A prominent laminate company has come into the spotlight after setting an ambitious target of up to 20 percent revenue growth for FY26. Despite facing headwinds in the previous fiscal year, the company is optimistic about a strong rebound, driven by expanded production capacity and strategic initiatives across its business segments.
During Tuesday’s trading session, the shares of Greenlam Industries Ltd reached an intraday high of Rs.258.40 per share, rising slightly from the previous close of Rs.254.90 per share. The shares have retreated from the peak and are trading at Rs.256.20 apiece.
What Happened
Greenlam Industries is eyeing a robust revenue growth of 18-20 percent in FY26, despite having faced a tough FY25 marked by pressure on margins and a notable drop in profitability. The company is optimistic that the operational scale-up of its newly commissioned manufacturing units and strategic groundwork laid in the previous year will help strengthen performance across its verticals.
According to Saurabh Mittal, Managing Director, and CEO, all production units, including the new chipboard plant in Andhra Pradesh, are now fully operational, shifting the focus squarely on increasing sales. He noted that laminates, which remain the core of Greenlam’s portfolio, are expected to drive margin recovery. Losses in the plywood segment are likely to narrow further as sales volumes surged in FY25, while the particle board unit is seeing early momentum in demand, even though EBITDA breakeven might not be achieved this year. Mittal also mentioned that net debt, currently around Rs.950–1,000 crores, is anticipated to reduce marginally.
Maintaining financial discipline, the company aims to hold working capital days steady at around 55, with efficient collections tied closely to sales performance. Having already invested Rs.2,500 crores in capital expenditure in FY25, Greenlam does not foresee any major new spending in FY26 aside from finalizing ongoing projects in Andhra Pradesh and Tamil Nadu.
Financial Performance
According to its latest financial results, Greenlam Industries Ltd posted a consolidated revenue of Rs.681.77 crores in Q4 FY25, reflecting a 9.24 percent increase from Rs.624.09 crores in Q4 FY24 and a 13.24 percent rise compared to Rs.602.04 crores in Q3 FY25.
However, the company’s net profit dropped sharply to Rs.1.47 crores in Q4 FY25, plunging 96.40 percent year-on-year from Rs.40.79 crores and down 88.28 percent from Rs.12.54 crores in the previous quarter.
The company has a Return on Capital Employed (ROCE) of 9.36 percent and a Return on Equity (ROE) of 10.89 percent. Its Price-to-Earnings (P/E) ratio stands at 61.96, higher than the industry average of 25.24. Furthermore, the company maintains a current ratio of 2.03, a debt-to-equity ratio of 1.11, and an Earnings Per Share (EPS) of Rs.4.26.
As per the shareholding pattern in March 2024, promoters of Greenlam Industries Ltd held a 50.98 percent stake in the company. Foreign Institutional Investors (FIIs) accounted for 1.77 percent. Meanwhile, Domestic Institutional Investors (DIIs) owned 15.73 percent, and retail investors held the remaining 31.53 percent. Ace investor Ashish Dhawan owns 3.77 percent in the company.
Written by – Siddesh S Raskar
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