Greenlam Industries (GREENLAM) Q1 25/26 earnings summary

Executive summary

• Completed major greenfield and brownfield expansions, growing from two to five manufacturing plants and expanding product lines from three to six over the last decade.

• Domestic dealer/distributor network increased from 12,000 to 40,000, and international presence expanded to 123 countries.

• Domestic business grew 22.2% year-over-year in Q1FY26, while international business remained flat but showed positive momentum.

• Chipboard segment had its first full quarter of operations, contributing to revenue but incurring initial operating losses.

• Net loss of Rs. 15.7 crores in Q1FY26, mainly due to forex losses and higher costs from new chipboard operations.

Financial highlights

• FY 2025 revenue reached INR 2,569 crore, up from INR 925 crore in FY 2015; Q1FY26 consolidated revenue at Rs. 673.8 crores, up 11.4% year-over-year.

• Gross margin improved from 43% to 52% over the decade; Q1 gross margin at 53.1%, up 110 bps year-over-year.

• Q1 EBITDA margin at 8.1%, down 250 bps year-over-year due to chipboard ramp-up losses.

• Q1 net loss of INR 15.7 crore, mainly due to INR 18.8 crore forex loss on euro-denominated chipboard loan.

• Laminates & Allied segment revenue grew 3.8% year-over-year; Plywood & Allied segment revenue up 25% year-over-year.

Outlook and guidance

• Revenue growth guidance of 18%-20% CAGR over the next three to four years remains intact.

• Investments made until FY 2025 expected to generate INR 4,500 crore revenue in the next 3-4 years.

• Margin improvement anticipated as new capacities ramp up and value mix improves.

• Plywood segment expected to reach EBITDA breakeven this year, with expansion into new states.

• Focus on strengthening international presence and leveraging technology for efficiency and growth.