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Greenlam Industries Ltd
NSE: GREENLAM BSE: 538979 INE544R01021 Consumer Discretionary Consumer 🔎 Screen
₹6,435 Cr
Market Cap
114.1
P/E
PEG
8.1%
ROCE
5.0%
ROE
0.98
D/E
10.8%
OPM
+9.5%
% from 52W High
70
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Greenlam Industries is engaged in the business of manufacturing laminates, decorative veneers and allied products.

✓ Strengths

No strengths data yet.

! Concerns 3
  • Stock is trading at 5.48 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 7.89% over last 3 years.
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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Strong beat: Revenue +25.8% YoY, EBITDA margin +250bps to 12.5%, PAT swung from ₹1.5 Cr to ₹40.5 Cr, driven by broad-based growth and chipboard ramp-up. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹857.7 Cr
+25.8% YoY
EBITDA Margin
12.5%
+250 bps YoY (ex-forex)
PAT
₹40.5 Cr
vs ₹1.5 Cr YoY, swing of ₹39 Cr
Chipboard Revenue
₹79.8 Cr
+47.3% QoQ; full year ₹212.8 Cr
What Went Right
  • Revenue grew 25.8% YoY to ₹857.7 Cr, with all segments contributing.
  • EBITDA (ex-forex) jumped 57.1% YoY to ₹107.4 Cr; margin expanded 250bps to 12.5%.
  • PAT recovered sharply to ₹40.5 Cr from ₹1.5 Cr in Q4FY25, a 2641% increase.
  • Chipboard segment revenue rose 47.3% QoQ to ₹79.8 Cr, indicating ramp-up traction.
  • Working capital improved 4 days YoY to 51 days; net debt reduced to ₹940 Cr from ₹989 Cr.
What to Watch
  • Gross margin dropped 410bps sequentially to 51.5% due to rising raw material prices from geopolitical issues.
  • Plywood segment remained loss-making with EBITDA of -₹3.8 Cr and negative margin of -3.2%.
  • Panel & Allied segment posted EBITDA loss of -₹2.2 Cr; full-year loss -₹23.1 Cr.
  • Annual PAT declined 18.1% to ₹56.0 Cr despite revenue growth of 18.6%, due to higher interest and depreciation from new capacities.
  • Chipboard capacity utilization still low at 49% (annualized), indicating under-absorption of fixed costs.
Management Guidance
  • Management noted that raw material price hikes were fully passed on to markets from April 2026 onwards.
Investor Lens
The quarterly beat is encouraging but does not fully offset the weak annual performance. Revenue growth is broad-based, but margin compression from raw materials and low capacity utilization in new plants keep profitability under pressure. The chipboard ramp-up is promising but still negative EBITDA. Key metrics to watch: sequential gross margin trends post April price hikes, plywood breakeven timeline, and debt reduction trajectory given net debt of ₹940 Cr (0.8x equity). ROE remains low at 4.7% for FY26. Thesis is intact but execution on margin recovery and capital efficiency is critical.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue up 26% YoY, OPM improves to 13%; net profit surges on low base.
Revenue
Revenue grew 25.8% YoY to ₹858.0 Cr, and rose 21.5% QoQ. This marks robust top-line expansion driven by underlying demand.
Profitability
Net profit surged 4000% YoY to ₹41.0 Cr, aided by a low base of ₹1.0 Cr. EPS improved from ₹0.08 to ₹1.55. Tax rate was 22%.
Margins
Operating profit margin (OPM) rose sharply to 13% from 9% last year and 10% last quarter, reflecting operating leverage and cost control. Operating profit grew 68.8% YoY.
Balance Sheet
Borrowings stood at ₹1,171 Cr against reserves of ₹1,111 Cr, resulting in a D/E ratio of 1.03. ROCE and ROE are low at 8.25% and 5.23% respectively, indicating high capital intensity.
Key Risks
High debt levels with D/E above 1.0 strain profitability. Low ROE of 5.23% suggests weak return on equity. A PE of 103x implies elevated valuation multiples.
Outlook
Continued revenue growth and margin improvement are positive, but high debt and low returns remain concerns. Sustained momentum in demand and debt reduction will be key.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
Laminates & Allied Products
658
EBIT 140
562
EBIT 100
Panel & Allied Products
48
EBIT -22
54
EBIT -14
Plywood & Allied Products
103
EBIT -5
90
EBIT -13
Total 808 706

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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📊 Analysis Methodology

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