Target: ₹296CMP: ₹242.45Greenlam Industries’ (GRLM) Q1-FY27 consolidated revenues grew 18 per cent y-o-y to ₹800 crore, 3 per cent above EE, with Laminate revenues up 7 per cent y-o-y (-9 per cent q-o-q), led by higher realisations while Laminate volumes fell 6 per cent y-o-y.Plywood, Veneer & A.P. business posted healthy recovery, with revenues up 20 per cent y-o-y, while Chipboard facility continued to ramp-up. Management maintained blended revenue growth guidance of 18 per cent in FY27.Gross Margin came at 52.9 per cent (-17 bps y-o-y/+134 bps q-o-q, 39 bps above EE) led by price hikes across divisions. Net price hikes (adj. for price reversals) to pass on elevated chemical cost were about 7-8 per cent. Adj. for forex, EBITDAM grew 206 bps y-o-y (-234 bps q-o-q) to 10.2 per cent due to operating leverage gains.The Chipboard facility turned EBITDA positive while the plywood and AP segment EBITDA losses narrowed y-o-y in Q1-FY27. Management expects the Plywood division to reach quarterly EBITDA breakeven by end of FY26.We cut FY27E EBITDA by 6 per cent to factor in the elevated impact of input costs in Q1 while further margin recovery in newer segment should offer support. Revise to Long (from Add) with a Dec’27 TP of ₹296 at a 30x (unchanged) one-year fwd. EPS of ₹9.9 as we believe that FY27 will be an inflection year for the company.With major capex behind, debt repayment is expected to accelerate from FY28 onwards.Published on August 11, 2026