Greenlam Industries Ltd. share price target

Q3FY26 Performance: The revenue was up 17.3% YoY at 706.4 crore. The Laminates & Allied segment posted revenue of 562.1 crore, up 8.2% YoY, with muted volume (degrowth of -0.4% YoY) at 4.8 million sheets and an 8.9% increase in realization. The Plywood segment revenue at 90.1 crore was up 9.5% YoY and volumes up 12% YoY to 1.3 MSM. Consolidated EBITDA stood at 68.2 crore, with EBITDA margins at 9.7% (down ~90 bps YoY) as a result of higher plywood losses. The laminate margins were at 15.4% (up ~220 bps YoY) whereas plywood segment reported EBITDA loss of 13.6 crore (vs. 4.8 crore loss in base). The company...

Capex completion expands addressable market; sets the stage for strong medium-term growth trajectory: The company has completed greenfield expansion for plywood and chipboard categories along with brownfield expansion for the laminate, incurring total ~1,450 crore capex over the last three years, apart from recently announced 2 Mn MSM addition (~70 crore capex) in Laminates by FY27 end. This has expanded its addressable market (largely plywood led) to ~ 49,000 crore vs. 11,000 crore in FY22. It expects the overall revenues to reach 4,500 crore...

Beats EBITDA estimate by 26.2% on unexpected sharp improvement in the Laminate segment margin to a record high at 17.9% in Q2FY26

We attended the analyst meet of Greenlam Industries (GRLM) to gain comprehensive insights into the woodpanel segment and its demand-supply dynamics. The company has recently completed greenfield and brownfield expansions in laminates, plywood, and chipboards. The management expects...

Backed by its domestic business up 22.2% y/y, Greenlam’s Q1 revenue was up 11.4% y/y to Rs6.7bn. On lower input costs the gross margin expanded 102bps y/y to 53%.

Dismal Q1 on weak performance across segments and heavy forex loss due to a strong euro

Greenlam’s Q3 revenue stepped up 7% y/y to Rs6bn. Stable input costs led to a slight, 20bps y/y, better gross margin to 55%. Front-loading of certain costs w.r.t the particle board plant pushed EBITDA down 11% y/y to Rs635m.

Dismal Q3 on weak performance of laminates segment and slow ramp-up of plywood segment

Greenlam’s Q2 revenue climbed 12.8% y/y to Rs6.8bn. The 52% gross margin was broadly the same. EBITDA rose 7.7% y/y to Rs 814m, while PAT was significantly down 11.6% y/y to Rs 345m.

Weak Q2 on lower-than-expected laminate volume and slow ramp-up of plywood segment

We retain a Buy on Greenlam Industries Limited with an unchanged PT of Rs. 670, considering its strong earnings growth trajectory over FY2024-FY2026E.

Consolidated revenues were in line with estimates, at Rs. 605 crore (up 17.4% y-o-y) aided by 13%
y-o-y growth in laminates revenues (volume growth of 12% y-o-y) and contribution from plywood
segment.

? We retain a Buy on Greenlam Industries Limited with a revised PT of Rs. 670, assigning a higher valuation multiple considering its strong earnings growth trajectory over FY2024-FY2026E.

GRLM: Management meet: Topline to strengthen post capex drive

Greenfield laminate plant in Andhra Pradesh to aid market share gains for GRLM in both export and domestic markets

AL: Margins continue to improve, maintain BUY. GRLM: Soft quarter on tepid demand environment. ORCMNT: Topline muted as volumes decline. PRINCPIP: Lacklustre quarter on sustained market share loss

Q3 PAT missed our estimate by 31% on weak laminate volumes and sharp increase in capital charge