Brokerage firm Anand Rathi has reduced the target price for Greenpanel Industries to Rs 250 from Rs 320, citing margin pressure. While the company reported revenue growth in the second quarter, profitability was impacted by intense domestic pricing competition.
Greenpanel Industries is facing a downward revision in its target price, with brokerage firm Anand Rathi setting the new target at Rs 250, compared to its previous level of Rs 320. This adjustment follows the company's second-quarter financial results for fiscal year 2027, which highlighted a struggle to maintain profitability despite growth in sales.
In the second quarter ending September 30, 2026, Greenpanel reported revenue of Rs 407.3 crore, representing a 4.6% increase compared to the same period last year. This growth was supported by strong retail sales volumes. However, the company faced significant pressure on its operating margins, which fell to 7.5% from 10.2% in the year-ago quarter. This decline is largely attributed to aggressive pricing competition within the domestic Medium-Density Fiberboard (MDF) market, where structural excess capacity has forced manufacturers to lower prices to maintain market share.
Alongside the financial performance, the company announced that its Chief Sales Officer, Prakash Rameshbhai Tripathi, will resign effective November 5, 2026. Such leadership changes can be a point of interest for investors as the company navigates a challenging business environment. On the balance sheet side, the company has managed to reduce its net debt to Rs 133 crore as of September 30, 2026, down from Rs 156 crore at the end of March 2026.
Looking ahead, management has expressed optimism regarding volume recovery in the second half of the fiscal year. The company expects a 15-17% growth in volumes in the upcoming quarters, driven by a rebound in demand from Original Equipment Manufacturers (OEMs) and a stabilization in export activity. The domestic MDF sector, however, continues to deal with pricing challenges that analysts expect to persist as long as industry capacity remains high.
Investors may monitor the company's ability to navigate these domestic pricing pressures and maintain its volume guidance in the coming quarters. The stock closed at Rs 124.50 on November 2, 2026. The key monitorables for the near term remain the trajectory of domestic MDF prices, the impact of the leadership transition, and whether the expected recovery in OEM demand materializes to support margins.