Temporary raw material cost pressure in MDF
MDF margins saw a slight moderation due to temporary cost pressures on timber (floods in north) and chemicals (global commodity movements). Management expects stabilization in a month.
CENTURYPLY / Q2-FY26 / risks
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Century Plyboards (India) · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
medium
MDF capacity constraint before line extension
With MDF utilization near peak (85% in Q2) and demand growing 15-20%, capacity may be constrained until the line extension in H1 FY27. Management acknowledged internal deliberations but no concrete plan for further expansion.
Particle board ramp-up risk
New particle board plant is in early ramp-up phase with EBITDA under pressure due to high fixed costs. Achieving 40% revenue growth guidance depends on successful ramp-up to 55-60% utilization in H2.
Competitive pressure from imports and unorganized sector
While quality assurance order has reduced imports, any relaxation could increase competition. Also, unorganized sector remains a large part of the market.