Century Plyboard (I) (CPBI IN) – Q4FY26 Result Update – Capacity Expansion continues Amid Stable Demand – Downgrade to ‘Accumulate’
Published on 25 May 2026
CPBI has refrained from providing FY27 guidance due to geopolitical uncertainties and volatile raw material conditions. CPBI undertook a price hike of 7%/15% in plywood/MDF segment respectively. Plywood plants are currently operating at near full utilization, leading the company to undertake ~30% capacity expansion in FY27 through a combination of brownfield additions across existing facilities and the commissioning of the Hoshiarpur plant, while the Chennai expansion is expected to be completed by Jul’26. MDF utilization currently stands at ~80–85%, with the company undertaking debottlenecking at the South MDF plant to add ~60k–70k CBM capacity by end-Q1FY27. We expect overall Revenue/EBITDA/PAT CAGR of 14.4%/20.9%/27.4% with Plywood/Laminate/MDF volume CAGR of 12.0%/12.1%/17.1%. We upward revise our earnings estimates for FY27/FY28 by 1.6%/1.3% and downgrade our rating to ‘Accumulate’ from ‘BUY’ due to recent run up in the stock prices, with TP of Rs 862, valuing at 35x Mar’28E.
