Greenlam Q4 FY26: Revenue crosses INR 3,000 crore as new capacities ramp up

Greenlam Industries Limited ended FY26 with a milestone it has been building toward through a multi-year expansion cycle. Consolidated revenue for Q4 FY26 rose to INR 857.7 crore, up 25.8 percent year on year, taking full-year revenue to INR 3,046.1 crore, a first-time cross of the INR 3,000 crore mark. Operating profit moved faster than sales in the quarter. EBITDA before forex fluctuations and exceptional items increased 57.1 percent year on year to INR 107.4 crore, and EBITDA margin expanded to 12.5 percent from 10.0 percent.

Profitability at the bottom line also turned sharply in the company’s favor in Q4. Net profit was INR 40.5 crore versus INR 1.5 crore in Q4 FY25 and a small loss of INR 0.6 crore in Q3 FY26. For the full year, PAT stood at INR 56.0 crore compared with INR 68.3 crore in FY25, showing that the year as a whole still carried the weight of a larger cost base, higher depreciation, and higher interest as new capacities scaled. What stands out in the Q4 print is the operational momentum and the signs of improving cost absorption.

A key reason Q4 looked better than earlier quarters is that growth was broad-based across segments and geographies. Management described strong momentum across business segments, both domestic and international. At the same time, the quarter also revealed the new operating reality for a company running a larger and more diversified asset base: raw material volatility can compress margins quickly if pricing does not catch up. Gross margin expanded 80 bps year on year to 51.5 percent but fell sharply sequentially due to higher raw material prices linked to ongoing geopolitical issues. The company stated it passed on the full hike in raw material prices to markets from April 2026 onwards, which sets up a clearer test of pricing power in FY27.

Q4 FY26 in numbers: growth with visible margin swings

Greenlam’s consolidated Q4 revenue growth of 25.8 percent year on year was supported by a combination of volumes and improved realizations in laminates, rising plywood volumes as the newer plant scaled, and a meaningful quarter for chipboard as the business completed its first full year of operations.

Gross profit rose 28.0 percent year on year to INR 442.1 crore. Operating leverage showed up in EBITDA growth, but the path was uneven. Sequentially, gross margin declined by 410 bps, indicating that the quarter absorbed a cost shock before pricing actions took effect. Even with that, EBITDA margin improved year on year due to higher revenue and cost controls.

The balance sheet shows the company still working through a capex-led leverage phase. As of March 2026, net debt stood at INR 940.1 crore, down from INR 989.1 crore a year earlier. Working capital improved on a days basis. Net working capital days were 51 in Q4 FY26 versus 55 in Q4 FY25. Inventory days improved year on year to 82 days from 89 days, while receivable days were slightly higher at 23 days versus 21 days.

Segment view: laminates lead, plywood and chipboard still in investment mode

The segment picture helps explain why Q4 delivered a strong PAT rebound while full-year returns remain subdued.

Laminates and allied products remain the earnings engine. In Q4 FY26, the segment delivered net revenue of INR 658.5 crore, up 14.4 percent year on year. Gross margin improved materially to 54.2 percent, up 320 bps, supported by better realizations and scale benefits. EBITDA without forex impact rose 43.6 percent to INR 113.5 crore, and EBITDA margin expanded to 17.2 percent from 13.7 percent.

Operationally, laminates showed steady throughput and healthier pricing. Quarterly sales were 5.15 million sheets, up 4.5 percent year on year, while average realization increased to INR 1,243 per sheet from INR 1,113, an 11.7 percent increase. FY26 utilization also improved, with annualized capacity utilization at 86 percent versus 82 percent in FY25.

Plywood and allied products, which includes plywood, decorative veneers, engineered floors and engineered doors, continued to scale volumes but remained loss-making at EBITDA level. Q4 segment revenue was INR 119.3 crore, up 17.9 percent year on year, and QoQ growth was strong at 32.3 percent. Production grew sharply, with Q4 plywood production up 37.5 percent year on year and sales up 43.5 percent. Capacity utilization, however, was still in the low-40 percent range on an annualized basis in Q4. The segment reported EBITDA without forex impact of negative INR 3.8 crore in Q4 and negative INR 29.5 crore for FY26.

Panel and allied, driven by chipboard, is still early in its ramp-up cycle but is beginning to show commercial traction. Q4 revenue was INR 79.8 crore versus INR 5.1 crore in Q4 FY25, with 47.3 percent QoQ growth. The company highlighted that the chipboard facility continued to gain traction and that FY26 represented the full year of operations for chipboard. Volume indicators support that narrative. Q4 chipboard sales were 38,799 CBM versus 28,954 CBM in Q3, and annual sales reached 1,09,886 CBM. Utilization on an annualized basis was 49 percent in Q4.

Margins in chipboard remain a work in progress. Gross margin in Q4 was 39.4 percent, but EBITDA without forex impact was still slightly negative at INR 2.2 crore. The key near-term challenge is that average realization in chipboard was lower year on year, at INR 20,562 per CBM in Q4 versus INR 21,151, and full-year realization was also lower.

Expansion cycle: execution delivered, returns now need to catch up

Greenlam’s FY26 performance sits at an important transition point in its long growth journey. Over the years, the company has built a multi-product portfolio across laminates, compact panels, plywood, veneers, floors, doors, and chipboard, and expanded manufacturing footprint across Behror, Nalagarh, Prantij, Naidupeta, and Tindivanam. The recent phase was defined by commissioning and scaling of greenfield and brownfield projects in laminates, plywood, and chipboard.

Management’s messaging in the presentation is consistent: the company completed its planned expansion projects and delivered on project commitments, emphasizing structured execution, capital efficiency, and a base for sustainable revenue and profitability growth. The capacity table underscores how scaled the platform is now. High pressure laminates capacity stands at 24.52 million sheets across four locations. Plywood capacity is 18.9 million square meters at Tindivanam. Chipboard capacity is 292,380 CBM at Naidupeta, with commercial production having started in January 2025.

But the financial statements show what typically happens after a large capacity build-out. Depreciation for FY26 increased to INR 141.5 crore from INR 113.7 crore in FY25. Interest expense rose to INR 96.2 crore from INR 65.5 crore. Return ratios are recovering but remain modest. FY26 ROCE was 8.6 percent versus 7.8 percent in FY25, while ROE declined to 4.7 percent from 6.1 percent. The path to higher returns will depend on three visible levers that are already emerging in the data.

First, utilization and scale benefits in the newer assets need to improve. Plywood utilization was 36 percent for FY26, and chipboard utilization was 39 percent for FY26. A move upward in these utilization levels typically improves per-unit economics, overhead absorption, and EBITDA.

Second, pricing and raw material management will likely define margin stability. The company explicitly called out raw material price increases in Q4 and noted that it passed on the full hike from April 2026 onwards. If that pricing action holds, FY27 margins may look more consistent, provided raw material volatility does not intensify further.

Third, working capital discipline matters because growth can easily tie up cash in inventory and receivables. The Q4 improvement in net working capital days to 51 is encouraging, especially with higher scale. Inventory days came down year on year, and payables days stayed broadly stable. Continued working capital control would support deleveraging over time.

Investor takeaways: momentum is visible, but FY27 is about conversion

Greenlam’s Q4 FY26 result reads like the early stages of conversion from project execution to earnings normalization. Revenue growth is strong and broad-based, with FY26 now firmly above INR 3,000 crore. Laminates remain the core profit driver, and the segment is showing both volume stability and realization-led growth.

The near-term debate for investors is not whether the company can sell. It is whether newer categories can turn scale into sustainable profitability while the company navigates input cost volatility. Plywood and chipboard are already growing quickly in volumes, but both segments are still negative at EBITDA for FY26. The Q4 step-up in profitability at the consolidated level suggests operating leverage is starting to show up as scale improves.

The company ends the year with improved working capital days and slightly lower net debt versus last year, but leverage remains meaningful, and returns are still below past peaks. If FY27 sees sustained utilization gains in plywood and chipboard and if the April 2026 price pass-through holds, the operating story shifts from capacity creation to return expansion. That is the new chapter Greenlam is signaling, and the next few quarters will show how quickly the platform can translate into higher ROCE and steadier earnings quality.