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Greenlam Industries Ltd
NSE: GREENLAM BSE: 538979 INE544R01021 Consumer Durables Plywood Boards/ Laminates 🔎 Screen
₹5,888 Cr
Market Cap
103.0
P/E
PEG
8.3%
ROCE
5.2%
ROE
1.03
D/E
10.8%
OPM
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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 4
  • Stock is trading at 4.96 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 8.04% over last 3 years.
  • Dividend payout has been low at 9.95% of profits over last 3 years
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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Strong beat driven by broad-based revenue growth (25.8% YoY) and cost control; PAT swung from ₹1.5 Cr (Q4FY25) to ₹40.5 Cr. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹857.7 Cr
+25.8% YoY
EBITDA Margin
12.5%
+250 bps YoY, pre-forex
PAT
₹40.5 Cr
vs ₹1.5 Cr in Q4FY25, -₹0.6 Cr in Q3FY26
Net Debt
₹940.1 Cr
down from ₹989.1 Cr in FY25, D/E 0.80x
What Went Right
  • Revenue grew 25.8% YoY to ₹857.7 Cr, with all segments contributing; laminates +14.4%, plywood +17.9%, chipboard up from ₹5 Cr to ₹79.8 Cr.
  • EBITDA (pre-forex) jumped 57.1% to ₹107.4 Cr, margin expanded 250 bps to 12.5% due to revenue growth and cost controls.
  • Laminates segment EBITDA margin rose 350 bps YoY to 17.2%, driven by higher realisations (+11.7%) and volume growth (+4.5%).
  • Working capital days improved 4 days YoY to 51 days; net debt reduced to ₹940.1 Cr from ₹989.1 Cr.
  • Chipboard revenue grew 47.3% QoQ to ₹79.8 Cr, with capacity utilisation rising to 49% from 41% in Q3FY26.
What to Watch
  • Gross margin contracted 410 bps sequentially to 51.5% due to a sharp spike in raw material costs from geopolitical issues; the full hike was passed on only from April 2026 onwards.
  • Plywood & Allied segment remained EBITDA-negative at -₹3.8 Cr (pre-forex), though losses narrowed slightly from -₹3.2 Cr in Q4FY25; margin was -3.2%.
  • Panel & Allied (chipboard) continued to incur EBITDA losses of -₹2.2 Cr (pre-forex) despite revenue ramp-up, reflecting high fixed costs at low utilisation.
  • Full-year PAT declined 18.1% to ₹56.0 Cr (FY26 vs FY25), weighed by interest costs (₹96.2 Cr, +47%) and higher depreciation (₹141.5 Cr).
  • ROE for FY26 was only 4.7%, down from 6.1% in FY25, reflecting weak returns on the expanded capital base.
Investor Lens
Greenlam delivered a strong Q4, propelled by broad-based revenue growth and margin expansion in laminates, which remains the core profit engine. The chipboard plant is scaling well (QoQ revenue +47%) but is still loss-making, and plywood EBITDA is negative. The sequential gross margin compression from raw material inflation is a near-term concern, though management has passed on price hikes from April. Full-year profitability trends (PAT -18%, ROE 4.7%) highlight the drag from heavy capex, interest, and depreciation. Net debt remains high at ₹940 Cr but is declining. The investment thesis hinges on chipboard and plywood reaching breakeven and improving overall returns. Watch for raw material cost evolution, chipboard volume trajectory, and working capital discipline next quarter.
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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