Greenlam Industries Limited Q4 & FY26 Earnings Conference Call

Disclosure Type: Transcript of Earnings Call pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015

Financial Performance Highlights

Q4 FY26 Consolidated Performance (Year-on-Year):

  • Net revenue grew 26% to INR858 crores (from INR682 crores in Q4 FY25)
  • Gross margin improved 80 bps to 51.5% (from 50.7%)
  • Gross profit increased 28% to INR442 crores (from INR345 crores)
  • EBITDA before forex fluctuation grew 57% to INR107 crores (from INR68 crores)
  • EBITDA margin before forex improved 250 bps to 12.5% (from 10.0%)
  • Net profit stood at INR40 crores

FY26 Consolidated Performance (Year-on-Year):

  • Net revenue grew 18.6% to INR3,046 crores (from INR2,569 crores)
  • Gross margin improved 130 bps to 53.6% (from 52.3%)
  • Gross profit increased 22% to INR1,633 crores (from INR1,343 crores)
  • EBITDA before forex fluctuation grew 21% to INR334 crores (from INR276 crores)
  • EBITDA margin before forex improved 30 bps to 11.0% (from 10.7%)
  • Net profit declined 18% to INR56 crores (from INR68 crores)
  • Net debt stood at INR940 crores as of March 31, 2026
  • Working capital cycle maintained at 57 days despite new chipboard business

Segmental Performance Breakdown

Laminate and Allied Segment (Q4 FY26):

  • Revenue grew 14% YoY to INR658 crores (from INR575 crores)
  • EBITDA margin before forex: 17.2% (350 bps improvement YoY)
  • Production volume: 4.87 million sheets at 79% utilization
  • Sales volume: 5.15 million sheets, growing 4.5% YoY
  • Average realization: INR1,243 per sheet

Laminate and Allied Segment (FY26):

  • Revenue grew 9.3% YoY to INR2,433 crores
  • EBITDA margin before forex: 15.9% (210 bps improvement YoY)
  • Production volume: 21.01 million sheets at 86% utilization
  • Sales volume: 20.65 million sheets, growing 4.6% YoY
  • Average realization: INR1,144 per sheet
  • Highest-ever EBITDA of nearly INR400 crores

Plywood and Allied Segment (Q4 FY26):

  • Revenue grew 18% YoY to INR119 crores (from INR101 crores)
  • EBITDA loss before forex: INR3.8 crores
  • Includes plywood, decorative veneer, engineered floors, and engineered doors

Plywood and Allied Segment (FY26):

  • Revenue grew 18.4% YoY to INR400 crores (from INR338 crores)
  • EBITDA loss before forex: INR29.5 crores

Panel and Allied (Chipboard) Segment (Q4 FY26):

  • Revenue: INR80 crores (47% growth quarter-on-quarter)
  • EBITDA loss before forex: INR2.2 crores
  • Production volume: 35,300 cubic meters at 49% utilization (highest utilization level)
  • Sales volume: 38,800 cubic meters (34% growth QoQ)
  • Average realization: INR20,562 per cubic meter

Panel and Allied (Chipboard) Segment (FY26):

  • Revenue: INR213 crores
  • EBITDA loss before forex: INR23 crores
  • Production volume: 113,450 cubic meters at 39% utilization
  • Sales volume: ~110,000 cubic meters
  • Average realization: INR19,370 per cubic meter

Strategic and Operational Updates

Business Performance Context:

  • FY26 marked first full year of operating all 5 factories after 3 years of capacity additions
  • Company consolidated brand strategy from multiple brands to two main brands: Greenlam (laminates and melamine chipboard) and Mikasa (plywood, laminates, veneers, flooring, doors)
  • Raw material cost increases due to geopolitical conflicts were largely passed through to market:
  • Domestic market: Full pass-through
  • Export market: 4-5% price increase plus benefit from rupee depreciation
  • Additional freight costs passed through as per customer agreements
  • Some softening in chemical raw material costs observed, with minor price corrections implemented

Capacity Expansion Plans:

  • Two new laminate lines to be added at Andhra Pradesh plant, coming into production by end-FY27
  • No additional capacity expansions planned for FY27 beyond these laminate lines
  • Focus on optimizing utilization of existing capacities

Segment Outlook and Guidance:

  • Laminates: Expected 10-12% revenue growth in FY27; peak utilization can reach 108-110%
  • Plywood: Not going pan-India in FY27; focusing on existing markets (South, Western, Eastern India); Q4 utilization at 45-50%; target to reach near full capacity utilization by FY28
  • Chipboard: Targeting EBITDA breakeven at ~50% utilization; expected to breakeven in FY27
  • Overall: Guided for 18% revenue growth in FY27

Market and Competitive Environment:

  • Domestic laminate market seeing consolidation with larger players gaining share vs unorganized/mid-sized companies
  • International competition includes regional players, global players (Wilsonart, Formica Group), and Indian exporters
  • European market focus with two warehouses (Italy, Germany) and local teams in multiple countries
  • Middle East exports impacted in March and April 2026 but normalized in May

Product Development:

  • Chipboard segment launched HMR (High Moisture Resistance) product in Q3 FY26
  • Introduced matching edge banding for pre-laminated particle boards
  • Plans to add more premium items in chipboard category

Management Commentary

Mr. Saurabh Mittal emphasized that FY26 was an important execution year after three years of capacity expansion. He expressed confidence in maintaining growth momentum despite raw material cost challenges and expected new businesses (chipboard and plywood) to reach breakeven in FY27. The company views current market challenges as opportunities to gain market share.

Mr. Ashok Sharma provided detailed financial performance and noted that debt reduction of approximately INR50 crores is planned for FY27.