Century Plyboard (I) (CPBI IN) – Q2FY27 Result Update – Capacity Expansion to Support Long-Term Growth – BUY
Published on 05 Nov 2026
We maintain our ‘BUY’ rating on Century Plyboards India (CPBI). The company reported healthy growth momentum across its plywood and laminate businesses, while MDF continued to face margin pressure amid industry overcapacities. Management has guided for FY27 revenue growth of 25%+ in plywood and 20%+ in laminates, with EBITDA margins of 14–15% and 10–12%, respectively. The MDF segment is expected to deliver 16–18% revenue growth, with EBITDA margins reaching double digits by FY27, while a meaningful recovery towards ~20% is expected from FY29 onwards as industry capacity gets absorbed. The particleboard business is expected to deliver over 100% revenue growth in FY27, with margins turning double-digit by year-end. We estimate revenue/EBITDA/PAT CAGR of 15.4%/18.9%/23.2% over FY26-29E with Plywood/Laminate/MDF volume CAGR of 15.1%/4.3%/10.7% over FY26-29E. We cut our earnings estimate by 4.3%/3.6% for FY28/29E and Maintained ‘BUY’ rating revised TP of INR 772 (INR 871 earlier), based on 30x Sep’28 earnings.
