Greenlam Industries Ltd Q2FY26: ₹808 Cr Revenue, ₹32 Cr PAT, ₹6,767 Cr Market Cap — High-Gloss Profits, Low-Margin Reality Check

1. At a Glance

Picture this: ₹6,767 crore market cap, ₹808 crore quarterly sales, ₹32 crore profit, and a P/E ratio so high it could qualify for the Indian Premier League auction at213x. Greenlam Industries Ltd — the glossy name behind your laminates, veneers, and designer plywood — just delivered itsQ2FY26results, and let’s just say the shine is more from polish than profits.

Despite18.7% YoY sales growth, PAT actually slipped6.6%because interest and depreciation continue to eat more than a termite at a plywood warehouse. The company’s newNaidupeta chipboard facilityis finally live (after guzzling ₹735 crore in capex), and a newbrownfield expansion of 2 million sheetsis already announced.

Meanwhile, the return ratios are acting like that distant cousin who never turns up when you need help —ROE at 6.07%,ROCE at 7.41%, andinterest coverage at 1.74x. But hey, at least thedebt-to-equity ratio of 1.06shows they haven’t gone full “real-estate-developer” yet.

So is Greenlam India’s next material science marvel or just another pretty veneer over heavy debt and slim margins? Let’s peel off the layers.

2. Introduction

Once upon a laminate sheet, India’s furniture market decided looks mattered more than wood. EnterGreenlam Industries, the makeover artist for tables, walls, and wardrobes. With a product portfolio coveringlaminates, veneers, plywood, engineered flooring, and now chipboard, the company practically manufactures everything between a carpenter’s dream and a home loan EMI.

Over three decades, Greenlam has grown from a single-site operation tofive manufacturing facilities— Behror, Nalagarh, Prantij, Tindivanam, and Naidupeta — covering almost every decorative surface known to mankind. It exports to120+ countries, flaunting Indian craftsmanship from Rajasthan to Romania.

But beneath the decor lies a capital-intensive beast. Every new product comes with big machines, long gestation, and rising finance costs. FY25 saw them spend₹735 croreon a chipboard project, which should ideally add ₹750 crore to annual revenue once fully ramped.

Q2FY26 paints an interesting picture — solid top-line growth, cautious optimism on new capacities, and the eternal struggle between expansion and earnings.

So while your interior designer might call Greenlam “premium,” your analyst friend would probably say, “Bro, margins are thinner than laminate sheets.”

3. Business Model – WTF Do They Even Do?

Think of Greenlam as thefashion designer for surfaces. The company doesn’t sell furniture; it sellsthe face of furniture. Its empire rests on three core segments:

1. Laminates & Allied Products (85.3% of revenue)— the shiny, scratch-resistant layers that make your cheap plywood table look like an Italian import.
2. Veneer & Allied Products (7.6%)— the more natural, wooden look segment for those who like “premium” even in a recession.
3. Plywood & Allied Products (4.1%)— the humble but essential core material of all furniture.

And now, the shiny new entrant:Particle Board (Chipboard)— Greenlam’s ₹735 crore bet to capture the mass-market furniture wave.

Its brands likeGreenlam, Decowood, Mikasa, and Stratuscover everything from wall cladding to restroom panels. The company even makesengineered doors and wooden flooring, so basically, if your house has surfaces, Greenlam wants a piece of it.

The business runs on scale, design, and dealer network —30,000+ distributorsacross India and 17 distribution centers. Export is another big game: Greenlam supplies to120+ countries, proving Indian laminates can look just as good as European ones, but maybe with better masala-stain resistance.

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