Greenpanel Industries Ltd (NSE: GREENPANEL) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Shobhan Mittal — Managing Director
Himanshu Jindal — Chief Financial Office
Analysts:
Rishab Barar — Analyst
Balaji Vaidyanath — Analyst
Utkarsh Nopany — Analyst
Keshav Lahoti — Analyst
Yash Sonthaliya — Analyst
Sneha Talreja — Analyst
Parth Bhavsar — Analyst
Anu Parakh — Analyst
Patanjali Srinivasan — Analyst
Praveen Sahay — Analyst
Presentation:
Shobhan Mittal — Managing Director
Sa. Sam sa. Sat. Foreign. Ladies and gentlemen, good day and welcome to the Green Panel Industries Limited Q3 and 9M FY26 earnings conference call. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Rishabh Bharar from CDR India for opening remarks. Thank you. And over to you Rishabh.
Rishab Barar — Analyst
Good day everyone and thank you for joining us on the Green Panel Industries Limited Q3 and 9 months FY26 earnings conference call. We have with us today Mr. Shoban Mittal, Managing Director and Mr. Himanshu, CFO. Before we begin, I would like to share some statements made in today’s discussion may be forward looking in nature and may involve risks and uncertainties. A detailed statement in this regard is available in the results presentation which was shared with you earlier. I would now like to invite Mr. Shoban Mittal to begin the proceedings of the call. Over to you sir. Thank you.
Shobhan Mittal — Managing Director
Thank you. Good evening ladies and gentlemen and welcome to our Quarter 3 FY26 earnings call. While the retail markets were a little tepid post the Diwali festivities, we continue our renewed focus on channel engagement with more sales and marketing investments to support volume growth during quarter three. The quarter began with the announcement of a new foreign travel scheme and ended with the launch of the country’s strongest, toughest and heaviest boiling waterproof MDF to supplement our existing product offerings to the customers. This along with the other ATL and BTL initiatives about which I enumerated in more details in our last earnings call will go a long way to assist and create a more sustainable volume growth strategy for Green Panel over the next three to five years.
Our domestic MDF volumes grew by 19% year on year and the export volumes were higher by 8.3% year on year total MDF volume growth thus being 17.1% for quarter three. While domestic pricing was unchanged from quarter two levels initially, discounting pressures from relevant peers came back into play post Diwali and we too had no option but to offer more discounts between November and December. Much more to the OEMs where pricing is key. As a result, the domestic realization was lower by 1.4% sequentially. Some portion of this was also on account of the change in product wise salience post addition of the new plant at AP and increase in overall proportion to OEM sales.
Plywood business is yet to revive meaningfully and we are already working on possible next steps to scale up this business. Maybe I’ll be able to share more on this over the next few quarters. Counting the exports and plywood sales as well, total revenues for the quarter grew by 11.4% year on year to rupees 398.8 crores. Given a renewed focus on cost optimization, our gross margins and the operating EBITDA margins were higher both on a year on year and also on a sequential basis. Given our strong performance in Q3amidst a more challenging market, the revised guidance that I shared with you on our last call for the full year of FY26 remains unchanged.
We continue to target a high teen growth in NDIF volumes with operating EBITDA excluding FX and one offs of high single digit to early double digit average for the full year. With this, I request our CFO Mr. Himachi Junda for the financial and other updates. Thank you.
Himanshu Jindal — Chief Financial Office
Hi. Thank you, Shubanji. Good evening all. Since Shobanchi has already covered the revenues, I try and give you more insights on the cost and margin front. So, on the cost side, timber costs which were gradually receding with improved supplies till early November were a bit more volatile thereafter with the onset of severe winter conditions in northern and heavy rainfalls in south. But we have again started witnessing some bit of cost reduction from January onwards. Cost of chemicals has also come up from the peaks in quarter two over the last two, three months which is also supporting margins.
Now more from a cost of production point of view, we were almost flat sequentially. The savings on raw materials which led to expansion of our gross margins to almost 50% were partially negated by the higher fuel and power costs which were caused by a seasonal spike on account of the severe winter conditions in the North. We also invested a bit more on the sales and marketing bit to build salience both in terms of people and pure sales promotion expenses. As a result, our operating EBITDA excluding the impact of currency movement on the long term euro borrowing for the new plant was rupees 44.3 crores or 11.2% of our revenues.
With MDF at 11.9% and plywood at 1.4%. The above also includes the impact of recognition of the balance approved but not yet accounted power subsidy of rupees 8.5 crores for the whole line at Andhra Post. The partial receipt of rupees 19.3 crores from the state government. In October 2025 for clarity, because this is something which may come up as a question during the course of the call. So for clarity, out of the total blessed state government subsidy for the old line which is 96 crores, 68 was capital subsidy and 28 was pure revenue subsidy. Out of this in the past we had already recognized 15 crores of capital subsidy which was adjusted against the carrying cost of the asset and on the revenue side the entire impact was taken into P&L 20 crores.
The balance portion which was blessed but not accounted for which is the capital subsidy of 54 crores has now been adjusted against the carrying cost of assets and also the balance 8.5 like I mentioned above has also been brought into P and L via adding it to the other operating income as a 1. Again in quarter through we were impacted by the continued volatility on the exchange rate on our outstanding long term euro denominated borrowings. This impact is rupees 3 crores during the last quarter and cumulatively this year only on the borrowing the impact is 43 crores.
Bulk of this is obviously unrealized mark to market non cash loss. Apart from this there is also an impact of 10 crores a quarter which is in form of the incremental interest in depreciation on account of the capitalization of the new plant at AP. Counting these the PBT was 11.4 crores positive and the PAT was plus rupees 10.2 crore for quarter three. On the balance sheet side we did increase inventories to support sales for second half improving availability. But despite this our core cash conversion cycle was still maintained at 32 days. The leverage has also stayed very comfortable for us.
Our net debt is 163 crores. If we count out the non cash FX change, the actual net reduction has been 40 crores during 9 months and almost 85 crores from the peak that we saw on 30th of June. On that note I think we can open the question and answers please. Thank you.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question quite please press Star and one. We take the first question from the line of Balaji Vaidyanath From NAFA Asset Managers Private Limited.
Please go ahead.
Balaji Vaidyanath
Good evening and congrats for the recovery that we have seen. And if you could throw some light on the import scenario and how we are seeing it play out for the rest of the year, please, to begin with, stop.
Shobhan Mittal
So imports are still quite muted, to be honest with you. And you know, a few companies have received the BIS certification. However, you know, with the current pricing situation in the OEM segments where imports were more prominent, the current pricing from the domestic producers itself is quite competitive to, to allow any additional imports coming in at this point of time. There are certain specific applications because of raw material characteristics where domestic material is not suitable. In those applications, imports are coming in. These are limited to, you know, specific applications where thin panels use like laser cutting, etc.
But otherwise, barring that, there is not any immediate or foreseeable threat from imports at the current price points.
Balaji Vaidyanath
And you know, this will also be. Supplemented by an incremental QCO which you spoke about last quarter, Sobhanji, if you could give us any update on that.
Shobhan Mittal
So the new QCO standards have been implemented. In fact, we are now ourselves in the process of, you know, rebranding and re, you know, calibrating our own specifications to the new QCO standards. So of course these end up being more stringent than they were previously, you know, in the BI standards. And this should further restrict imports coming in and compliance with biscuits.
Balaji Vaidyanath
Thank you. And question to Himanshu Ji on the. On the raw material side, you know, especially on the urea, if you could give us some more color on, you know, in terms of how you see this playing out and whether the worst is over.
Himanshu Jindal
See, we don’t buy urea directly. We buy only resins, right. These are manufactured by someone else, our vendors and we buy them on competitive basis. Right. So for us, I think the consequences. How much do we buy at the chemicals? End of the day, I think we did see a spike. Like I mentioned earlier on the two calls during quarter two and thereafter, the prices are coming down within pre supplies. I think, you know, today where we are, I think, you know, I think the pricing environment per se is pretty stable now. It’s already come down.
Balaji Vaidyanath
Okay, thank you so much. I’ll get back in the queue.
operator
Thank you. We take the next question from the line of Utkarsh Nupani from Anandrati. Please go ahead.
Utkarsh Nopany
Yeah. Hi. Good evening, sir. So my first question is on the MDF segment. So like if we see our domestic MDF revenue has remained stable on a Q on Q Basis but our margin has slightly improved. So can you please specify what is the reason for the margin improvement in December quarter And what would be our MDF EBITDA margin guidance for FY27?
Shobhan Mittal
Do you want to get that?
Himanshu Jindal
Yeah, yeah, no problem. I can. So you’re right. Sequentially the volumes have been flattish on the retail side, on the domestic front. Right. But yes, we have sold more of exports. Right. So you know, when you sell more, obviously operating leverages also play out. And this is why you see operating margins going up. Yeah. Otherwise like I said.
Utkarsh Nopany
The export commands pretty significantly lower margin compared to the domestic volume. It should actually pull down the margin, but it has actually.
Himanshu Jindal
No, no, no, no, no, no, no, no. So please try and appreciate, you know, even in the last quarter my fixed costs are already absorbed. Now with additional volumes coming into place, every cubic meter that I sell, I get more and more contribution. Even exports may make money for me, not that they don’t at a contribution level basis. Right. So it’s only recovery of fixed costs that I’m working on via exports. If the domestic markets are a little challenging and there is an opportunity on the export front, I still go ahead and sell. Same with OEMs.
If the retail markets are great, I’ll try and push in more and more on retail. Right. So I think there is definitely some advantage which flows in not only on my operating leverage but also otherwise on my direct expenses on my power, fuel, on the, you know, on the quality of the product. Also one way or another way when I run my lines more sustainably. And this is what you are seeing in my margins now flowing in.
Utkarsh Nopany
Okay. And sir, like given rupee has weakened quite a lot. So I just wanted to know from your strategy perspective whether you would be planning to take any price hike in near future or you would target to quickly ramp up the south plant by keeping the prices relatively stable for the next few quarters.
Himanshu Jindal
On the pricing. Yeah.
Utkarsh Nopany
Yeah. I didn’t understand. When you’re saying price hike, are you talking about in the export segment or the domestic segue? The domestic market, sir.
Shobhan Mittal
No. So you know, like I mentioned earlier that at the moment we don’t foresee any major threat coming in from exports. My understanding is what you’re referring to is that exports will become more expensive. Sorry, Imports will become more expensive in rupee terms. Is that right? That’s what you mean?
Utkarsh Nopany
Yes, sir.
Shobhan Mittal
Yeah. But like I mentioned, you know, imports are not really a threat at this point of time because domestic pricing itself is at a price point where we are already very competitive. So today in the segments where imports were being consumed the real competition is from the domestic players. It’s not from imports, to be honest with you. And because of the domestic competition and pricing pressures I don’t foresee we’ll be able to factor in the. You know, the rupee devaluation into our pricing into the. To the customers.
Utkarsh Nopany
Okay, Got it, sir. And sir, lastly sir, like on the subsidy part, if you can kindly help me. Like how much EPCG benefit we have recognized in December quarter and. And if you can also specify the subsidy amount which we have mentioned in the footnote. Like eight and a half crore. You have already mentioned that it is. It has been recognized as part of operating income. 19.3 crore which we have received where it has been recognized. And the 53.7 crore which is yet to be received where we have recognized in the P and L or in the balance sheet.
Sir, if you can specify this.
Himanshu Jindal
Okay, let me. Let me try and answer this. So EPCG is on exports. If we export more, we recognize more epcg. In the last three quarters I’ll give you all the figures so that you get all the figures for the current fiscal. In quarter one we had five crores epcg. In quarter two we had six. And this quarter we have eight. That’s EPCG which is there as part of your other operating income. So every quarter we are getting, you know, more or less between 5 to 8 crores. Yeah. Now your second question is on subsidies.
As I mentioned in my opening remarks, anticipating this question will obviously come in. So for you to know, there was 96 crores that I had to receive from the government of Andhra Pradesh for the old line. A large part of this was capital subsidy which was 68 crore. The balance was basically power subsidy which is revenue in nature, 28 crores. Now in the past the company had recognized already 15 crores of capital subsidy and 20 crores of revenue subsidy in books which means 35 was already accounted for. Money not received. This was the status till 30th September.
Since I received money in October which was 19 crore. Against these receivables I brought down my receivables from 35 -19. That’s the receivable that I was carrying in a way. But then because money is flowing in already there’s 20% of the money which has come in. Based on our assessments and based on the discussions with the auditors and otherwise we said we will recognize the balanced unaccounted but Approved subsidies in our books. Now what have we done in this quarter out of the balance unaccounted capital subsidy which is 54 crores that has been adjusted against the carrying cost of the assets, the fixed assets.
So this is why my fixed asset block has come down to that extent. 54 crore on which you know, obviously going forward the depreciation expense is going to be lower based on the remaining life of the asset. The revenue subsidy which was approved but not accounted for was only eight and a half which has now been brought into books via the P and L getting it added to the operating income. Does this simplify or answer what you want, what you wanted to know?
Utkarsh Nopany
Yeah, yeah it is pretty clear. And sir, lastly like sir, how much EPCG benefit balances left which we can accrue?
Himanshu Jindal
Okay, so 51 was the opening. You remember the opening figure actually or you know before we started recognizing EPCG was 86 last year. Last fiscal in quarter four we had accounted for 35 which meant opening figure this fiscal was 51. I explained to you 568. So 19 crores almost has been accounted for in this fiscal balance is still to be, you know, still to be recognized. So there’s 32 EPCG which is shown as liabilities in my book which the moment I export more and more I’ll keep recognizing to your question, how much would be recognized in the Cisco.
The run rates are already there with you. If I get an opportunity to export more, I’ll recognize more this year. The balance will obviously flow through in the next year. So maybe in the next four to six quarters this entire amount will come into books.
Utkarsh Nopany
Got it sir. Thanks a lot sir.
Himanshu Jindal
Most welcome.
operator
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. We take the next question from the line of Keshavan Lahoti from HDFC Securities. Please go ahead.
Keshav Lahoti
Sir, as you highlighted, you know, 8.5 crore power subsidy which you recognize this quarter. So this MDF margin it is coming around 1% includes that subsidy also like one off in nature. So fair assessment.
Himanshu Jindal
Yes, yes it does.
Keshav Lahoti
And one last question from my side. How are the timber prices moved in this quarter and how. What is the outlook for the same?
Himanshu Jindal
Sorry. So I. Yeah, so I tried covering it, you know as part of my, my speech and also as part of the answer that I gave just now. So what I said Keshav was the timber prices month on month sequentially were dropping and this continued to be the trend till November, mid November. But then you saw winter setting in in north and you saw heavy rainfall in Tamil Nadu or Andhra and therefore there was a bit of a spike which came into play. Now for the last, you know, since January beginning we are seeing again prices coming down.
I think we should also remember there was a play of the timber recipes or the way we mix timber at RN now to produce mdf. I think all of that is playing together sequentially. Every single quarter we are getting savings. I think between quarter two, quarter three, largely counting in everything in we were more or less at par. Right now to your questions on resins or chemicals generally. Like I mentioned, there were some supply challenges in quarter two because of which the prices had hardened from there. Every single month we are seeing prices come off, you know, so they’ve the.
I think the peak was sometime in October, November, early November and thereafter the prices have continued to come down. Today we are pretty stable.
Keshav Lahoti
Okay, got it. Thank you so much.
operator
Thank you. We take the next question from the line of Yash Sonath from Edelweiss Public alternates, please go ahead.
Yash Sonthaliya
Hi team, thank you for taking my question and congratulation on good set of numbers. So like you already alluded, you took the price hit of I think 1.4%. So I wanted to understand specifically for the south plant, what was our price change like what was the decline specifically for the south plant.
Himanshu Jindal
So we don’t look at it like south and north anymore to be honest, because we ended the day. See the same plants are being used to service all locations. There are certain lines are today fungible markets are again can be fed from both the plants. So wherever we can produce something at the best economics we go ahead and produce that product and supply to the market. Right. So it’s very difficult to specify what is the price for a particular plant today in the current context. But yeah, prices are, you know, the same wherever they come from.
Whichever plant, the end of the day the customer should get it at the same price.
Yash Sonthaliya
Got it, Got it. And second like 1.4 was due to price realization decline and other was due to product mix change. So was it because of the test production we did in our new plant or it is structurally consciously we are taking the call to cater to more OEM because of the market scenarios.
Himanshu Jindal
So if you look at my domestic realization, it was down 1 and a 1.4. If you look at my export realization, it was also down incidentally by the same proportion sequentially. Right. But when you see my exports going up Automatically the blended realization appears to be two, two and a half percent lower. Right. So I think that should answer, you know, more importantly, again, between retail and OEM on the domestic front, as Shomanji mentioned, OEM is what, you know, has, you know, there has been a volume upsurge for sure. Right. So that’s in a way.
So retail markets, the discounts may not be in line with whatever we are giving to OEMs. OEMs command a higher discount.
Shobhan Mittal
But. But this is purely a function of demand. To answer your question, you know, today we are not in a position to pick and choose what we sell and who we sell to. At the moment, the focus because of surplus capacity, both at the company level and in the market is, you know, to capture any demand that is available, irrelevant of the product mix that it’s offering.
Yash Sonthaliya
Understood. And one last follow up, like if you can help me, the channel mix, Q3, FY25 and what is right now in Q3 FY26 between OEM and other channels.
Himanshu Jindal
So OEM is roughly 25% of the MDF domestic that we sell. Balance 75 is retail. If you compare it with service sequentially, it was more or less similar last year, I think 2, 3% here or there. So retail I think last year was 77% on. And this year, like I said, it’s already 75.
Yash Sonthaliya
Thank you.
operator
Thank you. We take the next question from the line of Sneha Talreja from Nuama. Please go ahead.
Yash Sonthaliya
Hi evening team and thanks a lot for the opportunity. Just couple of questions. One, you said that you know, in November and December you observed incremental discounts coming up and that’s where you had to increase discounting. Any signs that we are seeing for price increase happening in mdf, if not now, when would we potentially see it?
Shobhan Mittal
Sneha, this will be purely speculation if I have to answer this question, to be honest with you. So as of now, if you ask me, do I foresee any price increases coming in, answer would be probably not.
Sneha Talreja
Understood. Secondly, for FY27 as a whole, of course you’ve given guidance for this year. FY27 as a whole, you know, given the current pricing, what’s the kind of a volume growth that you’re likely to see? And any margin guidance there with the.
Shobhan Mittal
Current pricing, I think we will want to wait to see how quarter four pans out before giving a guidance.
Sneha Talreja
Understood, sir. Thanks. Thanks a lot. That, that was a lot from my end. All the best, team.
Shobhan Mittal
Thank you.
operator
Thank you. We take the next question from the line of Bhavsar from Investec. Please go ahead.
Parth Bhavsar
Hello. Hi sir. So thank you for the opportunity. So I just wanted one clarification to start with. So if I heard it right, so. There was a epCG benefit of 8 crores in Q3. And besides this, we also booked a power subsidy of 8.5 crore which was in our favor. Which is part of EBITDA for mdf, right?
Himanshu Jindal
Yes.
Parth Bhavsar
Perfect. Perfect. So that was my question. Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. Ladies and gentlemen, if you wish to ask a question, please press star and 1. We take the next question from the line of Anu from Anand Rati. Please go ahead.
Anu Parakh
Yeah. Hello sir. Am I audible?
Himanshu Jindal
Yes, please.
Shobhan Mittal
Yes.
Anu Parakh
So what is the volume growth target for Q5? FY26 and FY27.
Shobhan Mittal
So for. Well, for Q4 as we said, you know, on an average we should have a mid to high teens volume growth on an annual basis. And for FY27, we like to refrain from giving any projections till the quarter four numbers are out, please.
Anu Parakh
Okay. And what would be our MDF EBITDA margin guidance for FY27?
Shobhan Mittal
That would again be dependent on the volume growth. So as mentioned earlier, we’d like to refrain from mentioning that at this point of time.
Anu Parakh
Okay. And whether the margin on export has become lucrative due to weak rupee.
Shobhan Mittal
It’S improved. So there’s not been, I would say any material price reduction on the export side. So yes, because of a higher rupee value against the dollar, it’s improved slightly. Yes.
Anu Parakh
Also, can you specify what would be the sustainable EBITDA margin for mdf?
Shobhan Mittal
Well, in my opinion, with proper utilization, proper product mix, you know, it is very much possible up to 20%.
Anu Parakh
Okay. And so last question, like what is the Export margin in Q2, Q3 and how it is likely to be in the coming quarters?
Shobhan Mittal
Himanshu, do you have that?
Shobhan Mittal
Papa?
Himanshu Jindal
I mean, see, I think Anu, you need to realize that, you know, we look at exports as a filler, right? To do more volumes at a more consistent, you know, just to ensure that my capacities are running optimally. Right? Yes. We produce contribution, which is what I look at, you know, sales. My sales price minus the variable do I make money or not? And then obviously there’s an upside in terms of early recognition of epcg. Right? So I think these are the advantages which exports offer. And this is something that we monitor. You know, that’s.
I think that’s something that we can say. Okay.
Anu Parakh
Okay. Thank you. Thank you so much.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star Antoine. We take the next question from the line of Patanjali Srinivasan from Sundaram mutual fund. Please go ahead.
Patanjali Srinivasan
Thank you for the opportunity. I have a couple of questions. So firstly, the new plant coming up, utilizations have dropped quite a bit at a company level. And what level would the plant be operationally like ebitda Costive. And where are we today in terms of utilization at the new plant?
Himanshu Jindal
Okay, I’ll take that. Shobanji. So.
Shobhan Mittal
Yeah, yeah, please.
Himanshu Jindal
Utilization. Same time last year patanjali were roughly 66% without the new capacity coming into play. Right? You arrived with this new capacity even on a holistic basis all the three plants put together. My capacity utilizations have been almost similar. Right. So we’ve done 63, 64% capacity utilizations in this quarter on a production basis. Now you know, are we absorbing all the fixed costs already? We are. The new line is running very well. You know, all the three lines put together, like I mentioned, we are already 63, 64. And the new line is also more or less similar.
Right. So you know, we are already making money, positive ebitdas on all the three lines.
Patanjali Srinivasan
Okay. And you didn’t mention about what the utilization levels would be at the plant.
Himanshu Jindal
Sorry, I missed.
Patanjali Srinivasan
Yeah, the utilization level will be at the new plant.
Himanshu Jindal
The new plant is already operating at a 60% capacity. So no problem. All the three lines like I mentioned to you are round about the same. So we today we are agnostic. You know, any demand which comes in, we look at which line can produce and feed the demand at the right economics. Right. So you know, wherever we can feed, whichever way you’re not be feeding looking at overall economics.
Shobhan Mittal
So just for everyone’s understanding, you know, basically barring very thin panels, all three lines are capable of producing all the SKUs that we offer to the market. So looking at the plant efficiency, looking at our production planning, looking at the freight economics, we. We choose on a. You know, there is a lot of variability on what we produce on which line at any given point of time. So if the line, you know, in Andhra Pradesh, Line 2 is occupied with a certain product, we may choose to produce a line 2 product on the line 3 just to service it faster.
You know, if there is restrictions for the north plant, we can produce those products in the south and still supply if the economics work out. So there’s a lot of, let’s say flexibility now that we have in our production process. So it’s not fair to look at one line’s capacity alone because we may intentionally produce that line’s product on another line if it’s giving us better economics.
Patanjali Srinivasan
Got it, sir. Okay. And I just have one more question. I think couple of quarters back we had indicated about margins improving because we’ll see deflation in raw materials. Material cost and timber related issues were there because of a previous 4, 5 year back period where things were not great in terms of. There was a delay in terms of availability of wood and all of that. But that will all ease towards Q3. And can you tell me like how much of it is translated? Because I do get a sense that you mentioned that by December there was a decrease in cost, but there’s an increase in cost because of some seasonality and now it’s again falling.
But would we see like a fair bit of decrease here in terms of cost? And also what would be a raw mat mix between resin cost and timber costs?
Himanshu Jindal
See I think you know Patanjali, the you know, margins, you know are a mix of or a derivative of two things. One is how do we behave or how competition more importantly behaves in the market. Market apart from the supply, demand, economics on pricing. So I think you know, maybe a few quarters back pricing was not such a big or let me say we were disciplined. Today we are behaving the way competition wants us or allows us to behave. So therefore you have seen some price reductions coming into play to ensure that we have enough volume, you know, you know, we sell enough volume, we produce and sell enough volume.
The second piece is on cost. I did mention seasonality but like I also mentioned my cost of production sequentially was more or less similar between quarter two and quarter three. If the cost environment also becomes more conducive, I’m sure that is the margin that we can keep with us unless the market becomes more aggressive and they start discounting. So I think for now I think the conclusion is my gross margins today are at 50% I think in this quarter. I think it’s a little difficult for us to preempt. But costs remaining where they are, pricing remaining where they are, at least we should be able to do whatever margins we have been doing.
Patanjali Srinivasan
Yeah, I wanted split between resin cost.
Himanshu Jindal
So I would say chemicals and I’m saying chemicals and timber. My of my raw mat cost would be roughly 50, 50 today.
Patanjali Srinivasan
Got it? Okay, sure. Thank you so much.
operator
Thank you. We take the next question from the line of Praveen Sahai from Prabhu Das Leeladar Capital. Please go ahead.
Praveen Sahay
Yeah. Hi sir, thank you for opportunity. The first question is related to the volume and this quarter the 17% of a volume as a whole or 19% domestic and especially in the domestic 19% last year the commercial grid volume were also you know accounted and if I exclude that the growth in the domestic is nearly around 45%. So for a fourth quarter why we you are guiding for a mid teens kind of a growth. Whereas second quarter and third quarter we had seen X of a commercial grid growth has been very good.
Himanshu Jindal
So I think you know what Shobanji mentioned was for the full FY 2026 number. Right, Praveen. So he said, I think if I heard him correctly, he said mid medium to high teen growth in MDM volumes overall. This is what we said and please do remember in quarter one my volume there was a degrowth which happened. So we’re counting that in and saying that overall for the full year the revised guidance what what we shared in October, November holds today, today as well. This is what we meant.
Praveen Sahay
Okay. Okay. So that clearly indicates that the higher growth in the fourth quarter. Is that understanding?
Himanshu Jindal
Right sir, I spelled it out for you. I said. Yeah, yeah.
Praveen Sahay
Second thing sir, on so because in the presentation you had mentioned MDF margin of 11.9% and which is excluding one offer. So you have one of this, the. The power subsidy also one off in that.
Himanshu Jindal
No. So no other operating income includes the impact of this eight and a half. Right. But this was always power, it was related to power. It was always accounted for in the past periods in that way. Yeah. Till the time we were accounting. So. So it is already there. Right. But one of essentially mean fx, you know, if I were to ask, if I were to answer this FX has been a bigger consequence for us this year as a whole. Right. And that’s the larger one of which has been excluded when I say operating ebitda.
Praveen Sahay
Got it. That was my questions. Thank you. And all the best.
Himanshu Jindal
Yes, thank you.
operator
Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to the management for their closing comments.
Shobhan Mittal
We thank everyone for joining this call and we look forward to speaking to everyone at the end of next quarter and the financial year. And if anyone has any further questions, please do not hesitate to reach out to us. Thank you very much and have a good evening.
Himanshu Jindal
Thank you.
operator
Thank you sir. On behalf of Green Panel Industries Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.