Earning Call Transcript

Greenlam/2026-27 August 17, 2026 The Manager The Manager BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Fax No. 022-2272-3121/1278/1557/3354 Fax No. 022-2659-8237/8238/8347/8348 Email: corp.relations@bseindia.com Email: cmlist@nse.co.in BSE Scrip Code: 538979 NSE Symbol: GREENLAM Sub: Transcript of Earnings Call Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Transcript of Earnings Call (Group Conference Call) held on August 10, 2026 to discuss operational and financial performance of the Company for Q1 FY 2026-27 with Investors & Analysts of the Company. Kindly take the above information on records. Thanking you, Yours faithfully, For Greenlam Industries Limited Prakash Kumar Biswal Company Secretary & Senior Vice President – Legal Encl: A/a “Greenlam Industries Limited Q1 FY27 Earnings Conference Call” August 10, 2026 “E&OE - This transcript is edited for factual errors and readability. In case of discrepancy, the audio recordings uploaded on the stock exchange on 10/08/2026 will prevail.” MANAGEMENT: MR. ASHOK SHARMA – CHIEF FINANCIAL OFFICER – GREENLAM INDUSTRIES LIMITED MR. SAMARTH AGARWAL – VICE PRESIDENT FINANCE – GREENLAM INDUSTRIES LIMITED Page 1 of 16 Greenlam Industries Limited August 10, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Greenlam Industries Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashok Sharma, Chief Financial Officer of Greenlam Industries Limited. Thank you, and over to you, sir. Ashok Sharma: Thank you. Good morning to all, and I welcome to the Quarter 1 FY27 Earnings Call of Greenlam Industries. I'm joined by Samarth Agarwal, our VP Finance; and SGA team, our Investor Relations Advisor. I'm sure you had the opportunity to look at the results and the investor presentation, which are available on the stock exchanges and on the company website. I'll give you a business update of Q1 before I hand over the call to Samarth. We are pleased to report that we have started the year with a revenue growth of 18% on year- on-year basis and taking our consolidated revenue for the quarter to nearly INR800 crores, with an EBITDA of INR81 crores before forex, while maintaining the gross margin at 53% level. The performance was broad-based with most of the business segment reporting revenue growth during the quarter and with continuing growth momentum both for the domestic and the international market. A few of the major developments during the quarters were worth highlighting. Our chipboard business turned EBITDA positive for the first time with an operating profit of INR3.4 crores before forex and losses in Plywood and Allied segment has continued to narrow. Moving on to West Asia conflicts. The ongoing West Asia conflicts continue to keep input prices, currency rates and freight costs volatile during this quarter. This has also led to delay in container and vessel availability and freight cost -- a significant hike in the freight cost. As a direct consequence relates to this, nearly INR27 crores of export shipment got postponed out of this quarter. This is purely a timing matter and the revenue is not lost. It is simply moving into the current quarter. Also, the shipment in sea are taking more time to reach destination, leading to overall long lead time. To maintain the fiscal discipline and mitigate the impact of price rise, we have passed on the increase in the raw material prices to the customer. As communicated earlier, we have done the price hike twice at the beginning of April and May. And when the prices have started softening, we have reduced some prices at the beginning of June and again at the beginning of quarter 2. Overall, on a net basis, we have passed on 7% to 8% of the price hikes. This is mainly the price hike in the chemical, which constitutes nearly one-third of our raw material prices, while the prices of other raw material remain constant. Page 2 of 16 Greenlam Industries Limited August 10, 2026 On the logistics side, I would like to highlight that the Middle East market is around 6%, 7% of our total business. So we don't foresee any material impact on our top line, rather it should grow. The domestic demand remained stable during the quarter. Retail and distribution-led business held up well, while there were some challenges in the project business due to overall cost of increase in the entire building raw material -- building material industry. Moving on to the segment-wise details. In the laminate, our revenue from operations for the quarter stood at INR596 crores, a growth of 7% on a year-on-year basis. Sales volume for the quarter was at 4.62 million sheets with a capacity utilization of 80%. Softness in the volume and the revenue is due to the export shipment, which got postponed out of the quarter. Adjusted for this, the underlying demand trend in this business remains healthy. International business performed particularly well during the quarter, reinforcing the benefit of strong global footprint, which we have built over the years. On the capacity expansion side, we are adding 2 new press line of the laminate, which are on track and which are expected to start commercial production by Q4 of this year. With the addition of this new capacity, we will be able to increase the capacity of specific category of laminate, which are reaching near to optimum capacity utilization. I'll move on to the other Plywood and Allied segment. Revenue from operations during the quarter grew by 20% on year-on-year to INR106 crores and EBITDA loss for the forex fluctuation narrowed to INR5 crores from INR9 crores in the previous quarter -- in the quarter 1 of last year. The plywood business, on the other hand, continued to ramp up with sales volume growing 19% on a year-on-year basis and capacity utilization of 39%. Our distribution network is expanding, and we have taken some price hike at the start of April in phased manner. We continue to -- we expect that plywood segment will break even in this year. Moving on to Panel and Allied segment. This has been the standout performer of the quarter. Revenue stood at INR95 crores, a growth of nearly 200% on a year-on-year basis. Capacity utilization is improving every quarter and moved to 61% from 30% in the Q1 last year. Average realization has also increased driven by price increase taken and the product mix. Happy to share that this business turned positive during this quarter with a profit of INR3.4 crores before forex fluctuation as against loss of INR10 crores in Q1 last year. Our newly introduced HMR category, which was introduced in quarter 4 of last year, continue to gain good traction, and we will introduce more premium product in this category going forward. We'll continue to scale this business and improve the share of melamine faced chipboard in the overall sale of chipboard. We expect this business to maintain a capacity utilization of around 70%. Page 3 of 16 Greenlam Industries Limited August 10, 2026 As far as the outlook for the FY27 will largely be the year in which we will be sweating our existing assets apart from the laminate press line, which is already announced, we do not have any plan for any large capacity addition and our capex for the year is budgeted around INR130 crores, INR135 crores, which includes INR70 crores towards the laminate expansion. That's all from my side. I'll be happy to take [Showing first 8,000 characters — download PDF for full document]