Greenlam long-term borrowings fall 16%, cash flow drops 27%

Greenlam Industries Limited reduced consolidated non-current borrowings by Rs 111.91 crore, or 16%, to Rs 595.33 crore at September 30, 2026, while net cash flow from operating activities fell 27% year on year to Rs 111.81 crore in the half year as working-capital movements used Rs 49.97 crore.

How much did Greenlam’s long-term debt change?

Greenlam’s consolidated non-current borrowings fell to Rs 595.33 crore at September 30, 2026 from Rs 707.24 crore at March 31, 2026, a reduction of Rs 111.91 crore. Its half-year cash-flow statement records Rs 96.85 crore of repayments of long-term borrowings, compared with Rs 23.69 crore repaid in the half year ended September 30, 2025.

The decline in non-current borrowings occurred alongside higher current borrowings. Consolidated current borrowings rose by Rs 57.64 crore to Rs 397.00 crore at September 30, 2026 from Rs 339.36 crore at March 31, 2026. Total reported borrowings, excluding lease liabilities, therefore declined by Rs 54.27 crore to Rs 992.33 crore rather than by the full non-current borrowing reduction.

Lease liabilities also declined during the six months. Non-current lease liabilities fell to Rs 70.28 crore from Rs 79.40 crore, while current lease liabilities decreased to Rs 32.68 crore from Rs 34.41 crore. Greenlam reported net lease-liability payments of Rs 12.24 crore for the half year ended September 30, 2026, versus Rs 13.23 crore a year earlier.

Why did Greenlam’s operating cash flow decline?

Greenlam’s net cash flow from operating activities fell by Rs 41.06 crore to Rs 111.81 crore for the half year ended September 30, 2026, from Rs 152.87 crore in the prior-year half. Cash generated from operations before tax payments decreased to Rs 132.94 crore from Rs 173.96 crore, while income tax paid was Rs 21.13 crore against Rs 21.09 crore a year earlier.

The cash-flow decline reflected working-capital movements. Greenlam recorded a Rs 49.97 crore working-capital outflow in the 2026 half year, compared with an outflow of Rs 2.56 crore in the prior-year period. This followed an increase in operating cash flow before working-capital changes to Rs 182.90 crore from Rs 176.52 crore.

Inventory used Rs 36.98 crore of cash, compared with Rs 46.27 crore in the previous half year, while trade and other receivables used Rs 23.09 crore compared with Rs 47.57 crore. Cash generated from trade payables was Rs 10.10 crore, materially below Rs 91.28 crore in the corresponding 2025 period, reducing the offset to the inventory and receivables outflows.

What happened to Greenlam’s inventory and receivables?

Greenlam’s consolidated inventory rose by Rs 36.98 crore to Rs 800.91 crore at September 30, 2026 from Rs 763.93 crore at March 31, 2026. The balance-sheet increase matched the inventory cash outflow reported for the half year, during which consolidated revenue from operations rose to Rs 1,671.88 crore from Rs 1,482.05 crore a year earlier.

Consolidated trade receivables increased to Rs 241.57 crore at September 30, 2026 from Rs 218.68 crore at March 31, 2026, an increase of Rs 22.89 crore. The cash-flow statement reports a Rs 23.09 crore outflow for trade and other receivables, a category that includes receivables beyond the separately reported trade-receivable balance.

Trade payables to creditors other than micro and small enterprises rose to Rs 505.48 crore from Rs 467.11 crore over the six months. Dues to micro and small enterprises, however, fell to Rs 32.90 crore from Rs 40.23 crore, while the cash-flow statement reported a Rs 10.10 crore net inflow from trade payables.

How did Greenlam’s finance costs and profit change?

Greenlam’s consolidated finance costs declined 22% to Rs 39.15 crore in the half year ended September 30, 2026 from Rs 49.88 crore a year earlier. Interest paid declined by Rs 11.42 crore to Rs 38.13 crore, while the cash-flow statement also showed Rs 42.58 crore of net short-term borrowings during the period.

Revenue from operations increased by Rs 189.83 crore to Rs 1,671.88 crore in the half year ended September 30, 2026. Profit before tax rose to Rs 67.18 crore from Rs 31.64 crore, and profit for the period increased to Rs 45.72 crore from Rs 16.06 crore, although operating cash flow was lower than the prior-year half.

Panel & Allied Products recorded first-half revenue of Rs 201.59 crore, up from Rs 78.78 crore a year earlier, and its segment loss narrowed to Rs 5.04 crore from Rs 56.65 crore. Laminates & Allied Products revenue increased to Rs 1,254.11 crore from Rs 1,212.73 crore, while its segment result decreased to Rs 204.49 crore from Rs 237.39 crore.

How did financing and investment flows affect Greenlam’s cash balance?

Greenlam used Rs 112.31 crore in financing activities during the half year ended September 30, 2026, compared with Rs 124.50 crore used a year earlier. The financing outflow included Rs 96.85 crore of long-term debt repayments, Rs 38.13 crore of interest paid and Rs 10.21 crore of dividend and corporate dividend tax payments, partly offset by Rs 42.58 crore of net short-term borrowings.

Investing activities used Rs 16.61 crore, lower than Rs 44.59 crore in the prior-year half. Acquisitions of property, plant and equipment, including capital work-in-progress, were Rs 37.86 crore versus Rs 62.60 crore, while transactions in investments generated a net inflow of Rs 18.93 crore compared with an inflow of Rs 14.48 crore a year earlier.

After operating, investing and financing flows, Greenlam’s cash and cash equivalents declined by Rs 17.11 crore in the half year to Rs 46.75 crore at September 30, 2026. The closing cash balance was above Rs 26.28 crore at September 30, 2025 but below the Rs 63.86 crore reported at the beginning of the 2026 financial year.

Conclusion

Greenlam lowered consolidated non-current borrowings by Rs 111.91 crore in the half year ended September 30, 2026, supported by Rs 96.85 crore of long-term debt repayments. However, current borrowings rose and total borrowings declined by Rs 54.27 crore, while a wider working-capital outflow reduced operating cash flow to Rs 111.81 crore despite higher revenue and profit.

The next disclosed milestone is Greenlam Limited’s brownfield expansion of laminate manufacturing capacity by 2.0 million sheets or boards annually at Naidupeta, Andhra Pradesh. Management said major equipment has been ordered and machine-foundation civil work has started, with commercial production expected in the fourth quarter of FY27; subsequent capital expenditure, cash flow and borrowing data will show the project’s funding effects.