Revenue and Profit Growth Trends
Over the seven-year period ending March 2025, Greenlam Industr's net sales have shown a robust increase from ₹1,280.71 crores in March 2019 to ₹2,569.33 crores in March 2025. This represents a compound growth trend, with particularly strong jumps between 2021 and 2025, reflecting the company's expanding market presence and demand for its plywood and laminate products.
Operating profit (PBDIT) excluding other income rose from ₹158.53 crores in March 2019 to ₹272.99 crores in March 2025, although the operating profit margin has seen some compression, declining from 12.38% in 2019 to 10.62% in 2025. This suggests that while the company is growing sales, it is facing margin pressures, likely due to increased raw material and employee costs.
Profit after tax (PAT) has fluctuated, peaking at ₹138.01 crores in March 2024 before declining to ₹68.35 crores in March 2025. The PAT margin similarly contracted from around 6% in earlier years to 2.66% in the latest fiscal year, indicating challenges in cost control and higher interest expenses.
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Cost Structure and Expenditure Analysis
Raw material costs have increased significantly from ₹693.12 crores in 2019 to ₹1,210.40 crores in 2025, reflecting both higher input prices and increased production volumes. Employee costs have more than doubled over the same period, rising from ₹192.45 crores to ₹511.10 crores, which may indicate expansion in workforce or wage inflation.
Other expenses have also escalated, reaching ₹558.64 crores in 2025 from ₹241.95 crores in 2019. Despite these rising costs, the company has managed to keep total expenditure excluding depreciation in line with revenue growth, though the margin pressures remain evident.
Balance Sheet and Financial Position
Greenlam Industr's total assets have more than doubled from ₹1,103.77 crores in 2020 to ₹2,898.79 crores in 2025, driven by substantial investments in gross block assets, which increased from ₹766.69 crores to ₹2,430.95 crores. Net block assets have similarly grown, indicating ongoing capital expenditure and capacity expansion.
Shareholders' funds have increased steadily, reaching ₹1,126.89 crores in 2025 from ₹573.47 crores in 2021, supported by rising reserves. However, the company’s long-term borrowings have surged sharply to ₹833.08 crores in 2025 from ₹83.79 crores in 2021, reflecting increased leverage to finance growth initiatives.
Current liabilities have also risen, with trade payables and short-term borrowings increasing in line with business scale. The company’s book value per share adjusted has fluctuated, standing at ₹44.17 in 2025, down from a peak of ₹75.45 in 2023, influenced by equity changes and profit variations.
Cash Flow and Liquidity
Operating cash flow has generally improved, with cash flow from operating activities rising to ₹204 crores in 2025 from ₹96 crores in 2020, indicating stronger cash generation from core operations. However, cash flow from investing activities remains negative, reflecting ongoing capital expenditure commitments.
Financing activities have seen mixed trends, with a net outflow of ₹28 crores in 2025 following inflows in previous years, consistent with debt repayments or equity adjustments. The company’s closing cash and cash equivalents have increased to ₹42 crores in 2025, providing a modest liquidity buffer.
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Summary of Historical Performance
In summary, Greenlam Industr has exhibited strong revenue growth and asset expansion over recent years, underpinned by significant capital investments and increased borrowings. While operating profits have grown, margin pressures and rising interest costs have impacted net profitability. The company’s cash flow from operations has strengthened, supporting its investment activities and debt servicing.
Investors should note the company's increased leverage and margin compression as key factors influencing its financial health. The historical data suggests a business in expansion mode, balancing growth opportunities with the challenges of cost management and financing.
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