Greenlam Industries (GREENLAM) Q4 24/25 earnings summary

Executive summary

• FY2025 consolidated revenue grew 11.4% year-over-year to INR 2,569.34 crore, but net profit declined 50% to INR 68.35 crore due to higher costs from new plant ramp-ups and slower H2 growth.

• Major capacity expansions completed, including three new plants (Plywood, Laminate, Particle Board), with chipboard operations commencing in January 2025.

• Laminates & Allied segment remained the largest contributor, with 9.2% revenue growth year-over-year.

• Board recommended a final dividend of INR 0.40 per share and issued bonus shares in a 1:1 ratio, doubling paid-up equity.

• Focus for FY2026 is on execution, ramping up utilization, and strengthening the balance sheet as expansions are now largely complete.

Financial highlights

• Q4 FY2025 consolidated net revenue up 9.2% year-over-year and 13.2% sequentially to INR 682 crore.

• FY2025 EBITDA margin fell 210 bps to 10.7%; net profit down 50% to INR 68.3 crore; PAT margin declined to 2.7%.

• Net debt at INR 989 crore as of March 31, 2025, down from INR 1,012.1 crore at December 31, 2024.

• Gross margin for FY25 was 52.3%, down 50 bps year-over-year.

• Earnings per share (consolidated, basic and diluted) for FY25 was ₹2.68, compared to ₹5.41 in FY24.

Outlook and guidance

• Revenue potential of INR 4,000-5,500 crore over the next three years without further capacity addition.

• Laminate segment margin guidance for FY2026 is 14-15%.

• Particle board breakeven expected in FY2027 at 45% utilization; 35-40% utilization targeted for FY2026.

• Focus remains on improving profitability in new segments and optimizing costs.

• Debt reduction expected to begin in earnest from next year as CapEx winds down.