Greenlam Q1 FY27 Revenue Up 18% YoY

Net Revenue: Stood at INR797 crores, a growth of 18% Year-on-Year (YoY) from INR674 crores in Q1 FY26.
Gross Margin: Was largely flat at 52.9% compared to 53.1% in Q1 FY26. Sequentially, margins grew by 140 basis points.
Gross Profit: Grew by 18% YoY to INR421 crores from INR358 crores.
EBITDA before forex fluctuations: Grew by 48% YoY to INR81 crores from INR55 crores. EBITDA margin was 10.2%, an improvement of 210 basis points from 8.1% in Q1 FY26.
Forex Loss: Was INR1 crore, significantly lower than the INR11 crore loss in Q1 FY26.
Finance Cost: Decreased by 25% to INR20 crores from INR26 crores in Q1 FY26. This decrease included a component where INR3.5 crores of forex was accounted for as finance cost in the previous year.
Net Profit: Stood at INR21 crores, a significant improvement from a net loss of INR15.5 crores in Q1 FY26.

1. Laminates and Allied Segment:

Revenue: INR596 crores, a growth of 7% YoY.
EBITDA Margin (before forex): 13.9%, an improvement of 70 basis points YoY.
Production Volume: 4.9 million sheets.
Capacity Utilization: 80%.
Sales Volume: 4.62 million sheets, a decrease of 6% YoY. This softness is attributed to the postponement of export shipments.
Average Realization: INR1,240 per sheet, a growth of 14% YoY.

2. Plywood and Allied Segment (includes plywood, decorative veneers, engineered floors, and engineered doors):

Revenue: INR106 crores, a growth of 20% YoY from INR88 crores.
EBITDA Loss (before forex): Narrowed to INR5 crores from a loss of INR9 crores in Q1 FY26.
Plywood Production Volume: 1.83 million square meters.
Plywood Capacity Utilization: 39%, up from 28% in Q1 FY26.
Plywood Sales Volume: 1.66 million square meters, a growth of 19% YoY.
Plywood Average Realization: INR276 per square meter, up 4% YoY.
Engineered Wood Floors & Doors Revenue: Approximately INR29 crores for both categories combined.
Engineered Wood Floors & Doors EBITDA Loss: INR1.2 crores for both categories combined.

3. Panel and Allied Segment (Chipboard Business):

Revenue: INR95 crores, a growth of nearly 200% YoY.
EBITDA (before forex): Turned positive at INR3.4 crores, compared to a loss of INR10 crores in Q1 FY26.
Production Volume: 44,838 cubic meters.
Capacity Utilization: 61%, a significant improvement from 30% in Q1 FY26.
Sales Volume: 41,418 cubic meters, a growth of 167% YoY.
Average Realization: INR22,764 per cubic meter, a growth of 15% YoY.

Export Impact: Approximately INR27 crores worth of export shipments were postponed from Q1 due to container and vessel unavailability and increased freight costs caused by the West Asia conflict. This revenue is not lost but is expected to be realized in Q2 FY27.
Price Actions: The company implemented price hikes in April and May 2026 to pass on increased raw material costs (primarily chemicals, which constitute ~35% of raw material cost). Prices were subsequently reduced in June and July as input costs softened. On a net basis, a 7-8% price hike was passed on to customers.
Capacity Expansion: The addition of 2 new laminate press lines is on track, with commercial production expected by Q4 FY27. This will increase capacity for specific laminate categories nearing optimum utilization.
New Product: The HMR (High Moisture Resistant) category introduced in Q4 FY26 continues to gain traction. Plans are in place to introduce more premium products in this category.

FY27 Outlook: Management expects FY27 to be a year of sweating existing assets, with no plans for large capacity additions beyond the ongoing laminate expansion.
Capex: Budgeted capex for FY27 is INR130-135 crores, which includes INR70 crores for the laminate expansion.
Segment Expectations:
Chipboard: Aiming to maintain a capacity utilization of around 70% for the year. At full utilization with a better product mix, the business can achieve margins of 18-20% over time.
Plywood: Targeting capacity utilization of close to 50% for the year and expects the segment to achieve EBITDA breakeven in a quarter during FY27.
Laminate: Maintains a full-year revenue growth guidance of 10-12%.
Debt Reduction: Net debt stood at INR934 crores as of June 2026. The company plans to reduce net debt by approximately INR100 crores in FY27. Further significant debt reduction is expected in FY28 and FY29 as major capex concludes.

Net Debt: INR934 crores as of June 2026.
Working Capital Cycle: Improved by 3 days to 56 days compared to 59 days in Q1 FY26.

Management: