Duroply Industries has reported a robust financial performance for the second quarter of fiscal year 2026, showcasing significant growth in revenue and profitability. The company's strategic focus on contract manufacturing has yielded positive results, contributing to overall growth despite a slight decline in in-house manufacturing.

Financial Highlights

Key Takeaways

1. Revenue Growth: Duroply Industries achieved a total revenue of ₹104.40 crores in Q2FY26, marking a 15.00% year-on-year increase. This growth was primarily driven by the company's contract manufacturing segment.

2. Contract Manufacturing Surge: The contract manufacturing division experienced a remarkable 49.40% surge in revenue, reaching ₹51.58 crores. This segment has become a significant contributor to the company's overall growth strategy.

3. In-house Manufacturing Decline: While the contract manufacturing segment flourished, the in-house manufacturing division faced a 6.10% decline in revenue. The company has not disclosed specific figures for this segment.

4. Profitability Boost: Duroply Industries reported a substantial 133.00% jump in profit before tax, which stood at ₹2.67 crores for the quarter.

5. Margin Improvement: The company's EBITDA margin improved from 4.40% in Q2FY25 to 6.20% in Q2FY26, indicating enhanced operational efficiency.

Management Outlook

The management of Duroply Industries has expressed optimism about the company's future performance. They have set targets for:

• Mid-teens growth in the coming quarters
• Further expansion of EBITDA margin to 6.50%

These targets suggest that the company is focused on maintaining its growth trajectory while improving profitability.

Investor Communication

In line with its commitment to transparency, Duroply Industries conducted an earnings webinar on November 17, 2025, following the declaration of its unaudited financial results for Q2FY26. The transcript of this webinar has been made available on the company's website ( www.duroply.in ), providing investors with detailed insights into the company's performance and strategy.

As Duroply Industries continues to leverage its contract manufacturing capabilities and work on improving its in-house manufacturing segment, investors and market observers will be keenly watching the company's ability to maintain its growth momentum and achieve its targeted margin expansion in the upcoming quarters.

Duroply Industries Limited , a leading player in India's plywood manufacturing sector, has reported a significant increase in its financial performance for the second quarter of fiscal year 2026, along with a notable corporate action.

Financial Highlights

For the quarter ended September 30, 2025, Duroply Industries posted a net profit of Rs 24.08 crore, marking a substantial 55.5% increase from Rs 15.49 crore in the previous quarter. This impressive growth in profitability comes alongside a 11.7% quarter-on-quarter increase in revenue, which rose to Rs 104.49 crore from Rs 93.54 crore in Q1 FY26.

The company's performance shows significant improvement when compared to the same quarter of the previous year:

All figures in Rs crore

Operational Performance

Duroply Industries demonstrated strong operational efficiency, with its EBITDA margin improving to 6.18% in Q2 FY26, up from 5.76% in Q1 FY26 and 4.52% in Q2 FY25. This improvement in margins, coupled with revenue growth, indicates the company's ability to manage costs effectively while expanding its business.

Corporate Action: Warrant Conversion

In a significant move, Duroply Industries converted 9,85,220 warrants into an equivalent number of equity shares. This conversion was executed at an issue price of Rs 203 per warrant, raising approximately Rs 1,999.99 crore. The transaction was completed on September 25, 2025, following the receipt of the balance subscription money representing 75% of the issue price, amounting to Rs 1,499.99 crore.

As a result of this conversion, the company's paid-up equity share capital has increased to Rs 108.51 crore. The newly issued shares rank pari passu with the existing equity shares of the company.

Management Commentary

Akhilesh Chitlangia, Managing Director and Chief Executive Officer of Duroply Industries, commented on the results: "We are pleased to report a strong second quarter performance driven by broad-based momentum across our portfolio. Revenue grew by 15% in Q2 and 12% for H1, underscoring the effectiveness of our focused strategy and consistent outperformance of the industry average."

He added, "With a sharper organizational structure, improved margins, and sustained demand momentum, we remain confident of accelerating our growth trajectory in the coming quarters while maintaining our focus on profitability and financial discipline."

Future Outlook

The company's improved financial performance, coupled with the successful conversion of warrants, positions Duroply Industries for potential growth. The additional capital raised through the warrant conversion may provide the company with resources to invest in expansion, innovation, or debt reduction, depending on its strategic priorities.

As Duroply Industries continues to navigate the competitive plywood manufacturing sector, investors and market observers will be watching closely to see how the company leverages its improved financial position and operational efficiencies to drive long-term growth and shareholder value.