Greenlam Industries (GREENLAM) Q3 25/26 earnings summary

Executive summary

• Consolidated net revenue grew 17.3% YoY to INR 706.37 crore in Q3FY26, with nine-month revenue up to INR 2,188.42 crore, driven by broad-based performance across domestic and international segments.

• Brand architecture streamlined to focus on Greenlam and Mikasa, consolidating product lines and enhancing marketing efficiency, including rebranding 'NewMika' to 'Mikasa Laminates'.

• Recognized as India's largest exporter of laminates for the 16th consecutive year at the Plexconcil Export Awards 2025.

• Launched High Moisture Resistant (HMR) chipboard, well received in the market.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, with limited review by statutory auditors.

Financial highlights

• Gross margin improved to 55.6% in Q3, up 60 bps YoY, with gross profit at INR 392.5 crore; nine-month gross margin at 54.4%.

• Q3 EBITDA margin before forex and exceptional items declined to 9.2% from 10.9% last year, mainly due to higher operating costs and chipboard unit ramp-up.

• Net loss of INR 0.6 crore in Q3FY26, impacted by higher costs, forex fluctuations, exceptional wage code item, and increased depreciation and interest from new chipboard operations.

• Working capital cycle improved by 9 days to 58 days; net debt stood at INR 1,010 crore as of December 31, 2025.

• Exceptional items included a provision of INR 6.16 crore in consolidated results due to new labour code provisions.

Outlook and guidance

• FY26 revenue growth guidance of 18-20% maintained, with slight downside risk depending on Q4 performance.

• Management anticipates Q4 to be a stronger quarter, with improved profitability and revenue across divisions.

• Brownfield expansion of laminate manufacturing at Naidupeta, Andhra Pradesh, is on schedule, with commercial production expected by Q4 FY27.

• Strategic brand consolidation expected to enhance customer experience and reinforce market leadership.

• Confident in building the HMR chipboard segment following positive market acceptance.