Greenlam Industr

Greenlam Industries reported a consolidated net revenue of INR 706 crores in Q3 FY26, marking a 17.3% year-on-year growth. Gross margins remained strong, expanding by 60 basis points to 55.6%. However, the quarter saw a significant compression in EBITDA margin before forex and exceptional item^📎s, which declined by 170 basis points to 9.2%. This, coupled with higher operating costs and an exceptional loss of INR 6.2 crores related to wage code matters, resulted in a net loss of INR 0.6 crores for the quarter.

The Laminate and Allied segment continued to be the primary revenue driver, growing 8.1% year-on-year to INR 562 crores in Q3, with an EBITDA margin of 14.5%. Sales volume for laminates, however, saw a slight decline of 0.4% year-on-year to 4.75 million sheets, though average realization improved to INR 1,143 per sheet. The Plywood and Allied segment grew 9.5% to INR 90 crores but reported an EBITDA loss of INR 13.3 crores. The Panel and Allied (Chipboard) segment showed sequential improvement, with revenue growing 13.3% quarter-on-quarter to INR 54.2 crores and reducing its EBITDA loss to INR 3.2 crores.

The company has streamlined its brand architecture, consolidating under two main brands: Greenlam and Mikasa. Greenlam will encompass laminates, facade, sturdo, and melamine chipboard, while Mikasa will carry laminates (rebranded from NewMika), plywood, and veneer (rebranded from Decowood), flooring, and doors. This strategy aims to streamline operations, enhance brand value, and provide a clearer market positioning. The Mikasa brand is envisioned to have a potential portfolio of nearly INR 1,000 crores across its categories.

Management acknowledged that Q3 FY26 revenues were 'a bit lower' than expectations, attributing this to the holiday season, work disruptions in India, and postponement of export shipments to January. Domestic business was also 'a bit slower' than anticipated. Despite these challenges, the company remains hopeful for Q4, traditionally a stronger quarter, and expects full-year top-line growth to be around 17-20%, a slight potential downward adjustment from the initial 18-20% guidance.

Raw material costs, including chemicals, have largely remained stable despite rupee depreciation, though imported deco paper costs increased. Laminate pricing in both domestic and international markets is stable, with some realization improvement due to rupee weakening and value mix. In the chipboard segment, pricing power is limited due to supply overhang, prompting a focus on high moisture resistant and pre-laminated variants. The company targets 55-60% capacity utilization for both chipboard and plywood plants in FY27, with breakeven for these segments now expected in FY27.

Most of the planned capital expenditure has been completed, with approximately INR 50-75 crores remaining, expected to be spent in Q4 FY26 or Q1 FY27. The company's net debt stood at INR 1,010 crores as of December 31, 2025. The working capital cycle showed an improvement, reducing by 9 days to 58 days compared to 67 days in Q3 last year, indicating better operational efficiency.