Concall AI

Greenlam Industries Limited — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Greenlam Industries delivered a strong Q2 FY26, surpassing Rs. 800 crores in revenue with significant year-on-year and sequential growth. The core Laminates business performed well with healthy margins, while newer segments like Plywood and Chipboard showed progress in revenue growth and loss reduction. The company also announced a strategic brownfield expansion for its Laminates capacity and managed to reduce net debt, reflecting a positive operational outlook despite some market challenges.

Highlights

Consolidated net revenue grew 18.7% YoY and 20% QoQ to Rs. 808 crores in Q2 FY26.
Gross margin reached 54.6% in Q2 FY26, up 300 basis points YoY and 150 basis points QoQ.
EBITDA before FOREX fluctuation crossed Rs. 100 crores, growing 32% YoY to Rs. 107 crores.
Laminates segment revenue grew 10.2% YoY to Rs. 658 crores, with an EBITDA margin (after FOREX) of 18.7%.
Plywood segment revenue increased 22.2% YoY to Rs. 102 crores, with EBITDA loss reducing to Rs. 3.9 crores.
Chipboard segment revenue grew 54.2% QoQ to Rs. 47.8 crores, with utilization at 36%.
Net debt reduced by Rs. 45 crores QoQ to Rs. 995 crores as of September 30, 2025.
Announced a brownfield expansion of 2 million laminate sheets/boards, expected to generate Rs. 375-400 crores revenue by Q4 FY27.

Key financials

01 Net Revenue ₹808 Cr +18.7%YoY
02 Gross Margin 54.6%
03 EBITDA (before FOREX) ₹107 Cr +32%YoY
04 EBITDA Margin (before FOREX) 13.2%
05 Net Profit ₹31.8 Cr -7.6%YoY
06 Net Debt ₹995 Cr

What they filed

Q1 FY27: revenue up 18.2%, net profit up 231.3% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	681	602	682	674	808 +19%	706 +17%	858 +26%	797 +18%
Expenses	599	538	618	630	704	638	749	717
EBITDA	81	64	64	44	104 +28%	68 +6%	108 +69%	80 +82%
Margin	12%	11%	9%	7%	13%	10%	13%	10%
Other income	8	1	0	2	1	-4	2	6
Interest	16	16	20	26	24	23	23	19
Depreciation	27	27	33	35	36	36	35	35
Profit before tax	47	21	11	-14	46 −2%	6 −71%	52 +373%	31 +321%
Tax rate	27%	41%	86%	8%	31%	111%	22%	31%
Net profit	34	13	1	-16	32 −6%	-1 −108%	41 +4000%	21 +231%
EPS	1.36	0.50	0.08	-0.60	1.27	-0.01	1.55	0.84

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue

₹807.8 Cr Total

Laminate and Allied ₹658 Cr 81.5%
Plywood and Allied ₹102 Cr 12.6%
Panel and Allied (Chipboard) ₹47.8 Cr 5.9%

Guidance & targets

Capacity

Brownfield expansion of Laminates sheets/boards Capacity · Q4 FY27 · High confidence 2 million sheets and boards

So, on the Laminates business, we have also announced a Brownfield expansion of 2 million sheets and boards... We are expecting commercial production in Q4 of FY '27.

— Saurabh Mittal, MD and CEO

Revenue

Revenue from new Laminates capacity Revenue · Annually (post Q4 FY27) · High confidence Rs. 375 crores to Rs. 400 crores

And these two lines of 2 million sheets and boards will generate about, in the range of Rs. 375 crores to Rs. 400 crores of revenue.

— Saurabh Mittal, MD and CEO
Consolidated revenue growth Revenue · This year (FY26) · Medium confidence 18%-20%

So, cannot say much certainty, but at the overall level, we said we should be able to grow 18% -20% at an organization consolidated level basis. And I think we have maintained that.

— Saurabh Mittal, MD and CEO

Profitability

EBITDA break-even for Chipboard Profitability · FY '27 · Medium confidence Break-even

So, Chipboard, really, I think the way things are moving, we think we should be able to break even EBITDA in FY '27.

— Saurabh Mittal, MD and CEO
EBITDA break-even for Plywood Profitability · End of this year (FY26) · Medium confidence Break-even

And ply also, again, we are very close. You see a little bit of more push on the numbers and it should happen. So, yes, maybe be around there.

— Saurabh Mittal, MD and CEO

Margin

Laminate's margin (before FOREX fluctuation) Margin · Longer tenure basis / Yearly basis · High confidence Around 16%

We have given a guidance of around 16% on a longer tenure basis... we continue with the 16% guidance on a yearly basis kind of a thing.

— Ashok Sharma, CFO

Capex

Capex per new Laminate line Capex · Going ahead · Medium confidence Rs. 45 crores - Rs. 50 crores

So, it might, let us say, be in the range of, depending on what we do, about Rs. 45 crores - Rs. 50 crores going ahead.

— Saurabh Mittal, MD and CEO

Risks & concerns

US Tariffs on Laminates Exports
medium

The company is absorbing about 60% of the increased tariff cost, impacting cost competitiveness, and hopes for a resolution.

Management acknowledged
Market Challenges (Exports and Domestic)
low

Management acknowledges ongoing challenges but expresses confidence in teams to win market share and grow profitably.

Management acknowledged
Chipboard Realization Volatility
low

Realization fluctuations are attributed to the mix of orders (melamine vs. plain boards) in the early stages of the business and are expected to settle over time.

Management acknowledged

Areas of evasion (1)

Reporting of Plywood segment loss separately

Q&A highlights

3 direct

Laminate Segment Margins and Outlook Direct

So, Laminate's margin in this quarter is around 18% before the FOREX fluctuation. We have given a guidance of around 16% on a longer tenure basis... As of now, on H1 basis margin is 15.7% before FOREX fluctuation.

Clarifies the sustainability of the strong Q2 laminate margins and reiterates the company's long-term margin guidance for its core business.

Asked by Keshav Lahoti from HDFC Securities

Break-even timelines for Chipboard and Plywood segments Direct

So, Chipboard, really, I think the way things are moving, we think we should be able to break even EBITDA in FY '27. And ply also, again, we are very close... maybe be around there [by the end of this year].

Provides specific, albeit qualified, timelines for the newer, loss-making segments to achieve EBITDA profitability, crucial for overall company performance.

Asked by Keshav Lahoti from HDFC Securities

Impact of US Tariffs on Laminates Exports Direct

of the increase which is impacted to us because we ship to our subsidiary... about 40% is something we are passing on to the market, and we are absorbing about 60% of the cost.

Details the financial burden and strategy for managing US tariffs on exports, highlighting the balance between passing costs to customers and internal absorption.

Asked by Rudraksh Raheja from Ithought Financial Consulting

2 min read 6 chapters

Detailed narrative

Strong Q2 FY26 Performance Driven by Revenue and Margin Expansion

Greenlam Industries reported a robust Q2 FY26, with consolidated net revenue growing 18.7% year-on-year and 20% sequentially to Rs. 808 crores. The company achieved a gross margin of 54.6%, marking a 300 basis points expansion YoY. EBITDA before FOREX fluctuation crossed Rs. 100 crores, reaching Rs. 107 crores, a 32% increase YoY, with the margin at 13.2%. Net profit for the quarter stood at Rs. 31.8 crores, a slight decline from Rs. 34.4 crores in Q2 last year, attributed to higher depreciation, interest, and FOREX losses.

Laminates Segment Leads Growth and Profitability

The core Laminates and Allied segment continued its strong performance, with revenue growing 10.2% YoY and 18.6% QoQ to Rs. 658 crores. Volumes increased by 7.4% YoY and 17.2% QoQ, supported by a high utilization level of 96%. The segment's EBITDA margin (after FOREX fluctuation) was 18.7%, demonstrating a significant improvement of 400 basis points YoY and 450 basis points QoQ. Management reiterated a long-term margin guidance of around 16% for the Laminates business.

Strategic Brownfield Expansion for Laminates Capacity

Greenlam announced a brownfield expansion project involving two new lines for Laminates at its Andhra Pradesh facility, adding 2 million sheets and boards to its capacity. This expansion is projected to generate an additional Rs. 375-400 crores in revenue annually, with commercial production expected to commence in Q4 FY27. The estimated capital expenditure for a new laminate line is approximately Rs. 45-50 crores, benefiting from existing infrastructure.

New Segments Progress Towards EBITDA Break-even

The Plywood and Allied segment reported a 22.2% YoY revenue growth, reaching Rs. 102 crores in Q2 FY26, with its EBITDA loss reducing to Rs. 3.9 crores. Management anticipates the Plywood business to achieve EBITDA break-even by the end of FY26. The Panel and Allied (Chipboard) segment also showed strong sequential growth, with revenue up 54.2% QoQ to Rs. 47.8 crores, operating at 36% utilization, and is targeted to reach EBITDA break-even by FY27.

Improved Working Capital and Debt Reduction

The company demonstrated efficient working capital management, with working capital days improving by 12 days to 47 days in Q2 FY26 compared to 59 days in Q2 last year. This operational efficiency contributed to a reduction in net debt by Rs. 45 crores during the quarter, bringing the total net debt to Rs. 995 crores as of September 30, 2025. Management highlighted healthy cash flow from operations.

Navigating US Tariffs and Market Challenges

Management addressed the impact of US tariffs on its export business, noting that the US market accounts for 4-6% of its exports. The company is passing on about 40% of the increased tariff costs to customers while absorbing the remaining 60%, which affects its cost competitiveness. Despite ongoing challenges in both domestic and international markets, Greenlam expressed confidence in its teams to continue gaining market share and growing profitably.

This is an AI-generated summary of a publicly available earnings call transcript.

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