Greenlam Industries (GREENLAM) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue rose 8.3% YoY to ₹875.18 crore, while profit attributable to owners fell to ₹24.48 crore from ₹32.33 crore.

• Laminates growth and profitability were pressured by weaker volumes and export logistics; chipboard ramped up and plywood losses narrowed. Management expects H2 to outperform H1.

Financial highlights

• Q2 gross profit rose 2.1% YoY to ₹450.5 crore; gross margin declined 310 bps to 51.5%.

• Q2 EBITDA before forex fell 19.0% YoY to ₹86.5 crore, with a 9.9% margin, down 330 bps; PAT fell 22.9% to ₹24.5 crore.

• H1 revenue increased 12.8% to ₹1,671.88 crore; EBITDA before forex rose 3.8% to ₹167.7 crore and PAT to ₹45.72 crore from ₹16.06 crore.

• Consolidated PBT was ₹36.25 crore in Q2 versus ₹46.12 crore; H1 PBT rose to ₹67.18 crore from ₹31.64 crore.

• Q2 EBIT declined 20.2% YoY to ₹55.9 crore; H1 EBIT grew 30.4% to ₹106.3 crore.

Outlook and guidance

• FY revenue growth guidance was revised to 16%-18% from 18%-20%; management expects H2 to outperform H1 as export challenges ease.

• H2 profitability is expected to improve over H1, with no specific margin guidance; laminate growth may miss the earlier 10%-12% FY target.

• Naidupeta's 2.0 million-sheet annual laminate expansion remains on schedule for commercial production by Q4 FY27; full plywood capacity utilization is targeted around FY 2029, with efforts to accelerate it.