Shares of Greenlam Industries surged by 19% on Monday, hitting a new 52-week high of Rs 280.60 on the BSE. The significant rally was triggered by the company's strong fourth-quarter (Q4) earnings report.
Greenlam's Q4 Earnings Drive Market Optimism
The company reported a substantial increase in its Q4 net profit, which zoomed by an impressive 2,616% to Rs 40.5 crore, compared to Rs 1.5 crore in the same period last year. Net revenues also saw robust growth, rising 25.8% year-on-year (YoY) to Rs 857.7 crore. The overall laminate business contributed significantly, growing 14.4% in value terms YoY.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) before forex impact and exceptional items stood at Rs 107.4 crore, marking a 57.1% YoY increase. Gross margins for Q4 improved by 80 basis points, reaching 51.5% from 50.7% in Q4 FY25. In absolute terms, gross profit rose 28.0% YoY to Rs 442.1 crore.
Fiscal Year 2026 Performance Overview
For the full fiscal year 2026 (FY26), Greenlam Industries reported consolidated net revenues from operations of Rs 3046.1 crore, an 18.6% increase from Rs 2569.3 crore in FY25. The laminate business grew 9.3% in value terms YoY. Gross margins for the year improved by 130 basis points to 53.6% compared to 52.3% in FY25. Operating profit before forex fluctuations and exceptional items increased 21% to Rs 334.2 crore in FY26 from Rs 276.1 crore in FY25.
Despite strong revenue and operating profit growth, the net profit for FY26 was Rs 56 crore, a decrease from Rs 68.4 crore in FY25. This was primarily attributed to higher operating costs, forex fluctuations, exceptional items, and increased interest and depreciation expenses related to the company's chipboard business.
Market Response and Company Profile
Following the earnings announcement, Greenlam Industries' market capitalization rose to Rs 6470 crore. A total of 1.57 lakh shares changed hands on the BSE, amounting to a turnover of Rs 4.15 crore. Over the past five years, the stock has delivered a substantial return of 123.24%.
Greenlam Industries is recognized as one of the top three laminate manufacturers globally and is a leading integrated provider of substrate and surface solutions. The company serves customers in over 120 countries, known for its consistent innovation and product quality.