Duroply Industries Ltd (NSE: DUROPLY) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Akhilesh Chitlangia — Managing Director & Chief Executive Officer
Vijay Yadav — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
Good morning ladies and gentlemen. I’m pleased to welcome you on behalf of Duruply Industries Limited. I’m Audible and SKP securities to Duropli Limited Industries Limited’s Q3FY26 desired webinar. We have with us Mr. Akles Chitlangya, NBA and CEO and Mr. Vijay Kumar Yadav, CFO. Friends, this webinar has been recorded for compliance reasons and during the discussion there may be certain forward looking statements which must be viewed in conjunction with the risk that the company faces. We’ll have Mr. Chitlangya’s opening remarks followed by a Q and A session. Thank you. And over to you, Mr. Chitlanya.
Akhilesh Chitlangia — Managing Director & Chief Executive Officer
Good morning Naveen. And good morning to all participants today. Thank you for hosting this once again. Naveen, Good morning and thank you for attending a webinar for third quarter FY26. On this call we also have Mr. Vijay Kumar Yadav, our CFO. D Reply was founded in 1957 and over the years has built a strong brand in the industry and it’s recognized across the country for its high standard of quality which we have maintained over the years. Duroply recently celebrated its 69th year in operation and we are proud to have played a meaningful part in India’s.
Over the last six decades. Quarter revenue at 93.05 crores. A 3.6% growth over the same period last year. Down 11% from the previous quarter. The business reported a profit before tax of 1.37 crores, up by 13.7% from the same period last year. For the quarter, revenue from in house manufactured goods stood at 60.7 crores, 11.6% growth over the same period last year and up by 15% on a quarter on quarter basis. Revenue from a contract manufacturing site stood at 32.3 crores, down 8.7% on year on year basis and down by 37% on a quarter on quarter basis.
Gross margin this quarter stood at 37.1% up from 34.2% same period last year and up from 34.8% in Q2 FY26. Our EBITDA for the quarter stood at 5.4 crores, a 23.7% increase from the same quarter last year though down 16.4% from previous quarter. In margin terms, the EBITDA margin stood at 5.8% of sales as compared to 4.9% in the same period last year and 6.2% in Q2FY26. If you look at the nine month performance, our revenue stood to 91 crores up by 9.6% in the same period and the business reported a profit of 5.92 crores as compared to 3.6 crores.
Revenue from in house manufactured goods stood at 163 crores up by 1.8%. And revenue from contract manufacturing stood at 128 crores marking a 21% growth over the same period. Gross margins saw a significant improvement standing at 35.3% as compared to 34.7% in the same period. Overall this has been a very challenging quarter for us which has been hampered extensively by the environment related restrictions in constructions in a core market of North India and in particular Delhi and the NCR areas. That has been very challenging for us. And now I request Vijay Yadav to take us through some of the financials.
Vijay Yadav — Chief Financial Officer
Yusuf. And good morning to everyone. Let me take you some of the key financial for the Last year for nine months, FY26 employee expenses is 12.2% of sales as compared to 11.1% for nine months FY25 marketing expenses is at 2.8% of sales as compared to 3.6% of sales for the same period. Finance expenses is 2.4% of sales as compared to 2% of sales for the last year. Same period data for nine months is at 45 days of sales as compared to 43 days for the last year. Inventory is at 182 days of consumption as compared to 165 days of FY25 credited days is 101 days as compared to 84 days of FY25.
As a result, cash conversion cycle is at 125 days. For the nine month FY26 our ROC on annualized basis is at 11.85% as compared to 10.64% of the previous year. So these were the brief of the key financiers. Thank you sir.
Akhilesh Chitlangia — Managing Director & Chief Executive Officer
Thank you Vijay. And we would be more Than happy to take any questions that you may have.
Questions and Answers:
operator
Thank you Mr. Yadav. Friends, we now open the floor for the Q A session. Anyone wishing to ask a question, request you to raise your hand and we’ll take it up. We take the first question from Nishita San Klesha. Nishita, please go ahead.
Unidentified Participant
Yes, hello. Good morning.
Akhilesh Chitlangia
Good morning.
Unidentified Participant
So I had two questions. So one is the that in the previous call you mentioned that our own manufacturing will get better in H2FY26 as the premium product segment grows. So what is an update on that? Do we see any traction on the premium product segment?
Akhilesh Chitlangia
So yes Nishita, there is a traction on the premium product segment. For this quarter alone there was a big shift from our contract manufacturing to our in house manufacture. We had higher revenues from our in house manufactured goods which is a significant shift on a quarter. On quarter basis alone the in house manufacturing goods was up nearly 15%. And. And that is a reflection that there has been a movement in the right direction for the company which is also reflected in the increase in our gross margin.
Unidentified Participant
So like can you give a bifurcation on how much revenue will be like got from in house manufacturing and from contract manufacturing if possible?
Akhilesh Chitlangia
Yeah. For this quarter as I stated earlier our in house manufactured good stood at 60.7 crores and contract manufacturing student 32.3 crores.
Unidentified Participant
33.2 crores.
Akhilesh Chitlangia
32.3.
Unidentified Participant
Right. Okay, understood. And my next question is you mentioned that we’ll end the year FY26 at 6.5 EBITDA margin earlier. So in this quarter we’ve had 5.8% of EBITDA margin only. So do we still see that happening? Do we still like see us ending 6.5%?
Akhilesh Chitlangia
We will be in somewhere in that direction between 6 to 6 and a half percent.
Unidentified Participant
Okay, so like how what will drive this EBITDA margin growth in Q4 of 156?
Akhilesh Chitlangia
Well we expect the revenue to be slightly better in the fourth quarter quarter three we saw significant challenges which is a core market related to the, you know the pollution ban. So there is that second is also our gross margins have started improving and I think with a combination of both will allow us to hit that number for the year.
Unidentified Participant
Okay. Okay, understood. And like going forward the current like revenue from in house and contract, how do we see that going forward? Are we going to increase our in house manufacturing more? What is the like percentage range that it will be in?
Akhilesh Chitlangia
So in house manufacturing will continue to improve in the fourth quarter as well. And for the next financial year. I think it’s a little too early to say what would be the range. But we expect a 55:45 ratio mix to continue, which is what it currently is. Sorry, 60:40 ratio to improve slightly to 6,535 maybe next year. But it’s too early for me to say. So we expect that this. Sorry, yeah.
Unidentified Participant
So currently 60% comes from contract manufacturing and 40% comes from in house.
Akhilesh Chitlangia
No, no, no, I think just one second. 64% comes from in house. That’s what it was for this quarter. I think this 64 to 65% is what we’re looking for the fourth quarter as well to be from in house and 35% to be from outhouse.
Unidentified Participant
Okay, thank you so much.
operator
Thank you. Friends, anyone with a question, request you to raise your hand and we take it up. Friends, anyone wishing to ask a question, request you to please raise your hand. Nishita, do you have a follow up question?
Unidentified Participant
No, no, sorry.
operator
We’ll take the next question from Tarun Rati. Okay. From Ashwat Raja Ashwant. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. So my question was with respect to the import scare that had reduced over the past few quarters over the last year in fact. So what is the current scenario on that? And if we do see imports flowing in again in the future, how do we hedge ourselves for that risk?
Akhilesh Chitlangia
Ashwai, this is related to finish goods I’m assuming?
Unidentified Participant
Yes.
Akhilesh Chitlangia
Okay. So the finished goods import that was coming. So now there is the QCO norms which have been implemented since February or March of this year. So there is not much of imported goods that are coming into the industry currently. However, what has happened is that the unorganized sector has had a slight revival in the last quarter or so in the last five, six months on account of the cheap imports not coming. So it’s not had an impact on the premium segment as yet. But the unorganized sector, especially towards Yamna Nakar or Kerala which was struggling because of the cheap imports, those industries have had a slight revival.
Unidentified Participant
So given on the unorganized end, how do we see this for us, are we seeing any stress on our volumes in any way or how does there is.
Akhilesh Chitlangia
There was an expectation that there would be a significant improvement in the branded plywood segment. But the branded plywood segment has become a very competitive space right now. So there are some challenges on volume, especially in terms of financial liquidity in the building. Material space overall has been a little tight from the channel partner side, but I think this is temporary, and I think the country is just going through a phase, and this will kind of sort out itself in the quarters or maybe over the next one year, hopefully. Having said that, for us as an organization, we’ve been very, very disciplined on our debtors and on that side.
So we will continue to maintain that discipline.
Unidentified Participant
Okay, thank you.
operator
Thank you. Asra Prince. Anyone wishing to ask a question, request you to raise your hand. Anyone with a question, please raise your hand. We take the next question from Henna Mura. Hannah, please go ahead.
Unidentified Participant
Yeah, hi. Am I audible?
operator
Yes. Loud and clear.
Akhilesh Chitlangia
Yes.
Unidentified Participant
Yeah. Good morning. You know, thank you for the opportunity. I just wanted to ask you, on the timber front side, we had seen inflation over the last eight quarters or so. What we understand is at least plywood, those timber prices are sustaining where they are not going up. When can we see this coming off and anything? I think in February. Can we expect, you know, maybe next quarter? Just wanted to understand.
Akhilesh Chitlangia
So timber prices have stabilized, you’re right. But I do not expect them to soften too much. I think they will be in this range for some time. We have to also note that a lot of wood veneer that comes into the country today is coming from also the factor of the Indian rupee, you know, becoming weaker. And there might, as a result, the domestic wood timber prices demand could go up if the dollar continues to strengthen. And that would put, again, pressure on the raw material prices. So it’s very, very fragile and very difficult to say which way would it go.
But currently, for the foreseeable few months, I don’t see major hike or softening in the raw material prices for the plywood industry.
Unidentified Participant
Oh, okay, understood. So where would we be in terms of, you know, per kilogram, Would we be at 9 rupees today ithe north,?
Akhilesh Chitlangia
Ma’, am, we don’t produce timber, we don’t procure timber in the northern part of the country. So I would not be the right person to give an answer on that.
Unidentified Participant
Okay, but any average price that you would know, I mean, what we would be working with.
Akhilesh Chitlangia
No, I. I don’t want to speculate on that.
Unidentified Participant
Oh, okay. And you know, the second question is more on the demand front, right? I mean, you did, you know, say that the competitive pressures are higher on the branded side, so would that also mean that the secondary demand, you know, the consumption is still lagging and that’s the reason for this entire vicious circle.
Akhilesh Chitlangia
There are two parts to this. So our tracking of tertiary or secondary sale shows that there is a higher movement of Secondary sales over last year, significantly higher. But that’s not relating into our primary revenue growth for the time being. One of the reasons for that is the credit tightness that we maintain with our channel partners. And we’ve taken a conscious call that we will not chase revenue growth over, you know, fiscal discipline. So that has a factor. Secondly, as I said, in the third quarter we had the graph 4 restriction in Delhi NCR which was very extended in the month of December and then post Diwali as well.
And compared to last year, this year we’ve had I think more than 14 to 15 working days loss in Delhi and CR in surrounding areas. And as a result of that, the credit cycle becomes tighter, the cash flows for the channel partners and distributors become tighter because there’s no construction happening, there’s no flow of funds into them. And that had an impact on us. And as an organization, more than 55 to 60% of our revenue comes from northern part of the country. And so we are very sensitive to this. But I think fourth quarter onwards and then quarter one next year, I think we should be back on track.
Unidentified Participant
Understood. Okay. This has been very helpful. Those were my questions. Thank you.
operator
Right. Friends, anyone with a question, request you to please raise your hand and we’ll take it up. Anyone wishing to ask a question, please raise your hand. Anyone wishing to ask a question, please raise your hand. Friends, as there are no further questions, I’d like to hand over the webinar back to Mr. Chitlangia for his closing remarks. Thank you. And over to you.
Akhilesh Chitlangia
Right, thank you ladies and gentlemen, for joining our Q3 FY26 earnings call. I really look forward to seeing you at the next earning call as well. As I mentioned that this quarter was challenging, but the organization’s gross margins have improved and our EBITDA margins are year on year improving. And we expect this performance to keep continuing and look forward to seeing you at the next webinar. Naveen, you’re on mute.
operator
Thank you. Yeah. Thank you very much, Mr. Chitlangi and Mr. Yadav for taking time out to interact with the investors. We look forward to hosting you in the next quarter. Once again, thank you very much, ladies and gentlemen. Have a lovely day. Thank you.