Greenlam Industries: Demand Steady, Cost Inflation Passed On. Maintain Reduce
By Prime Research | Last Modified: May 27, 2026 05:20 PM IST
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Greenlam Industries guided for 18-20% revenue growth in FY27, driven by laminates, plywood and particle board businesses. The company expects healthy demand conditions despite inflationary pressure on chemicals and resin costs.
Greenlam continues to expand its plywood and particle board businesses while maintaining leadership in laminates. Recent price hikes have helped offset raw material inflation.
- Q4FY26 highlights: Revenue grew 26% YoY to INR 8.58bn. Laminate revenue increased 14% YoY while international business delivered healthy growth.
- FY27 guidance: Management expects revenue growth of 18-20%, with laminate volume growth of 7-8%. Consolidated EBITDA margin is expected to remain in the 13-14% range.
- Pricing and cost: The company implemented two rounds of price hikes totaling 12-15% in laminates to offset higher resin and chemical costs.
- Plywood segment: Greenlam targets 55-60% capacity utilization in FY27 and around 70% utilization in FY28. EBITDA breakeven is expected by FY27.
- Particle board business: Revenue stood at INR 798mn in Q4FY26 and INR 2.13bn in FY26. Capacity utilization is expected to reach 65-70% in FY27 and 80% by FY28.
- Capex and debt: FY27 capex is budgeted at INR 1.25bn. Net debt including lease liabilities is expected to improve to 1.9x EBITDA by FY28.
- Outlook: While laminate business remains strong, profitability ramp-up in plywood and particle board segments remains a key monitorable.
Quarterly / Annual Financial Summary
| Particulars | 4QFY26 | 4QFY25 | YoY (%) | 3QFY26 | QoQ (%) | FY26 | FY27E | FY28E |
|---|---|---|---|---|---|---|---|---|
| Sales (mn sheet) | 5.15 | 4.93 | 4.5 | 4.75 | 8.4 | 20.7 | 21.9 | 23.4 |
| NSR (per sheet) | 1,279 | 1,167 | 9.5 | 1,183 | 8.1 | 1,178 | 1,236 | 1,236 |
| Laminates EBITDA Margin (%) | 18.1 | 13.7 | – | 15.4 | – | 16.8 | 15.3 | 15.4 |
| Net Sales | 8,577 | 6,818 | 25.8 | 7,064 | 21.4 | 30,461 | 35,054 | 38,958 |
| EBITDA | 1,082 | 640 | 69.1 | 682 | 58.6 | 3,249 | 3,999 | 4,767 |
| EBITDA Margin (%) | 12.6 | 9.4 | – | 9.7 | – | 10.7 | 11.4 | 12.2 |
| APAT | 395 | 21 | 1741.9 | 60 | 708.5 | 624 | 1,318 | 1,906 |
| EPS (INR) | 3.3 | 0.1 | 1741.9 | 0.4 | 708.5 | 5.4 | 5.2 | 7.5 |
| EV/EBITDA (x) | 17.3 | 14.3 | ||||||
| P/E (x) | 45.3 | 31.3 | ||||||
| RoE (%) | 10.7 | 13.9 | ||||||
Source: Company, HSIE Research
REDUCE
| CMP (as on 26 May 2026) | INR 234 |
| Target Price | INR 235 |
| NIFTY | 23,914 |
Key Changes
| OLD | NEW | |
|---|---|---|
| Rating | REDUCE | REDUCE |
| Price Target | INR 235 | INR 235 |
| EPS Revision FY27E | 0.4% | – |
Key Stock Data
| Bloomberg code | GRLM IN |
| No. of Shares (mn) | 255 |
| MCap (INR bn) | 60 |
| 6m avg traded value (INR mn) | 38 |
| 52 Week high / low | INR 279 / 197 |
Stock Performance (%)
| 3M | 6M | 12M | |
|---|---|---|---|
| Absolute (%) | (2.8) | (4.6) | (13.0) |
| Relative (%) | 4.8 | 6.7 | (5.5) |
Shareholding Pattern (%)
| Dec-25 | Mar-26 | |
|---|---|---|
| Promoters | 50.98 | 50.98 |
| FIs & Local MFs | 14.48 | 13.96 |
| FPIs | 1.74 | 1.77 |
| Public & Others | 32.80 | 33.29 |
| Pledged Shares | – | – |
Source:
- BSE
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