Century Plyboards has announced robust growth projections across its key business divisions, highlighting strong expansion plans and capacity additions. The company has outlined ambitious targets for both its laminate and plywood segments, backed by strategic capacity enhancements.

Laminate Division Growth Trajectory

The company's laminate division is positioned for significant expansion, with management anticipating over 15% growth in the current year. The growth momentum is expected to accelerate further, with projections indicating 20% growth for the following year.

The company is specifically aiming for double-digit margins in the laminate segment, indicating focus on both volume growth and profitability enhancement.

Plywood Division Expansion Plans

The plywood division is projected to achieve steady growth of 5% to 7% next year. This growth will be supported by new manufacturing capacities that are set to launch in strategic locations.

Strategic Capacity Enhancement

The company's growth strategy includes significant capacity additions with new facilities launching in Hoshiarpur and Chennai. These strategic locations are expected to strengthen the company's manufacturing footprint and support the projected growth in the plywood segment.

The expansion plans demonstrate Century Plyboards' commitment to scaling operations and capturing market opportunities across its core business segments. The combination of laminate division's accelerated growth targets and plywood division's capacity-backed expansion reflects a comprehensive approach to business development.

Century Plyboards delivered robust financial performance in Q3FY26, reporting consolidated revenue of INR 1,350 crores, representing an 18.4% year-on-year growth. The company's EBITDA margin (excluding forex) improved significantly to 12.6% compared to 10.7% in the corresponding quarter last year, driven by higher volumes and operational efficiency gains.

Q3FY26 Financial Performance

The company's strong quarterly results demonstrate sustained momentum across all business segments. On a nine-month basis, FY26 revenue grew 17.3% year-on-year, showcasing consistent performance despite challenging macroeconomic conditions.

Segment-wise Performance Analysis

Plywood Business

The plywood segment achieved quarterly revenue of INR 710 crores with 14.9% year-on-year growth, supported by healthy volume growth and expanded distribution reach. EBITDA margin stood at 15.1%, benefiting from operating leverage and stable input costs.

MDF Segment

The MDF business continued its strong growth trajectory with revenue increasing 19.1% year-on-year. EBITDA margin improved to 12.1% compared to 10.7% in the corresponding quarter last year, driven by higher volumes and improved capacity utilization across plants.

Laminates Division

The laminates segment reported quarterly revenue of INR 183 crores, growing 9.6% year-on-year and 13% on a nine-month basis. EBITDA margin stood at 7.7%, supported by better cost absorption and improved product mix.

Particleboard Segment

With improved capacity utilization and higher sales volumes, the particleboard segment achieved its highest-ever quarterly sales of INR 65 crores, reaching EBITDA breakeven.

Strategic Growth Targets and Expansion Plans

Century Plyboards maintains its ambitious revenue target of INR 12,000 crores by FY31 through consistent 18% annual growth. The company expects FY27 to deliver results similar to or better than FY26, with management expressing confidence in sustaining strong performance momentum.

Capacity Expansion Initiatives

Plywood Expansion:

• Hoshiarpur plant: 60,000 CBM capacity, starting operations with 30,000 CBM in Q3 FY27
• Chennai unit expansion: Increasing total capacity to 150,000 CBM by Q3 FY27
• Uttar Pradesh facility: Planned 120,000 CBM capacity with INR 330 crores investment

MDF Capacity Enhancement:

• Current capacity expansion: Additional 70,000 cubic meters expected in Q1 FY27
• Uttar Pradesh project: Over 300,000 cubic meters capacity with INR 800 crores investment
• Total timeline: 2.5 years from land acquisition

Management Outlook and Market Positioning

The MDF segment continues to show exceptional promise, with management projecting over 25% growth in FY26 and strong performance expected to continue in FY27. The company targets achieving over 15% EBITDA margin in the near term while setting a long-term goal of 20% EBITDA margin.

Management emphasized that pricing in the MDF segment has bottomed out, with expectations of gradual improvement as raw material costs decline due to increased plantation activities across the country. The company's diversified product portfolio, strong brand equity, and expanding distribution network position it well for sustained growth in the building materials and interior solutions industry.