Greenlam Industries FY26 Annual Earnings Summary
3 quarters covered · ₹2,372 Cr revenue · ₹72 Cr PAT · 12.1% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Risks flagged during the year
US tariffs have reduced cost competitiveness; company absorbing 60% of tariff increase, which could pressure margins if not resolved.
Q3 FY26 · highPlywood utilization remains at ~35% and chipboard at 41%, well below expectations, leading to continued losses.
Q2 FY26 · mediumForex losses and higher depreciation from recent capitalizations are impacting PAT, which declined 7.6% YoY despite revenue growth.
Q2 FY26 · mediumChipboard and plywood segments continue to report EBITDA losses, with chipboard utilization only at 36% and breakeven expected only in FY27.
Q3 FY26 · mediumUS tariffs are currently applicable on laminates; management has partially passed on costs but margins remain under pressure.
Q3 FY26 · mediumManagement noted slower domestic demand and cash flow challenges among partners, though not quantified.
Q4 FY26 · mediumMultiple price increases due to raw material cost inflation may dampen demand, especially in the domestic market.
Q4 FY26 · mediumThe West Asia conflict disrupted exports in March and April, with potential for further impact if the situation worsens.
Q4 FY26 · lowAn analyst raised the possibility of particle board plants converting to MDF, which could alter competitive dynamics, but management had no clarity.
Q4 FY26 · lowPlywood remains regional; pan-India launch is only expected in FY28, limiting growth potential in the near term.
What changed through the year
Q2 FY26 · Consolidated revenue growth of 18-20% for FY26
Management expects to maintain 18-20% revenue growth at the consolidated level for the full year.
Q2 FY26 · Laminate EBITDA margin guidance of ~16% on a yearly basis
Management reiterated a long-term laminate EBITDA margin guidance of around 16% annually, though Q2 achieved 18.7%.
Q2 FY26 · Brownfield laminate expansion of 2 million sheets, commercial production in Q4 FY27
Two new laminate lines at Nidopeta, Andhra Pradesh, will add capacity and generate ₹375-400 crore revenue.
Q2 FY26 · Chipboard breakeven expected in FY27
Chipboard business is expected to break even at EBITDA level in FY27 as utilization improves.
Q3 FY26 · Full-year revenue growth 18-20%
Management expects FY26 revenue growth to be in the 18-20% range, with Q4 being a strong quarter.
Q3 FY26 · Chipboard capacity utilization target 55-60% in FY27
Targeting 55-60% capacity utilization for chipboard in the next fiscal year.
Q3 FY26 · Plywood/chipboard EBITDA breakeven next year
Expect plywood and chipboard segments to achieve EBITDA breakeven in the next fiscal year.
Q4 FY26 · 18% topline growth in FY27
Management reiterated 18% revenue growth guidance for FY27, driven by all segments.
Q4 FY26 · Chipboard and plywood to break even in FY27
Both chipboard and plywood segments are expected to achieve breakeven during FY27 as utilization improves.
Q4 FY26 · Laminate margin to sustain at 16-17%
Laminate EBITDA margin is expected to remain in the 16-17% range, with potential for slight improvement.
Q4 FY26 · Two new laminate lines by end of FY27
Two brownfield laminate lines at Andhra Pradesh plant will commence production by end of FY27, adding 2 million sheets capacity.