US tariff impact on laminate exports
US tariffs have reduced cost competitiveness; company absorbing 60% of tariff increase, which could pressure margins if not resolved.
GREENLAM / bear-case history
Track the concerns that keep returning.
Greenlam Industries · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Forex losses and higher depreciation
Forex losses and higher depreciation from recent capitalizations are impacting PAT, which declined 7.6% YoY despite revenue growth.
Chipboard and plywood losses persist
Chipboard and plywood segments continue to report EBITDA losses, with chipboard utilization only at 36% and breakeven expected only in FY27.
US tariff impact on laminate exports
US tariffs are currently applicable on laminates; management has partially passed on costs but margins remain under pressure.
Slow ramp-up in plywood and chipboard
Plywood utilization remains at ~35% and chipboard at 41%, well below expectations, leading to continued losses.
Demand slowdown in domestic market
Management noted slower domestic demand and cash flow challenges among partners, though not quantified.
Demand slowdown from price hikes
Multiple price increases due to raw material cost inflation may dampen demand, especially in the domestic market.
Middle East geopolitical impact
The West Asia conflict disrupted exports in March and April, with potential for further impact if the situation worsens.
Chipboard competition from MDF conversion
An analyst raised the possibility of particle board plants converting to MDF, which could alter competitive dynamics, but management had no clarity.
Plywood pan-India expansion delay
Plywood remains regional; pan-India launch is only expected in FY28, limiting growth potential in the near term.