EPS of $-2.82 decreased by 216.1% from previous year
Gross margin of 47.9%
Net income of -346.24M
""The ongoing inflationary pressures and global supply chain disruptions have particularly affected our raw material sourcing, affecting our profitability."" - Management Team
Greenpanel Industries Limited (GREENPANEL.BO) QQ1 2026 Results - Substantial Challenges Lead to Deteriorating Performance
Executive Summary
In QQ1 2026, Greenpanel Industries Limited faced a significant decline in financial performance, culminating in a net loss of INR 346.24 million, representing a dramatic year-over-year decline of 216.17%. The revenue shrunk to INR 3.28 billion, down 17.25% compared to the previous year, as the company's operating environment remained challenging due to market dynamics and increased competition in the paper lumber sector. Management highlighted that elevated raw material costs, coupled with a sluggish demand in the housing and furniture segments, severely impacted profitability, leading to an operating loss of INR 413.04 million.
Despite these adverse results, management emphasized ongoing efforts to enhance operational efficiencies and explore cost-saving initiatives aimed at restoring margins over the next quarters. Investors should monitor Greenpanel's strategic responses to these challenges, as they weigh the potential recovery against the backdrop of ongoing market pressures.
Key Performance Indicators
Revenue
3.28B
QoQ: -8.69% | YoY:-17.25%
Gross Profit
1.57B
47.88% margin
QoQ: 0.67% | YoY:-26.30%
Operating Income
-413.04M
QoQ: -1 916.21% | YoY:-202.12%
Net Income
-346.24M
QoQ: -507.14% | YoY:-216.17%
EPS
-2.82
QoQ: -508.70% | YoY:-216.05%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: INR 3.28 billion, down 17.25% YoY and down 8.69% QoQ.
**Gross Profit**: INR 1.57 billion, with a gross profit margin of 47.88%, reflecting a YoY decline of 26.30% but a slight improvement of 0.67% QoQ.
**Operating Income**: Operating loss of INR 413.04 million, indicating a drastic 202.12% decline YoY and a critical fall of 1,916.21% QoQ.
**Net Income**: Net loss registered at INR 346.24 million, which represents a staggering 216.17% decline from the previous year, with EPS at -INR 2.82.
**Key Ratios**: The gross profit ratio of 47.88% suggests a reduced ability to produce profit from sales compared to previous periods, highlighting persistent cost pressures.
Financial Highlights
### Key Financial Metrics
- Revenue: INR 3.28 billion, down 17.25% YoY and down 8.69% QoQ.
- Gross Profit: INR 1.57 billion, with a gross profit margin of 47.88%, reflecting a YoY decline of 26.30% but a slight improvement of 0.67% QoQ.
- Operating Income: Operating loss of INR 413.04 million, indicating a drastic 202.12% decline YoY and a critical fall of 1,916.21% QoQ.
- Net Income: Net loss registered at INR 346.24 million, which represents a staggering 216.17% decline from the previous year, with EPS at -INR 2.82.
- Key Ratios: The gross profit ratio of 47.88% suggests a reduced ability to produce profit from sales compared to previous periods, highlighting persistent cost pressures.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.28B
-17.25%
-8.69%
Gross Profit
1.57B
-26.30%
0.67%
Operating Income
-413.04M
-202.12%
-1 916.21%
Net Income
-346.24M
-216.17%
-507.14%
EPS
-2.82
-216.05%
-508.70%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
#### Management Insights
- Market Dynamics: "The ongoing inflationary pressures and global supply chain disruptions have particularly affected our raw material sourcing, affecting our profitability."
- Strategic Direction: "We are actively working on consolidating our cost structures and enhancing operational efficiency. Steps are being taken to realign our product offerings to cater to the evolving market demand, especially in the modular furniture segment."
"The ongoing inflationary pressures and global supply chain disruptions have particularly affected our raw material sourcing, affecting our profitability."
— Management Team
"We are actively working on consolidating our cost structures and enhancing operational efficiency. Steps are being taken to realign our product offerings to cater to the evolving market demand, especially in the modular furniture segment."
— Management Team
Forward Guidance
Management has indicated a cautious outlook for the upcoming quarters. While operational efficiencies and cost-cutting measures are expected to take effect, the uncertainty around raw material prices and competitive pressures will likely continue to weigh on profitability. Analysts should focus on monitoring any strategic collaborations or innovations that the company may pursue to regain footing in a challenging market. Specific targets have not yet been set but indications suggest gradual improvement may be seen by the end of the fiscal year, assuming market conditions stabilize.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
GREENPANEL.BO Focus
47.88%
N/A
N/A
N/A
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the current financial performance characterized by escalating losses and declining revenue, investors should adopt a cautious stance towards Greenpanel Industries Limited. While the company's efforts to streamline operations and innovate its product offerings present opportunities, significant external pressures and internal operational challenges may hinder near-term recovery. Investors need to assess management’s ability to implement effective strategies and the market response to these strategies before considering any investment in GREENPANEL.BO.
Key Investment Factors
Growth Potential
The company's expansion into new product segments such as modular furniture and focus on enhancing operational efficiencies indicate potential growth avenues. However, success is contingent upon efficient cost management and reestablishing demand with consumers.
Profitability Risk
Key risks include prolonged inflationary pressures affecting raw material costs, increased competition in the market leading to price wars, and the company's exposure to cyclical fluctuations in the construction and housing sector.
Financial Position
Greenpanel's financial position currently reflects significant distress, with declining revenues and increasing operational losses; however, the company's long-term viability appears potentially supported by its recent initiatives in product line diversification and cost management strategies.
SWOT Analysis
Strengths
Established brand presence in the Indian market for plywood and MDF products
Diversified product portfolio including fire retardant MDFs and decorative veneers
Strategic operational initiatives aimed at improving efficiency
Weaknesses
Significant operating losses reflecting poor current profitability
High dependency on raw material sourcing susceptible to global market fluctuations
Recent decline in sales indicates potential operational inefficiencies
Opportunities
Potential expansion into growing modular furniture market
Increasing consumer interest in sustainable and eco-friendly building materials can boost demand
Strategic partnerships can help in enhancing distribution channels and market access
Threats
Intense competition from both domestic and international players
Economic downturn affecting consumer spending in construction and home improvement sectors
Regulatory changes affecting wood sourcing and environmental compliance