Greenlam Industries (GREENLAM) Q3 24/25 earnings summary

Executive summary

• Commercial production at the new particle board (chipboard) plant in Naidupeta began in January 2025, completing the major CapEx cycle announced in FY22.

• Q3 FY25 saw subdued growth, with consolidated revenue up 6.9% YoY to ₹602 crore, but lower than typical seasonal trends due to festivals, holidays, and muted demand.

• Domestic business grew 2.5% YoY, international business up 12.8% YoY; net profit declined 50.3% YoY to ₹12.5 crore.

• All major capacity expansions across laminates, veneer, flooring, doors, and plywood are now operational, with only minor CapEx pending.

• Board approved unaudited results for Q3 and 9M FY25; limited review by statutory auditors found no material misstatements.

Financial highlights

• Q3 FY25 consolidated net revenue grew 6.9% YoY to ₹602 crore; sequentially, revenue declined from ₹680 crore in Q2.

• Gross margin improved by 20 bps YoY to 55%; EBITDA margin declined 200 bps YoY to 10.6%, with EBITDA at ₹63.5 crore (-10.7% YoY).

• Net profit dropped to ₹12.5 crore from ₹25.3 crore YoY, impacted by lower EBITDA, higher interest, depreciation, and a one-time tax.

• For 9M FY25, revenue grew 12.2% YoY to ₹1,888 crore; net profit declined 31% YoY to ₹67 crore.

• Net working capital cycle increased to 67 days from 59 days in Q2.

Outlook and guidance

• FY25 revenue growth is expected at 12–13%, below the earlier 18–20% guidance; FY26 guidance remains at 18–20% top-line growth.

• Laminate EBITDA margins are expected to recover to 14–15% as volumes improve.

• Particle board plant utilization is targeted at 40–50% in FY26, with break-even expected at 50% utilization.

• Plywood sales are expected to double in FY26 over FY25, with continued strong growth in doors and flooring.

• Management highlights robust balance sheet and leadership across business segments, with capacity creation ahead of demand.