Century Plyboards (CENTURYPLY) Q2 FY27 Profit Jumps 47% as Volume Growth Offsets Costs
Century Plyboards posted its highest-ever quarterly revenue of ₹1,780 crore in Q2 FY27, with net profit surging 46.6% year-on-year on strong volume growth across all segments.
Century Plyboards reported a 46.6% jump in net profit to ₹104 crore for Q2 FY27, driven by a record ₹1,780 crore in revenue. The growth was powered by strong volume increases across plywood, laminates, and particle board, helping to offset rising input costs.
For Century Plyboards, the September quarter was about turning new capacity into sales. After years of building plants, the company is now focused on sweating those assets, a strategy that delivered its highest-ever quarterly revenue.
Revenue rose 28.5% year-on-year to ₹1,780 crore, while net profit jumped 46.6% to ₹104 crore. The net profit margin expanded to 5.8%, up 70 basis points from last year, as profit growth outpaced the top line.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,780.0YoY +28% | 1,561.4 | 1,385.5 |
| Profit (₹ Cr) | 104.0YoY +47% | 83.3 | 70.9 |
| Net Profit Margin (%) | 5.8YoY +14% | 5.3 | 5.1 |
Volume Growth Across the Board
The story was broad-based volume growth. Executive Director Keshav Bhajanka told The Hindu BusinessLine that all categories saw strong volume increases. Plywood led with over 20% volume growth, while MDF volumes grew over 11%.
Particle board revenue tripled year-on-year, and the logistics business grew around 70%. This volume surge helped the company navigate a 45% year-on-year jump in raw material costs.
The Margin Tightrope
Managing costs remains a delicate act. The company implemented price increases across categories to pass on raw material inflation, as reported by The Hindu BusinessLine. This helped protect margins despite rising interest and depreciation expenses from its expansion phase.
The particle board segment, while growing explosively, continued to report a loss, though it narrowed significantly. The focus is now on improving utilization to lift margins in newer segments like MDF and particle board.
Funding Future Growth
Aggressive expansion continues, funded by a mix of internal accruals and debt. Total borrowings stood at around ₹1,929 crore as of September 30, up from approximately ₹1,630 crore at the end of March, according to Fortune India.
Management has outlined a ₹200 crore capex plan for FY27, focusing on plywood, with larger projects like a Uttar Pradesh plant conditional on land acquisition. The goal is to raise plywood market share from an estimated 9-10% to 15% over the next few years.
Key Points
- Century Plyboards achieved record quarterly revenue of ₹1,780 crore in Q2 FY27, driven by strong volume growth across all product categories.
- Net profit grew 46.6% year-on-year to ₹104 crore, with the margin expanding due to effective price pass-through of raw material costs.
- The company is in a high-investment phase, with borrowings rising to fund capacity expansion aimed at capturing greater market share.
- Management is targeting a plywood market share of 15% over the next four years, up from an estimated 9-10% currently.
Hexa Perspective
The quarter confirms Century Plyboards is successfully monetizing its recent capacity investments. The broad-based volume growth is a positive signal of demand strength and execution.
The key watchpoint is the trajectory of margins in the newer MDF and particle board segments as they scale. While debt has risen to fund growth, the company's ability to generate strong operating cash flow will be crucial to manage leverage while pursuing its ambitious market share targets.
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