Greenlam Industries Q4FY26: Revenue crosses 3000 crore, but profitability stays uneven

Greenlam Industries reported a sharp top line finish to FY26, with Q4 consolidated revenue at 857.7 crore, up 25.8% year on year. For the full year, revenue rose 18.6% to 3046.1 crore, a milestone the company highlighted as its first year above the 3000 crore mark.

Operating profitability improved in Q4, helped by higher scale and cost controls. EBITDA before forex fluctuations and exceptional items came in at 107.4 crore, up 57.1% year on year, and EBITDA margin expanded to 12.5% from 10.0% a year ago. Reported PAT for the quarter improved to 40.5 crore compared with 1.5 crore in Q4FY25.

But FY26 remained a more complex story than the Q4 headline numbers suggest. Full year PAT declined to 56.0 crore from 68.3 crore in FY25, and return ratios stayed low with ROCE at 8.6% and ROE at 4.7%. Interest costs also moved up sharply to 96.2 crore.

A segment mix driven by laminates, with newer businesses still in investment mode

Greenlam operates three disclosed consolidated segments: Laminates and Allied, Plywood and Allied, and Panel and Allied. Laminates continues to be the engine of the company, both in scale and profitability.

For FY26, Laminates and Allied net revenue was 2433.3 crore, up 9.3% year on year, with EBITDA margin (with forex impact) improving to 16.8% from 13.9% in FY25. The company also disclosed quantitative operating metrics for this segment, including FY26 sales of 20.65 million sheets and average realization of 1144 per sheet.

Plywood and Allied grew faster on revenue but remained loss making at the EBITDA level. FY26 net revenue rose 18.4% to 400.0 crore, while EBITDA without forex impact was -29.5 crore. Utilization for plywood remained modest at 36% for FY26 on installed capacity of 18.90 million square meters.

The Panel and Allied business, which includes chipboard and pre lam chipboard, is the newest and shows early revenue traction but still negative EBITDA. FY26 net revenue was 212.8 crore, and EBITDA without forex impact was -23.1 crore. The company stated the chipboard facility continued to gain traction and FY26 represented the full year of operations for this business.

Margins improved year on year, but raw material volatility returned in Q4

Greenlam reported Q4 gross margin of 51.5%, up 80 basis points year on year. However, it also highlighted a sharp sequential decline in gross margins, attributing it to increased prices of major raw materials in the quarter due to ongoing geopolitical issues.

The company stated that supply chain management and financial discipline helped partially mitigate the impact, and that the entire hike in raw material prices was passed on to the market from April 2026 onwards.

At the operating level, EBITDA before forex and exceptional items rose meaningfully in Q4 to 107.4 crore. Reported EBITDA with forex impact stood at 108.2 crore in Q4, reflecting a small forex gain in the quarter. For FY26, forex impact was a loss at the EBITDA line of 9.3 crore.

The key overhang for FY26 profitability was not gross margin alone, but the combined effect of higher depreciation and significantly higher interest costs, along with loss making contributions from the plywood and chipboard segments.

Balance sheet, working capital, and debt remain important watch points

As of March 2026, Greenlam reported total borrowings of 1055.4 crore and cash and liquid investments of 115.3 crore, resulting in net debt of 940.1 crore. Net debt improved from 989.1 crore in FY25, but leverage remained meaningful.

Working capital improved in Q4. Net working capital days were 51 days in Q4FY26 versus 55 days in Q4FY25. Inventory days were 82 in Q4FY26, down from 89 in Q4FY25, while trade payables stayed broadly stable in day terms.

The company’s balance sheet showed total assets of 3004.2 crore as of March 2026, compared with 2908.8 crore a year ago. Fixed assets stood at 1715.4 crore.

Execution focus: commissioning cycle largely behind, ramp up is the next chapter

A central theme in the presentation was the completion of a commissioning and expansion cycle across laminates, plywood, and chipboard. The company stated it completed greenfield and brownfield expansion projects and that structured execution has laid the groundwork for sustainable revenue and profitability growth.

Operational milestones were explicitly listed. The plywood unit at Tindivanam commenced commercial production effective June 09, 2023. The laminate unit at Naidupeta commenced commercial production effective September 29, 2023. The chipboard unit at Naidupeta commenced commercial production effective January 23, 2025, and the company stated FY26 represented a full year of operations for chipboard.

The near term investment debate for investors is likely to center on whether the newer segments can move from scale up to margin improvement. In FY26, laminates delivered both scale and margin expansion, while plywood and chipboard added growth but diluted consolidated profitability.

Takeaways for investors

Greenlam’s FY26 numbers show a company that has achieved scale, with revenue growth strong enough to cross 3000 crore for the first time. Q4 delivered a clear step up in EBITDA and PAT versus the previous year. At the same time, consolidated returns remain modest and profitability is uneven across segments.

For the next phase, the most important variables disclosed in this presentation are the ramp up trajectory of plywood and chipboard capacity utilization, the company’s ability to maintain laminate realizations and margins amid raw material volatility, and the pace of debt and interest cost normalization.