Greenpanel Industries Ltd (NSE: GREENPANEL) reported its financial results for the third quarter of Fiscal Year 2026 today, posting a 20.4% year-on-year increase in net profit to ₹10.24 crore. The results, announced during market hours, triggered a sharp intraday rally in the stock, which surged over 9% before cooling off to close 2.55% higher at ₹218.00.
While the headline numbers indicate growth, the quarter was characterized by significant one-off items, including a major subsidy recognition that masked underlying operational pressures and ongoing foreign exchange challenges.
Key Financial Highlights (Q3 FY26)
Revenue from Operations: ₹416.27 crore (Up 15.8% YoY)
Net Profit (PAT): ₹10.24 crore (Up 20.4% YoY)
MDF Segment Revenue: ₹388.13 crore (Up 18.6% YoY)
Plywood Segment Revenue: Declined 12.6% YoY
Operational Performance: A Tale of Two Segments
The quarter’s growth was driven almost exclusively by the Medium Density Fibreboard (MDF) segment, Greenpanel’s core business. MDF revenues climbed 18.6% to ₹388.13 crore, reflecting the company’s strong market position and volume recovery in this category.
In contrast, the Plywood segment continued to face headwinds, with revenue contracting by 12.6% YoY. This divergence highlights the company’s increasing reliance on MDF as the primary engine for top-line growth.
The “Subsidy” Factor & Forex Woes
Investors looking beyond the headline profit figure will note the critical role of non-operational items this quarter. The company recognized a substantial subsidy (totaling approximately ₹262 crore across various heads, including “Other Operating Revenue” and asset disposals), which significantly bolstered the Profit Before Tax (PBT).
Without this one-off inflow, the company’s profitability would have been severely impacted by the same factor that has dragged down its nine-month (9M) performance: Foreign Exchange Losses.
For the nine-month period ended December 31, 2025 (9M FY26), Greenpanel reported a net loss of ₹30.5 crore, a sharp reversal from the ₹42.7 crore profit recorded in the same period last year. This swing was primarily attributed to a massive ₹234 crore foreign exchange loss related to its External Commercial Borrowings (ECB), which has weighed heavily on the company’s balance sheet throughout the fiscal year.
Market Reaction
The market reacted positively to the immediate quarterly growth and the MDF volume recovery. Greenpanel shares opened at ₹211.00 and spiked to an intraday high of ₹236.00 (+9.39%) as the results hit the terminals. The stock eventually settled at ₹218.00 on the NSE, outperforming the broader market weakness seen in the Nifty 50 today.
The Bottom Line: A Quarter of Contrast
Greenpanel’s Q3 FY26 results reveal a company caught between strong operational recovery and persistent financial headwinds. While the top-line growth in its core MDF business is a significant win, the net profit was heavily supported by one-time subsidies rather than pure operational efficiency.
Greenpanel is a “Strong Business” currently trapped in a “Weak Balance Sheet.” The stock’s rally today reflects relief that volume growth has returned. However, for a sustainable long-term re-rating, the company needs to solve its forex exposure and prove it can maintain double-digit margins without the help of government subsidies.