Greenply Industries received a combined tax demand and penalty of ₹2.15 crore from the Central Goods and Services Tax authorities for the period spanning FY21 to FY24. The order, issued by the Assistant Commissioner of Central Tax in Kolkata, primarily disallows Input Tax Credit availed during these fiscal years.

The regulatory filing confirms that the total tax demand amounts to ₹1,07,81,972 and an equal penalty of ₹1,07,81,972 has been levied. Applicable interest has also been confirmed under the order. The document was received by the company on October 14, 2026.

Order details and financial impact

The adjudication authority raised the demand under the relevant provisions of the Central Goods and Services Tax Act, 2017. The specific nature of the action involves the disallowance of Input Tax Credit (ITC) claimed by the company.

The company stated that there is no material impact on its financial, operational, or other activities resulting from this order.

Company response and legal stance

Greenply Industries asserted that it has fulfilled all conditions prescribed under the applicable Acts regarding the availment of ITC. The company maintains that it has a strong case based on merits.

Management indicated that it will file a rectification request and/or appeal against the said order within the prescribed timelines. The filing was signed by Kaushal Kumar Agarwal, Company Secretary & Vice President-Legal.

Greenply Industries Limited submitted its fourth Sustainability Report for FY26 to BSE and NSE on October 9, 2026. The report details the company's ESG performance, including 10.1% revenue growth and significant strides in renewable energy adoption.

The company reported total income of ₹2,757.63 crore, up from ₹2,504 crore in FY25. EBITDA stood at ₹270.53 crore with a margin of 9.90%, while Profit After Tax (PAT) was ₹89.78 crore. Despite moderated demand and pricing pressures in the wood panel industry, Greenply maintained profitability through operational efficiency and product innovation.

Environmental Performance Highlights

Greenply continues to lead in sustainable manufacturing practices. Renewable energy accounted for 90% of total energy consumption, supported by a 4 MW rooftop solar system and biomass utilization. The company achieved 100% water recycling and reuse rates across its facilities.

Key environmental metrics include:

The company sourced 100% of its timber from plantation-based agroforestry, eliminating dependence on natural forests. This strategy supports rural livelihoods and enhances carbon sequestration.

Social and Governance Metrics

Greenply invested in workforce development, delivering 98,427 training hours during FY26. The total workforce comprised 5,583 employees and workers, with female representation at 12%. Corporate Social Responsibility (CSR) expenditure totaled ₹3.13 crore, focusing on healthcare, education, and community development.

Governance standards remained robust, with 50% independent directors on the board and zero reported corruption or ethics violations. The company also reported zero data security complaints and zero fatalities among employees, though two work-related fatalities were recorded among workers.

What the Numbers Show

A divergence between revenue growth and margin expansion suggests a focus on volume-led growth amidst pricing pressures. While revenue grew 10.1%, the EBITDA margin of 9.90% indicates stable but not expanding profitability, reflecting the competitive operating environment described by management. However, the high renewable energy share (90%) likely mitigates long-term energy cost volatility, providing a structural advantage in cost management compared to peers reliant on grid power.