Greenlam Industries Limited — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

Greenlam Industries reported a mixed Q3 FY26, with consolidated revenue growing 17.3% YoY to INR 706 crores, supported by strong gross margins. However, EBITDA margins compressed by 170 bps to 9.2%, leading to a net loss of INR 0.6 crores for the quarter. The company acknowledged slower-than-expected domestic demand and challenges in newer segments like plywood and chipboard, though chipboard losses were reduced. Management remains optimistic for Q4, expecting an improvement in business performance.

Highlights

  • Consolidated net revenue grew 17.3% YoY to INR 706 crores in Q3 FY26.

  • Gross margin improved by 60 basis points YoY to 55.6% in Q3 FY26.

  • EBITDA margin before forex and exceptional items declined 170 basis points YoY to 9.2% in Q3 FY26.

  • The company reported a net loss of INR 0.6 crores for Q3 FY26.

  • For 9M FY26, net revenue grew 15.9% YoY to INR 2,188 crores, but net profit was down 77% to INR 15.5 crores.

  • Laminate and Allied segment revenue grew 8.1% YoY to INR 562 crores in Q3, with EBITDA margin at 14.5%.

  • Plywood and Allied segment reported an EBITDA loss of INR 13.3 crores in Q3.

  • Chipboard business improved, reducing losses in Q3, with revenue growing 13.3% QoQ to INR 54.2 crores.

  • Working capital cycle improved by 9 days to 58 days, and net debt stood at INR 1,010 crores as of December 31, 2025.

Key financials

2 periods

Headline

  • Revenue
    ₹706 Cr
    YoY +17.3%
  • Gross Margin
    55.6%
  • EBITDA Margin (before forex & exceptional)
    9.2%
    YoY -1.7%
  • Net Profit
    ₹-0.6 Cr

9M

  • Revenue
    ₹2,188 Cr
    YoY +15.9%
  • Net Profit
    ₹15.5 Cr
    YoY -77%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue681 602 682 674 808 +19%706 +17%858 +26%797 +18%
EBITDA81 64 64 44 104 +28%68 +6%108 +69%80 +82%
Net profit34 13 1 -16 32 −6%-1 −108%41 +4000%21 +231%
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
₹2,895.2 Cr Total
  • Laminate and Allied (9M FY26) ₹1,775 Cr 61.3%
  • Laminate and Allied (Q3 FY26) ₹562 Cr 19.4%
  • Plywood and Allied (9M FY26) ₹281 Cr 9.7%
  • Panel and Allied (Chipboard) (9M FY26) ₹133 Cr 4.6%
  • Plywood and Allied (Q3 FY26) ₹90 Cr 3.1%
  • Panel and Allied (Chipboard) (Q3 FY26) ₹54.2 Cr 1.9%

Guidance & targets

Revenue

  • Top line growth Revenue · FY26 · Medium confidence 17-20%

    Previously 18-20% → 17-20%

    For the sales growth, 9 months, we had about 15.9% precise growth. Depending on how Q4 goes, maybe we'll probably end up with 18%, 20%, maybe 1% lower maybe somewhere like on an annualized basis, so plus/minus a bit here, but I think we're not so way of despite the ground challenges of demand.

    — Saurabh Mittal, Managing Director and Chief Executive Officer

  • Mikasa brand potential portfolio Revenue · Medium confidence INR 1,000 crores
    The Mikasa brand now is nearly INR1,000 crores potential portfolio with all these categories.

    — Saurabh Mittal, Managing Director and Chief Executive Officer

Profitability

  • Plywood and Chipboard EBITDA breakeven Profitability · FY27 · Medium confidence FY27

    Previously Q4 FY26 (for plywood) → FY27

    In terms of breakeven of plywood and chipboard, we expect that this will break even in the next year.

    — Ashok Sharma, Chief Financial Officer

Capacity

  • Chipboard capacity utilization Capacity · FY27 · Medium confidence 55-60%
    For the next year, we have targeted around 55%, 60% of the capacity utilization for the chipboard.

    — Ashok Sharma, Chief Financial Officer

  • Plywood capacity utilization Capacity · FY27 · Medium confidence 55-60%
    As of now on a 9-month basis, we are at a capacity utilization of around 34%, 35%, close to 35% kind of a thing. There also, our expectation is that we should be in the range of around 55%, 60%.

    — Ashok Sharma, Chief Financial Officer

Capex

  • Remaining Capex Capex · Q4 FY26 / Q1 FY27 · High confidence INR 50-75 crores
    Capex, in terms of that, most of the capex has been done in terms of that, roughly around INR50 crores to INR75 crores is pending with some of this, which may be spent in this quarter. If at all anything is remaining, that will be done in the quarter 1 of next year.

    — Ashok Sharma, Chief Financial Officer

Risks & concerns

  • Slower domestic demand and seasonality impacting Q3 revenues

    medium

    Domestic business was slower than expected, and Q3 is typically a slow quarter due to holiday season and work disruption.

    Management acknowledged

  • Higher operating costs and exceptional losses impacting EBITDA margins

    medium

    EBITDA margin declined due to higher operating costs and an INR 6.2 crores exceptional loss on a wage code matter.

    Management acknowledged

  • Currency depreciation increasing import costs for raw materials

    medium

    Rupee depreciation led to increased costs for imported deco paper and raw materials for plywood, partially offset by higher realizations.

    Management acknowledged

  • Continued profitability challenges and delayed breakeven for Plywood and Chipboard segments

    medium

    Plywood segment operating losses increased, and breakeven for both plywood and chipboard is now expected in FY27, a delay from previous targets.

    Management acknowledged

  • Supply overhang and limited pricing power in the chipboard market

    medium

    Management noted not much room for price increases in chipboard due to demand-supply dynamics, necessitating a focus on value-added products.

    Management acknowledged

Areas of evasion (1)

  • Past revenue for Mikasa brand (pre-rebranding)

Q&A highlights

2 direct
Full-year revenue growth guidance and breakeven timeline for plywood/chipboard Partial
For the sales growth, 9 months, we had about 15.9% precise growth. Depending on how Q4 goes, maybe we'll probably end up with 18%, 20%, maybe 1% lower maybe somewhere like on an annualized basis... In terms of breakeven of plywood and chipboard, we expect that this will break even in the next year.

Reveals a potential slight downward revision in full-year revenue growth and a delay in profitability for new segments, impacting investor expectations.

Asked by Keshav Vijay Ratan Lahoti

Reasons for laminate export volume decline and sustainability of higher realization Direct
In exports, like I said earlier also in the call that in the month of December, we had postponement of shipments for our European and U.K. market postponed shipments to January from December. Our inventory in transit actually has increased substantially. Those sales should show up in Q4 as far as exports is concerned. On the price realization improvement, so you're right, largely price realization improvement has happened due to the weakening of the rupee and some value mix improvement in the export business.

Clarifies that the export volume decline was due to shipment postponements, not underlying demand issues, and explains the drivers of improved realization, which is crucial for margin outlook.

Asked by Utkarsh Nopany

Chipboard market dynamics, pricing, and competition from unorganized players Direct
On the pricing side, as we see things now with the demand and supply, we are not seeing much room for price increases in chipboard... Now 2 or 3 companies have launched that, where the realization per cubic meter is higher than the plain board. I think steps are being taken to upsell and also introduce superior product variants in the chipboard range... local players would be 15%, 20% lower in some cases, some could be 7% to 10%.

Provides insight into the competitive landscape and pricing pressures in the chipboard segment, highlighting the company's strategy to focus on value-added products rather than competing on price with lower-quality unorganized players.

Asked by Bhavin Rupani

3 min read 6 chapters

Detailed narrative

Q3 FY26 Consolidated Performance and Profitability Challenges

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 items, 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.

Segmental Performance: Laminates Lead, New Segments Face Headwinds

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.

Streamlined Brand Architecture and Product Strategy

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.

Demand Environment and Outlook for Q4 FY26

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, Pricing, and Capacity Utilization

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.

Capital Expenditure and Debt Position

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.

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