Greenlam Industries Limited

Greenlam Industries achieved an annual revenue of INR3,046 crores in FY26, marking an 18.6% year-on-year growth. The fourth quarter of FY26 saw a consolidated net revenue of INR858 crores, a 26% increase compared to the previous year. This growth was attributed to improved performance across all categories, including core businesses and new ventures like Plywood and Chipboard. Despite the revenue growth, FY26 net profit declined by 18% to INR56 crores, primarily due to initial operational losses in the new chipboard business and higher interest and depreciation costs.

The Laminate and Allied segment continued its strong performance, with Q4 FY26 revenue growing 14% YoY to INR658 crores. The EBITDA margin before forex for this segment stood at 17.2% in Q4, a 350 basis point improvement YoY. For the full year FY26, laminate revenue grew 9.3% to INR2,433 crores, with an EBITDA margin of 15.9%. Production volume for laminates reached 21.01 million sheets in FY26, operating at an 86% utilization level, with sales volume growing 4.6% YoY to 20.65 million sheets.

The Plywood and Allied segment recorded INR119 crores in revenue for Q4 FY26, an 18% YoY growth, but incurred an EBITDA loss of INR3.8 crores. For FY26, plywood revenue was INR400 crores with an EBITDA loss of INR29.5 crores. The Chipboard segment, in its first full year of operation, showed significant progress with Q4 revenue growing 47% QoQ to INR80 crores, and EBITDA loss reducing to INR2.2 crores. Q4 chipboard production volume was 35,300 cubic meters at 49% utilization, with sales volume at 38,800 cubic meters, up 34% QoQ.

The company faced increased raw material costs, particularly chemicals, due to geopolitical conflicts, which were largely passed on in the domestic market. Logistical challenges, including increased transit times and sea freight, were managed successfully. Management noted some demand uncertainty, with weak secondary sales and project postponements, but no significant demand destruction. Greenlam consolidated its brand strategy to two main brands, Greenlam and Mikasa, to enhance market positioning and leverage brand costs.

Net debt as of March 31, 2026, stood at INR940 crores, with a target to reduce it by INR50 crores in FY27. The company is focused on optimizing existing capacities rather than adding new ones in FY27, except for two new laminate lines at the Andhra Pradesh plant expected to commence production by the end of FY27. The working capital cycle was efficiently managed, largely maintained at 57 days for FY26, improving to 51 days in Q4 despite the addition of new businesses.

Greenlam aims for an 18% top-line growth in FY27, with the laminate segment expected to grow 10-12%. The company anticipates laminate EBITDA margins to remain in the 16-17% range. A key focus for FY27 is achieving breakeven for both the plywood and chipboard segments. Plywood utilization is projected to reach near full capacity by FY28, and chipboard utilization is expected to continue improving from its current 49% level in Q4 FY26.