Century Plyboards has submitted its Business Responsibility and Sustainability Report for FY26 to the stock exchanges. The filing, signed by Company Secretary Sundeep Jhunjhunwala on August 24, 2026, discloses consolidated environmental, social, and governance performance across the company’s Indian operations.

The report highlights a significant shift in energy sourcing. Renewable energy contributed 18% of total electricity consumption in FY26, marking a 62% year-on-year increase. This growth was driven by installed solar capacities of approximately 14.26 MW across factories and a Renewable Energy Power Purchase Agreement at Chennai facilities.

Operational Metrics

The company reported a standalone turnover of ₹4,645.97 crore and net worth of ₹2,679.98 crore for CSR applicability purposes. Operations span 16 national plants and 27 offices. Approximately 98% of primary raw material timber is sourced from agroforestry or farm forestry, with over 50% from FSC-certified sources.

Safety and Governance

Safety performance improved significantly. The Lost Time Injury Frequency Rate for workers fell to 1.79 per million person-hours worked in FY26, down from 4.15 in FY25. Total recordable work-related injuries for workers decreased to 52 from 98. There was one fatality among workers in FY26, compared to none in the prior year.

The board includes 16 directors, with 25% female representation. Key Management Personnel stands at 10, with 10% female participation. The company maintains ISO 45001:2018 certification at five facilities and aims to achieve Net Zero Scope 1 and Scope 2 emissions by FY2050.

Century Plyboards (India) Limited reported a record consolidated quarterly revenue of ₹1,561.38 crore for the quarter ended June 30, 2026, marking a 33.5% year-on-year increase. The plywood manufacturer’s Profit After Tax (PAT) surged 57% to ₹83.30 crore, up from ₹52.92 crore in the corresponding period last year, driven by robust volume growth across core segments and improved operational efficiency. This performance underscores strong demand momentum despite broader industry headwinds.

The company’s EBITDA margin, excluding forex losses, improved to 13.0% from 12.5% in Q1FY26, reflecting better cost management and higher realisation rates. Standalone net profit rose 39% to ₹944.87 crore, while standalone revenue from operations grew 32% to ₹13,587.24 crore. The Board of Directors, led by Managing Director & CEO Sanjay Agarwal, approved the unaudited financial results on July 31, 2026. The results were reviewed by the Audit Committee and subjected to limited review by the Statutory Auditors.

Segment Performance Highlights

Plywood remained the primary growth engine, with revenue growing 32.4% YoY to ₹854.59 crore and volumes increasing 28.8% to 1,36,995 CBM. The segment delivered an EBITDA margin of 16.9% (excluding forex), supported by healthy margin expansion. Laminates maintained strong momentum, with revenue rising 14.7% YoY to ₹196.24 crore, despite an 8.4% decline in volume due to a shift towards higher-thickness materials. The segment’s EBITDA margin stood at 10.2%.

Medium-Density Fibreboard (MDF) reported a sequential revenue decline of 6.2% to ₹331.73 crore due to a planned shutdown at one plant for capacity expansion, though it maintained strong YoY growth of 28.9%. Particle Board (PB) emerged as a high-growth segment, with revenue surging 159.1% YoY to ₹86.18 crore, driven by a 155.7% increase in volume. However, the PB segment reported negative EBITDA of -₹13.50 crore annually, indicating ongoing investment phase challenges.

Capacity Expansion and Strategic Initiatives

Century Plyboards is strengthening its plywood business through capacity expansion. The 60,000 CBM per annum greenfield plywood plant at Hoshiarpur is expected to commence operations in Q3 FY27. Additionally, the Chennai brownfield expansion increased capacity from 8,000 CBM per month in Q1 to 10,000 CBM per month in Q2, set to rise to 12,500 CBM per month from Q3 FY27. In MDF, the Andhra Pradesh plant capacity was expanded from 700 CBM per day to 950 CBM per day during the quarter.

To mitigate higher chemical input costs, the company implemented a 7% price increase in April for plywood. Price hikes varied across other segments, with MDF seeing close to 15% and laminates around 10%, though some increases were partially rolled back as raw material prices fluctuated. Management highlighted a new "Total Cover Assurance Program" for Club Prime Plywood, offering full compensation for furniture costs if product defects arise within 10 years, aiming to reinforce consumer trust.

Balance Sheet and Working Capital

Total consolidated debt increased to ₹1,644.21 crore from ₹1,531.26 crore in FY26, primarily due to higher short-term bank debt of ₹811.79 crore. Shareholder’s equity rose to ₹2,713.32 crore. The cash conversion cycle improved significantly to 68.86 days from 81.19 days in FY26, indicating better working capital management. Debtor days reduced to 39.62 from 41.77, while inventory days decreased to 39.04 for raw materials and 26.90 for finished goods.

What the Numbers Show

The divergence between volume growth and revenue growth in the laminates segment highlights a successful strategy shift towards premium, higher-thickness products, boosting average selling prices by 26.7% YoY. Meanwhile, the surge in particle board volumes (+155.7%) contrasts sharply with its negative annual EBITDA, suggesting this segment is still in an investment phase where scale is being prioritized over immediate profitability. The overall improvement in EBITDA margins (ex-forex) to 13.0% demonstrates the company’s ability to pass on cost increases and optimize operations across its mature plywood and MDF businesses.