is expected to improve significantly from 51% in FY 2023-24 to 72% in FY 2025-26, indicating a healthier demand-supply balance and stronger absorption of industry capacity.

The emergence of organised interior infrastructure and modular furniture companies has further accelerated market penetration. At the same time, the industry remains relatively consolidated, with the top four players accounting for nearly 70% of total installed capacity, reinforcing a focus on quality, scale, and operational efficiency.

These factors have not only strengthened domestic supply but also positioned India as an increasingly competitive exporter of MDF. Improved product quality and cost competitiveness are enhancing Indias appeal in global markets, supporting the industrys long-term growth outlook.

(Source: Mordor Intelligence, Axis Report, IMARC)

Factors driving MDF demand growth

MDF is increasingly adopted as a cost-effective replacement for lower-end plywood, offering superior machinability and moulding flexibility.

The surge in modular and prefabricated furniture demand has positioned MDF as the preferred material for manufacturers due to its adaptability and consistency.

Innovations in adhesives, automated production lines, and continuous press technology are enhancing product strength, durability, and aesthetics.

Applications are expanding into flooring, decorative items, and interior design elements, widening the scope of MDF usage.

Growing middle-class purchasing power and lifestyle upgrades are fueling demand for contemporary, sustainable, and stylish MDF solutions.

Beyond residential use, MDF is gaining traction in commercial interiors, retail fixtures, and industrial applications, broadening its market base.

Government initiatives

Housing

initiatives

In the Union Budget for FY 2026-27, allocations under various schemes of the Pradhan Mantri Awas Yojana (PMAY) reflect the governments continued emphasis on affordable housing. Over recent years, funding has varied significantly: Rs.A0,260 Crores in FY 2020-21, Rs.90,020 Crores in FY 2021-22, Rs.73,615 Crores in FY 2022-23, Rs.A3,A5A Crores in FY 2023-2A, Rs.A7,596 Crores in FY 202A-25, and Rs.78,126 Crores in FY 2025-26.Urban housing has progressed steadily under both phases of PMAY-Urban.

As of November 2A, 2025, a total of 122.06 lakh houses had been sanctioned, underscoring the scale of the programs impact. These allocations and outcomes highlight the governments sustained commitment to expanding housing access across urban and rural India, while strengthening the foundation for inclusive urban development.

Infrastructure

development

In the Union Budget for FY 2026-27, the government has proposed raising capital expenditure to T12.2 lakh Crore, up from Rs.11.2 lakh Crore in the current fiscal year.

This increase underscores the continued emphasis on infrastructure-led growth. The Indian economy is expected to expand at 7.A% during the current financial year, with inflation expected to remain near 2%.

The fiscal deficit is estimated at A.A% of GDP, reflecting a balance between growth priorities and fiscal discipline. Economists highlight capital expenditure as a critical policy lever, given its high multiplier effect. Investments in infrastructure, transport, housing, and logistics not only stimulate immediate demand but also create longterm support for manufacturing and services, reinforcing Indias growth trajectory.

Policy support for domestic manufacturing

The Government of India is intensifying its push to strengthen local manufacturing and reduce dependence on imports, with the ‘Make in India campaign serving as a cornerstone of this effort. For the furniture industry, this translates into policy backing, infrastructure development, and targeted incentives that enable domestic producers to scale operations and compete more effectively. Complementary schemes are reinforcing this momentum. The Duty Refund Scheme reimburses customs duties and excise taxes on imported raw materials used in manufacturing, enhancing export competitiveness. Meanwhile, the Export Promotion Capital Goods (EPCG) scheme allows duty-free import of capital equipment, lowering input costs and expanding production capacity.

Skill development and sectoral growth

The Government of India has prioritised skill development as a cornerstone of industrial growth. Through the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), more than 1.6 Crore youth have already been trained in industry-relevant skills, enhancing employability across sectors.

Building on this success, PMKVY A.O is set to broaden its impact by introducing Industry A.O courses, on-the-job training opportunities, and an expanded delivery network to ensure nationwide reach.

Complementing these efforts, initiatives such as the establishment of a dedicated furniture park in Uttar Pradesh are equipping artisans with specialised training and strengthening sectoral capabilities. Together, these programs reflect the governments commitment in creating a dynamic, skilled workforce that can drive sustainable industrial growth.

(Source: Times of India, Ministry of Skill Development, National Portal, PIB, ijfmr)

Company overview

Greenply Industries Limited, founded in 1984 in Mon district of Nagaland, has emerged as a prominent name in Indias interior infrastructure space, distinguished by its focus on innovation, sustainability, and quality. Over nearly four decades, the company has shaped interiors nationwide with a diverse portfolio spanning across plywood, medium- density fibreboard (MDF), WPC/ PVC Boards, Frame and Doors, MDF Flooring Boards, Pre-laminated MDF Boards, blockboards, decorative veneers, flush doors, and allied interior products. Greenply has also its presence in the furniture fittings and functional hardware segment through its joint venture with Samet, a globally recognised furniture fittings manufacturer headquartered in Turkey. The joint venture operates through a manufacturing facility in India and offers an extensive range of advanced furniture hardware solutions. The Company has established a robust pan-India distribution and retail network with operations spanning over 1,100 cities, towns, and villages across 27 states and 6 union territories.

Its extensive channel ecosystem comprises more than 3,000 dealers and authorised stockists, over 6,000 retail touchpoints, and 60+ physical and virtual branches, enabling deep market penetration and efficient customer reach nationwide.

Manufacturing facilities

Greenply operates five manufacturing facilities strategically positioned across West Bengal, Uttar Pradesh, Nagaland, and Gujarat, enabling a broad product availability and nationwide coverage. In alignment with its growth agenda and to address the rising demand for MDF, the company is preparing to expand its MDF production capacity, reinforcing its standing within Indias interior infrastructure industry.

Products and brands

Greenplys product portfolio reflects the Companys commitment to innovation, quality and sustainability, offering a comprehensive range of solutions that meet the evolving needs of consumers and industry professionals. Greenply has introduced several industry-leading innovations, including Zero Emission (EO) plywood and Fire-Retardant plywood, while reinforcing responsible forestry and sourcing through its FSC Forest Management (FM) certifications.

Plywood and blockboards:

Greenply plywood sets benchmarks for strength, quality and global compliance. Greenply has been a pioneer in delivering eco-friendly and sustainable plywoods and blockboards. The portfolio spans commercial and marine grades, calibrated boards, flexible and structural options (IS:10701), fire retardant variants (IS:5509), and large format sheets up to (10x4).

Decorative veneers: Crafted from premium global wood species, Greenplys veneers combine natural elegance with contemporary design. Precision finishing ensures interiors are elevated into refined, luxurious spaces.

Flush doors: Greenplys flush doors are engineered for the demands of modern construction - zero-emission certified, fire-safe, waterproof, and weather-resilient. Available in non decorative, single sided, and double panel formats, they are treated for long lasting performance and priced for accessibility.

Specialty plywood: The Green Compreg line represents Greenplys industrial-grade capability at its most robust. Greenply produces industrial grade plywood designed for high-stress applications across construction, transportation, engineering, and energy infrastructure, these panels deliver exceptional compressive strength and resilience, specially built for environments where performance cannot be compromised.

PVC products: Greenplys range of PVC/WPC boards and doors is eco friendly, lead free, and low maintenance. With waterproof and fireproof qualities, they provide sustainable, practical solutions for modern interiors.

Medium density fibreboard (MDF):

Greenplys MDF division is powered by PROD-IQ NEO TECH - a collaboration with German engineering leader Siempelkamp — ensuring every board meets the highest standards of precision, consistency, and structural integrity. The portfolio addresses the full range of application requirements

CARB P2 MDF: Produced using renewable energy, these MDF sheets meet zero emission standards, making them safe and sustainable for residential and commercial interiors.

Boil Pro 500 MDF: Enhanced with HydroFireBloc technology, this MDF is both water resistant and fire resistant, ideal for demanding environments such as restrooms, partitions, and transport interiors.

Pre laminated MDF: Available in multiple textures and finishes, these boards come in interior and exterior grades, suited for cabinets, modular furniture, and eco friendly decor solutions.

Interior and Exterior MDF: Interior MDF is tailored for exhibitions, furniture, and decorative use, while exterior MDF offers moisture resistance for kitchens, bathrooms, and outdoor applications. Both are manufactured with renewable energy for sustainable performance.

HDMR 710 MDF: Designed for high moisture settings, HDMR 710 provides dimensional stability and load bearing strength, making it ideal for vanities, kitchen units, and other intensive use areas. It comes along with industry first 20 years Warranty in HMR grade MDF.

Furniture hardware: Through its joint venture with Europes Samet Group, Greenpiy delivers advanced furniture hardware systems - hinges, slides, drawer assemblies, and lift up mechanisms. Produced with robotic precision, these components meet global standards for durability and functionality.

Business strengths Brand reputation and a long track record of operation:

With nearly four decades of presence in the interior infrastructure space, Greenpiy has built a reputation for reliability and consistent quality. The brand enjoys strong consumer trust and high recall across the market.

Broad product portfolio: By expanding its range of offerings, Greenpiy has opened new revenue streams while reinforcing its leadership position.

Its diversified portfolio enables the company to meet evolving customer needs and sharpen its competitive edge.

Strategically located facilities:

The placement of Greenplys manufacturing units has been instrumental in driving efficiency. Lower costs, streamlined supply chains, and enhanced service capabilities ensure smooth delivery nationwide. Its MDF plant, uniquely positioned in Western India, adds further distribution and operational advantages.

Pan-India distribution strength:

An extensive distribution network gives Greenpiy reach across the country. Supported by a responsive supply chain and quick turnaround times, the company ensures easy access to its products and maintains a strong national presence.

Sustainability commitment:

Investments in plantations form the backbone of Greenplys sustainability driven growth model. This approach secures longterm raw material supply while supporting farming communities. By embedding ESG principles into its operations, the company sets benchmarks for responsible business and longterm value creation.

Leadership and talent: Greenpiys growth is steered by a capable management team that emphasises diversity and skill development.

Their collective expertise ensures preparedness for future challenges and sustained success.

Industry relationships: The Company maintains strong ties with architects, designers, contractors, carpenters, and retailers. These relationships provide insights into preferences and challenges, enabling product customization and deeper market relevance.

Digital and automation focus:

Greenplys push toward automation and digital transformation has elevated efficiency and productivity. Advanced technologies have streamlined processes, optimised resources, and enhanced the companys ability to respond to shifting market demands with precision and agility.

Core strategies

Expanding product range: Greenpiy continues to broaden its portfolio, introducing new offerings that allow it to serve a wider spectrum of customers and strengthen its market presence.

Innovation at the core: A strong focus on innovation has led to the creation of forward looking products that redefine industry benchmarks.

By consistently raising standards of quality and design, the company has built lasting trust and loyalty among its customers.

Responsible sourcing and sustainable production:

Committed to ethical practices, Greenpiy sources raw materials responsibly and adheres to strict environmental norms in manufacturing. Its sustainability drive includes extensive plantation initiatives, with over 90 million saplings planted across more than 1.1 lakh acres nationwide.

Employee empowerment: Recognizing the importance of its workforce, Greenpiy fosters a culture of engagement, growth, and innovation. This approach motivates employees to excel, ensuring superior customer service and longterm business success.

Customer first philosophy: Builders, architects, designers, contractors, carpenters, and homeowners form Greenplys diverse clientele. By offering tailored solutions and value added services, the company enhances satisfaction and delivers expert guidance across varied needs.

Technology driven growth: Automation and digitisation have transformed Greenplys supply chain and manufacturing capabilities. Advanced digital systems have streamlined operations, optimised resources, and strengthened its ability to respond swiftly to market demands.

Strategic manufacturing footprint:

Greenplys plants are strategically located across India, providing proximity to raw material sources, cost efficient labor, and logistical advantages. This positioning enhances competitiveness and ensures effective nationwide distribution.

Threats

Competitive pressures: Greenpiy operates in a highly contested market, facing both domestic and international rivals. Competitors offering similar products at lower prices or introducing differentiated, innovative features pose ongoing challenges to its market share.

Raw material risks: Volatility in the supply or cost of raw materials can impact profitability and disrupt operations. Such fluctuations threaten production consistency and complicate cost management.

Regulatory environment: Shifts in government policies or regulations have the potential to reshape the industry landscape. These changes may directly affect Green plys operations and influence its longterm strategic direction.

Technological disruption: Advances in manufacturing technologies could render existing processes less effective. To remain competitive, the company must adapt and invest in modernization initiatives.

Changing consumer preferences:

Evolving customer tastes, such as a move toward alternative materials or new construction methods, could reduce demand for traditional plywood. Greenpiy must continue to innovate and adjust its offerings to align with these shifts.

Financial overview (Consolidated)

Income statement analysis

• The Companys total income rose to Rs.2,75,763.15 Lakh in FY 2025-26, against the previous years figure of Rs.2,50,407.50 Lakh in FY 2024-25. This represents a YoY growth of 10.1%.

• EBITDA from continuing operations also rose to Rs.27,053.28 Lakh in FY 2025- 26, against the previous years value of Rs.23,765.28 Lakh in FY 2024-25. This indicates a YoY increase of 13.8%.

• The Company recorded an EBITDA margin of 9.9% as compared to 9.6% in FY 2024-25.

• There was a decrease in the profit after tax from continuing operations to Rs.8,977.98 Lakh in FY 2025-26, as compared to Rs.9172.37 Lakh in FY 2024- 25, due to one-off provisions.

• PAT from continuing operations margin stood at 3.3% in FY 2025-26 from 3.7% in FY 2024-25.

Balance Sheet analysis

• Total debt amounted to Rs.48,915.37 Lakh as of March 31,2026, compared to Rs.48,826.17 Lakh as of March 31, 2025.

• Net debt stood at Rs.46,128.05 Lakh as on March 31, 2026, compared to Rs.46,359.07 Lakh as on March 31, 2025.

• As of March 31, 2026, the net debt- equity ratio stood at 0.52 times, compared to 0.57 times as of March 31, 2025.

• The net working capital days as of March 31, 2026 were 43 days, as compared to 44 days reported on March 31, 2025.

• The return on capital employed (Pre-tax) was 13.5% as of March 31, 2026, as compared to 12.6% recorded on March 31, 2025.

• As of March 31, 2026, the return on equity was 10.54%, as compared to 12.0% recorded on March 31, 2025.

Key operating metrics - Plywood
Particulars	FY 2025-26	FY 2024-25
Annual capacity (million sq. mtrs)	52.80	52.80
Production (million sq. mtrs)	50.87	46.01
Sales volume (million sq. mtrs)	82.17	75.86
Capacity utilisation (%)	96	87

MDF

Particulars	FY 2025-26
Annual capacity (CBM)	3,00,000	2,40,000
Production volume (CBM)	1,81,476	1,89,964
Sales volume (CBM)	2,03,772	1,68,264
Capacity utilisation (%)	74*	79

*74% is considering the 45-day shutdown

Details of significant change in key financial ratios

Particulars	FY 2025-26	FY 2024-25
Gross debt-equity ratio (times)	0.55	0.60
Debt service coverage ratio (times)	1.82	2.1
Return on equity ratio (%)	10.54	12.0
Trade receivables turnover ratio (times)	7.50	8.69
Trade payables turnover ratio (times)	3.97	4.84
Net working capital turnover ratio (times)	14.29	13.86
Return on capital employed (ROCE) (%) (Pre-tax)	13.5	12.6
Inventory turnover ratio (in times)	6.21	5.75
Net profit ratio (%)	3.28	3.69

Business outlook

Greenply steps into the future with confidence, driven by operational discipline and bold strategic vision. With a legacy of quality and innovation, it has earned its place as a trusted name in the plywood industry.

A customer first philosophy, a diverse product mix, and a strong brand identity together provide a lasting edge in a competitive market.

The Companys entry into Medium Density Fibreboard (MDF) marked a turning point, achieved in just 15 months. This expansion opened doors to a premium segment and gave its dealer network wider opportunities. Advanced technologies, including PRODIQ NEO—Indias first Al enabled measurement system—are now embedded in production, ensuring precision and durability in MDF offerings. Further diversification came through a partnership with Samet, a global leader in furniture hardware, enabling Greenply to deliver high quality accessories that raise standards in design, sustainability, and engineering.

Its environmental initiatives reinforce this forward looking approach. Greenply became Indias first company to secure FSC FM certification, underscoring its commitment to sustainable forest management.

By introducing the nations first Zero Emission (E 0) panels, aligned with CARB and ERA standards, it has set new benchmarks for indoor air quality and safety. Innovation continues to define its journey, with breakthroughs such as 4 Press Technology, Penta 5 Tech for seamless finishes, Virashields antimicrobial protection, and eco conscious E 0 panels. With a strong market presence, a pipeline of pioneering solutions, and enduring brand goodwill, Greenply is well positioned to reinforce and extend its leadership in Indias interior solutions landscape.

Risk	Risk description	Mitigation
Environment risk	A weak or slowing economy can dampen consumer confidence, reduce disposable income, and negatively affect spending in real estate, home furnishings, and decor categories.	• Strengthen supply chain resilience to ensure operational continuity.
		• Integrate environmental, social, and governance (ESG) principles into core business practices.
		• Invest in robust cybersecurity systems to safeguard digital operations.
		• Manage exposure to raw material volatility through strategic sourcing and longterm sustainability initiatives.
Policy and compliance risk	Regulatory changes, particularly those impacting raw material sourcing, can disrupt manufacturing operations and reduce efficiency.	Greenply has strengthened resilience by adopting responsible sourcing practices. Its manufacturing facilities are strategically located near plantation zones, ensuring reliable access to compliant raw materials and supporting uninterrupted production.

 

Risk	Risk description	Mitigation
Market competition risk	The entry of new players, rising imports, and rival innovations can intensify competition, putting pressure on pricing and margins.	Greenpiy has sustained its leadership by building a diverse product portfolio across plywood and allied categories. This breadth allows the company to differentiate effectively, respond quickly to shifting market trends, and maintain a strong presence despite competitive pressures.
Human capital risk ?@?
	A shortage of skilled professionals or challenges in retaining talent can hinder productivity and slow organisational growth.	Greenpiy addresses this risk by offering competitive compensation packages and investing in its workforce through regular training, upskilling, and development programs. These initiatives foster motivation, build future ready capabilities, and ensure a committed team that drives sustained business excellence.
Supply chain risk WS1	Geopolitical tensions or rising fuel costs can drive up logistics expenses and disrupt the smooth functioning of supply chains.	Greenpiy has built a structured logistics framework that ensures seamless movement from procurement through to product delivery. Its advanced material tracking systems enhance visibility and efficiency, strengthening resilience across the supply chain.
W
Resource availability risk @?D	Dependence on a steady supply of raw materials exposes the company to potential shortages or disruptions, which could affect production continuity.	Greenpiy has minimised this risk by situating its manufacturing facilities close to major raw material sources. This strategic positioning ensures reliable access, smooth procurement, and reduced vulnerability to supply interruptions.
Brand risk	Negative publicity or reputational setbacks can erode consumer trust and directly affect revenue streams	Greenpiy adopts a proactive brand management approach, continuously monitoring for reputational risks and responding swiftly to emerging issues and proactively working on brand protection. This vigilance helps safeguard its market image and sustain customer confidence.

Internal control systems and their adequacy

Greenpiy has established a comprehensive internal control system tailored to the scale and complexity of its operations. Standardised procedures and safeguards are in place to protect assets and enhance efficiency. The framework is seamlessly aligned with the companys corporate governance principles, ensuring strict compliance with policies while supporting effective risk management across ail functions.

IT controls system

Greenpiy has strengthened its operational backbone through the adoption of advanced technologies and digitisation, significantly boosting efficiency across functions. By leveraging data driven insights, the company makes informed decisions while enhancing the overall customer experience. Continuous investment in digital infrastructure underscores its commitment to improvement and agility. At the same time, Greenpiy has built a resilient cyber security framework, implementing Active Directory (AD) policies for password protection, email security gateways for pre delivery scans, and SaaS based anti malware solutions for real time monitoring of threats and viruses. Together, these measures ensure secure, streamlined, and future ready operations.

Empowering our human capital

Greenply has earned recognition as a Great Place to Work for three consecutive years, underscoring its commitment to employee satisfaction and a supportive workplace culture. The Company empowers individuals to take decisions aligned with their responsibilities, fostering trust and accountability across teams.

Its hiring practices are strictly non discriminatory, promoting diversity and inclusion throughout the organisation. Recruitment is further strengthened through an employee referral system, encouraging current staff to recommend potential candidates. To retain talent, Greenply provides competitive compensation and benefits, while also conducting annual employee engagement surveys over the past three years. Insights from these surveys are shared with departmental heads, enabling informed actions that enhance well being and sustain high levels of engagement.

Implementing HSE initiative

HSE management forms an integral pillar of Greenplys sustainability agenda. The Company not only adheres to all industry-specific regulations but also actively strengthens its practices to safeguard people and the environment.

To protect its workforce, Greenply equips employees working near high-risk machinery such as boilers and dryers with essential safety gear, including shoes and gloves. Equipment with potential hazards is securely covered to minimise risk.

Regular HSE audits, conducted by the HSE manager in collaboration with the HR team, reinforce compliance and ensure a culture of safety across operations.

By embedding health, safety, and environmental responsibility into every process, Greenply places the well-being of its employees, communities, and society at the heart of its mission.

Caring for the community

The Greenply Foundation extends the companys social responsibility efforts, with its FY 2023-24 focus on empowering women, supporting economically disadvantaged groups, and strengthening collaborative project management. Among its notable initiatives is a healthcare program delivered through a Mobile Medical Van serving villages near Tizit in Mon District, Nagaland.

This project provides essential diagnostic, medicinal, curative, referral, and counseling services to rural communities, while also raising awareness about healthy living and hygiene. By enhancing access to healthcare in remote areas, the initiative reflects Greenplys commitment to inclusive development and community well-being.

Being a responsible corporate entity

Greenply has undertaken extensive afforestation efforts, covering nearly 60,000 acres across India and planting more than 90 million saplings to date. This large-scale initiative underscores the Companys deep commitment to environmental stewardship, with a clear target of reaching 100 million saplings by 2028.

To achieve this vision, Greenply works closely with state governments and local communities, ensuring grassroots participation and shared ownership of the program.

At its Tizit facility in Nagaland, the Company has launched the Green- Rise initiative—an eco-restoration and plantation drive designed to create lasting ecological impact while fostering self-reliance among local communities. As a symbolic gesture, each sapling planted under this program honors an architect associated with the wood panel industry, serving as a living tribute to their contributions.

Cautionary statement

The Companys Management Discussion & Analysis includes ‘forward-looking statements as defined by relevant securities laws and regulations. The Companys performance may vary significantly from expected results due to various factors such as global and domestic economic conditions, successful strategy implementation, R&D, growth plans, technological advancements, changes in laws and regulations, rising competition, and customer, supplier, and industry conditions.

The Company is not required to publicly update, alter, modify, or revise forward-looking statements based on later developments, new information, or future events unless required by applicable laws.