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US tariff impact on laminate exports
View Risks →Greenlam Industries Limited — Q3 FY26
Greenlam reported Q3 FY26 consolidated revenue of ₹706 crore (+17.3% YoY), but EBITDA margin contracted 170bps to 9.2% due to higher operating costs and exceptional items.
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Greenlam reported Q3 FY26 consolidated revenue of ₹706 crore (+17.3% YoY), but EBITDA margin contracted 170bps to 9.2% due to higher operating costs and exceptional items. The laminate segment saw EBITDA margin expansion of 100bps to 14.5%, while chipboard and plywood segments continued to drag profitability. Management maintained its full-year revenue growth guidance of 18-20%, expecting a strong Q4 recovery. Key risks include slower-than-expected ramp-up in plywood/chipboard capacity utilization and potential US tariff impacts on laminate exports.
ग्रीनलैम ने वित्त वर्ष 2025-26 की तीसरी तिमाही में ₹706 करोड़ का कुल राजस्व दर्ज किया, जो पिछले साल की समान तिमाही से 17.3% अधिक है। लेकिन कंपनी का मुनाफा मार्जिन (EBITDA) 9.2% रह गया, जो पिछले साल से 1.7% कम है। इसकी वजह बढ़ी हुई परिचालन लागत और कुछ खास खर्चे हैं। लैमिनेट कारोबार में मुनाफा मार्जिन 1% बढ़कर 14.5% हो गया, जबकि चिपबोर्ड और प्लाईवुड सेगमेंट में मुनाफा कम रहा। कंपनी को उम्मीद है कि चौथी तिमाही में अच्छी वृद्धि होगी और पूरे साल 18-20% राजस्व बढ़ोतरी का लक्ष्य है। जोखिमों में प्लाईवुड और चिपबोर्ड की क्षमता का धीमा उपयोग और अमेरिकी टैरिफ का लैमिनेट निर्यात पर असर शामिल है।
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Read Transcript →Quarter Snapshot
Laminate production volume
5.08M sheets
Not disclosed
Production volume for Q3 FY26; utilization at 83%.
Laminate sales volume
4.75M sheets
-4% YoY
Sales volume declined due to shipment postponements in December.
Laminate average realization
₹1,143/sheet
Not disclosed
Higher realization driven by rupee depreciation and value mix improvement.
Chipboard capacity utilization
41%
Not disclosed
Utilization improved from 36% in 9 months; target 55-60% next year.
What Changed vs Last Quarter
NEW
Chipboard capacity utilization target 55-60% in FY27
Targeting 55-60% capacity utilization for chipboard in the next fiscal year.
NEW
Plywood/chipboard EBITDA breakeven next year
Expect plywood and chipboard segments to achieve EBITDA breakeven in the next fiscal year.
UPDATED
Full-year revenue growth 18-20%
Management expects FY26 revenue growth to be in the 18-20% range, with Q4 being a strong quarter.
DROPPED
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%.
DROPPED
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.
DROPPED
Chipboard breakeven expected in FY27
Chipboard business is expected to break even at EBITDA level in FY27 as utilization improves.
NEW RISK
Slow ramp-up in plywood and chipboard
Plywood utilization remains at ~35% and chipboard at 41%, well below expectations, leading to continued losses.
NEW RISK
Demand slowdown in domestic market
Management noted slower domestic demand and cash flow challenges among partners, though not quantified.
RISK GONE
Forex losses and higher depreciation
Forex losses and higher depreciation from recent capitalizations are impacting PAT, which declined 7.6% YoY despite revenue growth.
RISK GONE
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.
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Guidance and risk preview
Management expects FY26 revenue growth to be in the 18-20% range, with Q4 being a strong quarter.
US tariffs are currently applicable on laminates; management has partially passed on costs but margins remain under pressure.
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