Bandhan Mutual Fund acquired 4,50,000 equity shares of Greenpanel Industries in the open market on September 1, 2026.

The acquisition increased the mutual fund's total holding to 7.51% of the company's paid-up capital. This rise triggered a disclosure under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as the stake increased by more than 2% from the last reported level.

Holding Details

Prior to this transaction, Bandhan Mutual Fund held 87,63,954 shares, representing 7.15% of the voting capital. The fund had previously reported a holding of 5.15% on April 19, 2024.

The acquisition was executed through open market purchases. There were no warrants, convertible securities, or encumbrances associated with these holdings. The total equity share capital of Greenpanel Industries remained unchanged at Rs. 12,26,27,395.

Greenpanel Industries reported a net profit of ₹1.23 crore for the quarter ended June 30, 2026, marking a significant turnaround from the net loss of ₹34.62 crore recorded in the corresponding quarter of the previous year. The company's revenue from operations rose to ₹349.9 crore, supported by robust demand in its medium density fibreboards (MDF) segment and improved operational efficiency. This profitability signals strengthened cost management as the company navigates the early stages of FY27, despite recording zero export sales due to geopolitical tensions in the Middle East.

The Board of Directors approved the unaudited financial results on August 8, 2026, following a review by the Audit Committee. The results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and reviewed by statutory auditors M/s. S. S. Kothari Mehta & Co LLP under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Management hosted an earnings call on August 11, 2026, to discuss these outcomes with investors.

Financial Performance Overview

Revenue from operations increased to ₹349.9 crore in Q1FY27, compared to ₹322.6 crore in Q1FY26. Total income stood at ₹352.42 crore, including other income of ₹2.5 crore. On the expense side, total costs were ₹350.29 crore. Key drivers included cost of materials consumed at ₹165.4 crore and employee benefits at ₹40.43 crore. Notably, finance costs decreased to ₹5.58 crore from ₹9.51 crore in the prior year period, reflecting lower borrowing costs or reduced debt burdens.

Profit before tax was ₹2.1 crore, compared to a loss of ₹47.4 crore in Q1FY26. After accounting for deferred tax expenses of ₹0.90 crore, the company emerged with a net profit of ₹1.2 crore. EBITDA came in at ₹30 million versus a loss of ₹158 million in the same quarter last year, with EBITDA margin at 8.54% compared to -4.82% in Q1FY26. Earnings per share (EPS) were ₹0.10, a stark contrast to the EPS loss of ₹2.82 in the same quarter last year.

The following table summarises the key financial metrics for the quarter:

Segment-wise Analysis

The company operates through two primary segments: Plywood and allied products, and Medium density fibreboards (MDF) and allied products. The MDF segment was the key contributor to revenue, generating ₹316.8 crore, up from ₹291.2 crore in Q1FY26. This segment also delivered an operating EBITDA margin of 10.3%, reversing a margin of 4.4% in the prior year. Domestic MDF volumes rose 12% year-on-year to 99,747 CBM, while exports dropped to zero from 13,060 CBM in Q1FY26.

The Plywood segment contributed ₹33.2 crore to revenue, slightly higher than the ₹31.5 crore reported in Q1FY26. Its EBITDA margin improved to 2.7% from 0.6% in the previous year. The improvement in the MDF segment's profitability was the primary driver behind the overall turnaround in net earnings.

Operational Insights from Earnings Call

During the earnings call, management highlighted that retail MDF revenue grew by around 20% year-on-year, offsetting a 14% degrowth in OEM sales. The company implemented phased price hikes of around 15% in April to safeguard margins against rising chemical costs, though some rollbacks occurred later due to competitive pressures. Despite high volatility in chemical and container freight costs, domestic MDF volumes grew 12% year-on-year, a trend maintained for four consecutive quarters.

Exports remained at zero as freight costs to the Middle East surged from $400-$500 to $5,500-$6,000 per container, making exports unviable. Management noted that 80-85% of previous exports were to the Middle East and that alternative markets are being explored, though they cannot fully replace lost volumes. On the plywood side, volumes increased by 10.4% year-on-year, while revenues grew by 5%.

Balance Sheet and Working Capital

Gross debt reduced to ₹317 crore from ₹353 crore at the beginning of the quarter, as the company used cash flows to deleverage. Credit ratings from ICRA were reaffirmed as A+. Working capital requirements increased slightly by 4 days, primarily due to higher inventory levels of finished goods and timber to factor in seasonality. However, the company remains 5 days leaner compared to the same period last year.

Forex losses on external commercial borrowings (ECB) for the new plant totaled ₹1.8 crore, with overall forex losses standing at ₹2.5 crore. This is a significant improvement from Q1FY26, where foreign exchange fluctuations resulted in substantial losses.

What the Numbers Show

The shift from a substantial net loss to a positive net profit is largely attributable to the MDF segment's recovery and reduced finance costs. Gross margin expanded to 52.7% from 47.0% in Q1FY26, driven by timely implementation of price hikes post chemical cost escalation, lower timber costs (saving 6-7% through species mix changes), and improved production efficiency. Operating EBITDA margin improved to 9.6% from 4.0% in the prior year, despite higher marketing spends on TV ads and trade exhibitions. The company's strategy has shifted towards maintaining price competitiveness with peers to regain market share, particularly in the OEM segment, which had been deprioritized during the peak of raw material cost volatility.

Corporate Developments

In addition to the financial results, the Board approved the reclassification of certain promoter group members as public shareholders. This includes Rajesh Mittal, Karuna Mittal, Sanidhya Mittal, and associated entities such as RS Homcon Limited and RKS Family Foundation. These members currently hold nil equity shares but seek reclassification under Regulation 31A of the SEBI LODR Regulations. The reclassification is subject to no-objection from the stock exchanges.

Shobhan Mittal, Managing Director, and Himanshu Jindal, Chief Financial Officer, led the management discussion during the conference call. Investors can access the full transcript of the call held on August 11, 2026, via the company's regulatory filings.