Greenlam Industries Ltd

Financial Performance

• Net revenue: ₹797 crore in Q1 FY27, up 18% YoY.
• EBITDA before forex: ₹81 crore; EBITDA margin before forex: 10.2%.
• Gross margin: 52.9%; versus 53.1% in the prior period.
• Forex losses: ₹1 crore (vs ₹11 crore last year).
• Net profit: ₹21 crore (vs a ₹15.5 crore loss in Q1 FY26).
• Laminate revenue: ₹596 crore; volumes 4.62 million sheets; capacity 80%.
• Laminate realization: ₹1,240 per sheet; EBITDA margin: 13.9% before forex.
• Plywood & Allied revenue: ₹106 crore; EBITDA before forex: ₹-5 crore; capacity 39%.
• Panel & Allied (Chipboard) revenue: ₹95 crore; EBITDA before forex: ₹3.4 crore; capacity 61%.
• Working capital cycle: 56 days, improved by 3 days.
• Net debt: ₹934 crore as of June.
• Export shipments postponed: around ₹25–₹30 crore to next quarters due to container/vessel shortages.
• Export-related cost pressure from West Asia; freight and input costs volatile.

Operating Update

• Laminate: production 4.9 million sheets; volumes 4.62 million; realization ₹1,240/sheet.
• Plywood: production 1.83 million sqm; sales 1.66 million sqm; realization ₹276/sqm.
• Chipboard: revenue ₹95 crore; volumes 41,418 cbm; realization ₹22,764 per cbm.
• Chipboard EBITDA before forex: ₹3.4 crore; utilization 61%.
• HMR premium category launched; aiming to expand premium mix in chipboard.
• International business performing well; cost controls aiding margin resilience.

Balance Sheet and Cash Flow

• Net debt at ₹934 crore as of June.
• Working capital cycle improved to 56 days (3 days better YoY).

Projects and Capex

• FY27 capex guidance: ₹130–₹135 crore; includes laminate expansion of ₹70 crore.
• Laminate press lines: 2 new lines on track; commercial production by Q4 FY27.
• No large capacity additions planned in FY27; focus on optimizing existing assets.

Outlook and Guidance

• Laminate revenue growth forecast: 10–12% for FY27.
• Laminate EBITDA margin guidance: ~15–16%.
• Plywood EBITDA breakeven expected this year (FY27).
• Debt-reduction target: ~₹100 crore in FY27; ~₹150 crore in FY28 (subject to cash flow).
• Middle East share ~6–7% of business; domestic demand remains stable.
• Export volatility and raw-material price moves may impact quarterly performance.

Q&A Highlights

• Container/vessel shortages causing export delays; 25–30 crore export moved to current quarter; future impact uncertain.
• Laminate capacity expansion seen as earnings accretive; no major capex beyond planned laminate line.
• Prelaminated chipboard mix around 61% utilization; annual average target ~70%; potential 18–20% EBITDA at full capacity.
• Plywood: EBITDA breakeven targeted in FY27; pan-India expansion underway; South-focused to West/Central expansion.
• Debt trajectory tied to repayment schedules; cash flow used for debt reduction after required capex.
• Raw-material price volatility driven by chemicals; management expects pass-through to customers.

Risks and Watchpoints

• Volatility in input prices (chemicals), currencies, and freight; West Asia disruptions.
• Export delays could impact quarterly revenue realization; timing risk to shipments.
• Raw-material cost pass-through effectiveness remains uncertain amid market volatility.
• Progress on plywood break-even depends on regional demand and cost dynamics.

Meeting Details

• Date: August 12, 2026.
• Type/Mode: Analyst/institutional investor meeting; in-person group event in Mumbai.
• Event/Organizer: Analyst/Institutional Investor Meet.

Participants

• Attendees: company officials; management roles not specified.
• Company team participated in the investor meet.

Purpose

• Purpose: discussions based on publicly available information; no unpublished price-sensitive information shared.

Additional Notes

• No recording or transcript mentioned.

Meeting Details

• Date and time: August 10, 2026; earnings call for Q1 FY27.
• Type and mode: group conference call; virtual audio discussion.
• Organizer: Greenlam Industries Limited; purpose: discuss Q1 FY27 operational and financial performance.
• Availability: audio recording available on the company's website.

Business Overview

• Core business: integrated manufacturing of laminates, plywood, chipboard, veneers, engineered wood floors, and doors.
• Strategic updates include capacity expansion and international footprint expansion.

Key Operational Highlights

• Q1 FY27 revenue ₹796.7 Cr, up 18.2% YoY.
• Chipboard revenue ₹94.6 Cr, YoY growth 205.2%.
• Gross margin 52.9%, EBITDA margin 10.2% (before forex).
• EBITDA without forex ₹81.1 Cr; PAT ₹21.2 Cr.
• Working capital days 56; net debt ₹933.7 Cr; total debt ₹1,012.2 Cr.
• Exports delayed by ~₹27 Cr due to freight and FX volatility.

Financial Performance

• Revenue ₹796.7 Cr; YoY growth 18.2%.
• Gross profit ₹421.4 Cr; gross margin 52.9%.
• EBITDA without forex ₹81.1 Cr; EBITDA margin 10.2%.
• PAT ₹21.2 Cr; swung from ₹-15.7 Cr in Q1FY26.
• Laminates net revenue ₹596.1 Cr; Plywood ₹106.0 Cr; Panel & Allied ₹94.6 Cr.
• Chipboard sales 41,418 CBM; capacity utilization 61%.

Capital Structure & Liquidity

• Total debt ₹1,012.2 Cr; cash ₹78.5 Cr; net debt ₹933.7 Cr.

Strategic Priorities & Outlook

• Scalable capacity expansion designed to avoid disruption.
• Renewable electricity raised to 11 MW; 355 TJ energy saved.
• Waste circularity and water stewardship improvements; 64 million litres saved.
• Certifications (Greenguard, FSC, PEFC, GRIHA) underpin sustainability.

Risks & Mitigation

• Geopolitical turbulence increased freight costs and FX volatility.
• Diversified product mix and cost controls support resilience.

Governance & Leadership

• No material governance changes disclosed.

Financial highlights

• Net revenue ₹796.7 crore, up 18.2% YoY.
• EBITDA before forex and exceptional items ₹81.1 crore, +48.3% YoY.
• Profit after tax ₹21.2 crore; swing from ₹-15.7 crore in Q1FY26.
• Gross margin 52.9%; EBITDA margin 10.2%.
• Working capital days 56; 3-day improvement YoY.
• Chipboard EBITDA turned positive at ₹3.4 crore.
• Chipboard revenue growth 205% YoY.
• Laminate segment revenue growth 7.4% YoY.
• Net debt ₹933.7 crore as of June 30, 2026.
• Laminate international sales grew on better mix and currency.
• Plywood & allied products segment grew 20.4% YoY.

Segment performance

• Laminate international sales grew on better mix and currency.
• Plywood & allied products segment grew 20.4% YoY.
• Chipboard EBITDA positive at ₹3.4 crore in Q1FY27.

Management commentary / Outlook

• Geopolitical volatility and logistics challenges affected costs; revenue grew YoY.
• Management focused on growth opportunities across markets.
• Chipboard profitability turning EBITDA positive signals long-term potential.

Financial results approved

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Limited Review Reports attached from statutory auditors.

Standalone highlights

• Revenue from operations: ₹584.41 crore.
• Total income: ₹587.01 crore.
• Profit before tax: ₹30.13 crore.
• Profit after tax: ₹22.51 crore.
• Basic earnings per share: ₹0.88.

Consolidated highlights

• Consolidated net sales / income from operations: ₹796.70 crore.
• Consolidated PBT: ₹30.93 crore.
• Consolidated results include 15 subsidiaries/steps, not all audited.

Expansion update

• Brownfield laminate capacity expansion at Naidupeta plant; equipment ordered; production by Q4 FY27.

Notes on forex

• Standalone note records net forex loss ₹1.26 crore due to ECB revaluation.

Auditor remarks

• Limited review reports attached; no material misstatement observed.

Meeting Details

• Date & time: 13 August 2026, 10:00 am onwards.
• Nature: One-on-One/Group meeting.
• Organiser: Equirus Annual India Conference 2026.
• Place: Mumbai.

Participants

• Key company participant: Company Secretary & Senior Vice President-Legal.

Purpose

• Purpose: Investor conference interaction; discussions based on publicly available information.

Meeting Details

• Date & time: 13 August 2026, 10:00 am onwards.
• Nature: One-on-One/Group Meeting.
• Organised by: Equirus Annual India Conference 2026.
• Place: Mumbai.
• Purpose: investor conference discussions based on public information; no unpublished price-sensitive information will be shared.
• Key participants: Company officials to attend.

Meeting Details

• Date/time: 12 August 2026, 11:00 am onwards.
• Type/mode: One-on-One/Group Meeting, physical in Mumbai.
• Event: Analyst/Institutional Investor Meet.

Participants

• Company officials to attend, including Company Secretary & Senior Vice President-Legal.

Purpose

• Discuss based on publicly available information with investors.

Meeting Details

• Board meeting on August 07, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated results for quarter ended June 30, 2026.

Other Notes

• Trading window closed for designated persons and relatives from July 01 to Aug 10, 2026.
• Analysts and Investor Meet scheduled on August 10, 2026.