Greenlam Q2 revenue rises 8.3% while EBITDA falls 19.0%

Greenlam Industries Limited reported Q2FY27 revenue of Rs 875.2 crore, up 8.3% year on year, but EBITDA before foreign-exchange effects fell 19.0% to Rs 86.5 crore as gross margin declined 310 basis points to 51.5%, reflecting raw-material price fluctuations, product mix changes and higher freight costs.

Why did Greenlam’s Q2FY27 earnings decline despite revenue growth?

Greenlam’s earnings declined because revenue growth was outpaced by cost increases. Revenue rose 8.3% to Rs 875.2 crore in Q2FY27, while gross profit increased only 2.1% to Rs 450.5 crore and raw-material expense increased to Rs 424.6 crore from Rs 366.9 crore in Q2FY26.

Gross margin fell to 51.5% from 54.6%, a decline of 310 basis points, or bps. Management attributed the decline to fluctuations in raw-material prices and a change in product mix during the quarter.

Management also cited geopolitical turbulence related to the Middle East war, including movements in crude prices, crude-linked commodities and foreign-exchange rates. According to management, the disruption raised freight costs, delayed container and vessel availability, and lengthened transit times in Q2FY27.

EBITDA, or earnings before interest, tax, depreciation and amortisation, before forex had a margin of 9.9% in Q2FY27, down 330 bps from 13.2% a year earlier. EBITDA including forex declined 18.9% to Rs 84.7 crore, while the forex loss narrowed to Rs 1.9 crore from Rs 2.4 crore.

How did Greenlam’s Q2FY27 results compare with Q1FY27 and H1FY26?

Greenlam’s Q2FY27 revenue and profit improved sequentially from Q1FY27, although margins remained below the prior-year quarter. Revenue increased 9.9% from Rs 796.7 crore, gross profit rose 6.9% from Rs 421.4 crore, and EBITDA before forex increased 6.7% from Rs 81.1 crore.

The sequential revenue increase did not prevent further margin pressure. Gross margin declined 140 bps from 52.9% in Q1FY27 to 51.5%, while EBITDA-before-forex margin declined 30 bps from 10.2% to 9.9%; other expenses rose to Rs 200.9 crore from Rs 171.9 crore.

Profit after tax increased 15.3% sequentially to Rs 24.5 crore from Rs 21.2 crore. Profit before tax rose 17.2% to Rs 36.3 crore, supported by other income of Rs 6.9 crore against Rs 6.0 crore in Q1FY27, while interest was Rs 19.7 crore compared with Rs 19.5 crore.

For H1FY27, Greenlam reported revenue of Rs 1,671.9 crore, up 12.8% from Rs 1,482.0 crore in H1FY26. EBITDA before forex increased 3.8% to Rs 167.7 crore, slower than revenue growth, and its margin declined 90 bps to 10.0%; profit after tax rose to Rs 45.7 crore from Rs 16.1 crore.

Which businesses shaped Greenlam’s Q2FY27 performance?

Greenlam’s chipboard business was the principal reported growth contributor, with Q2FY27 revenue of Rs 107.0 crore, up 123.9% year on year and 13.1% quarter on quarter. The business recorded pre-forex EBITDA of Rs 8.7 crore and remained in operating profit, according to management.

Plywood and Allied generated revenue of Rs 110.2 crore in Q2FY27, with its loss reducing by Rs 1.4 crore. These developments contrasted with the laminate business, which management said was flat in value terms and down 12.0% in volume terms across domestic and international operations.

The Laminates and Allied segment reported unchanged Q2FY27 net revenue of Rs 658.0 crore. Its EBITDA before forex fell 32.8% to Rs 79.3 crore, and the segment’s EBITDA margin declined 590 bps to 12.0%, a steeper movement than the consolidated 330-bps margin decline.

The segment comparison shows that chipboard growth and lower Plywood and Allied losses did not fully offset the laminate business’s lower profitability. Laminates and Allied gross profit declined 6.4% to Rs 347.8 crore in Q2FY27 despite unchanged revenue, while its gross margin fell 360 bps from 56.5%.

What do Greenlam’s laminate volumes and pricing indicate?

Greenlam’s laminate sales volume declined 12.0% year on year to 5.09 million sheets in Q2FY27, while average realisation increased 12.4% to Rs 1,241 per sheet. The increase in realisation helped keep Laminates and Allied revenue unchanged at Rs 658.0 crore despite lower sales volume.

Production fell 18.3% to 4.83 million sheets from 5.91 million sheets in Q2FY26. Annualised capacity utilisation was 79%, compared with 96% a year earlier, with annual installed capacity unchanged at 24.52 million sheets.

Compared with Q1FY27, laminate sales volume increased 10.2% from 4.62 million sheets and average realisation was nearly unchanged from Rs 1,240 per sheet. Production declined 1.3% from 4.90 million sheets, while annualised capacity utilisation eased to 79% from 80%.

For H1FY27, sales volume was 9.72 million sheets, down 10.6% from 10.87 million sheets in H1FY26. Average realisation rose 14.4% to Rs 1,240 per sheet, but capacity utilisation declined to 79% from 90%, alongside a 15.1% reduction in segment EBITDA before forex to Rs 162.2 crore.

What changed in Greenlam’s debt and working-capital position?

Greenlam reported net debt of Rs 921.8 crore as of September 30, 2026, while working-capital days stood at 53. Balance-sheet borrowings were Rs 1,001.1 crore in September 2026, down from Rs 1,055.4 crore in March 2026, and shareholders’ funds increased to Rs 1,215.8 crore from Rs 1,179.1 crore.

Long-term borrowings declined to Rs 787.0 crore from Rs 883.9 crore over the period, while short-term borrowings increased to Rs 214.1 crore from Rs 171.5 crore. The presentation states that total debt is before an Indian Accounting Standards adjustment of Rs 8.75 crore for H1FY27.

Current assets increased to Rs 1,256.9 crore in September 2026 from Rs 1,234.5 crore in March 2026. Inventories rose by Rs 37.0 crore to Rs 800.9 crore and trade receivables rose by Rs 22.9 crore to Rs 241.6 crore, while cash and bank balances declined by Rs 17.1 crore to Rs 46.8 crore.

Conclusion

Greenlam’s Q2FY27 results show that 8.3% revenue growth did not translate into higher quarterly earnings, as gross margin fell 310 bps and EBITDA before forex declined 19.0%. Chipboard revenue of Rs 107.0 crore and the Rs 1.4 crore reduction in Plywood and Allied losses supported the mix, but flat laminate revenue and a 12.0% volume decline weighed on profitability.

The next results will show whether the unresolved freight, shipping and crude-linked input disruption cited by management continues to affect costs. Greenlam’s laminate capacity utilisation of 79% in Q2FY27, compared with 96% a year earlier, and chipboard’s operating profit of Rs 8.7 crore are disclosed operating measures to watch in subsequent quarters.