Greenlam Industries Ltd Management Discussions

Global economic grew marginally at an 3.4% in 2025 compared to 3.3% in the previous year, influenced by the US tariff shock of April 2025. Despite being partially unwound through subsequent trade deals, it left effective tariff rates well above pre-2025 levels and heightened trade policy uncertainty.

Advanced economies witnessed a marginal growth from 1.8% in 2024 to 1.9% in 2025, while emerging market and developing economies demonstrated relative resilience, expanding by 4.4% in 2025 compared to 4.3% in 2024.

Global inflation continued its multi-year downward trend in 2025, declining to an estimated 4.1% from 5.8% in 2024.

Regional growth (%)	2025	2024
World output	3.4	3.3
Advanced economies	1.9	1.8
Emerging and developing economies	4.4	4.3

(Source: IMF, un.org)

Performance of the major economies, 2025 United States: GDP growth of 2.1% in 2025 compared to 2.8% in 2024.

China: GDP growth was 5.0% in 2025 compared to 5.0% in 2024.

United Kingdom: GDP growth was 1.3% in 2025 compared to 1.1% in 2024.

Japan: GDP growth was 1.2% in 2025 compared to (0.2) % in 2024.

Germany: GDP growth was 0.2% in 2025 compared to a -0.5% in 2024.

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook report adopted a reference forecast instead of a conventional baseline, assuming the war remains contained in duration, intensity, and reach, with disruptions easing by mid-2026, in line with commodity futures as of March 10, 2026.

Under this reference view, global growth is projected at 3.1 percent in 2026 and 3.2 percent in 2027. Global inflation is expected to rise to 4.4 percent in 2026 before easing to 3.7 percent in 2027.

Indian economy

The Indian economys real GDP grew at 7.7% in FY26, compared to 7.1% in FY25. This growth was driven by strong consumption and increasing investments, reaffirming Indias position as the fastest-growing major economy.

Indias Real GDP at Constant Prices was estimated at H323.12 lakh crore in FY 2025-26, compared with H299.89 lakh crore in FY 2024-25.

Growth of the Indian economy

	FY23	FY24	FY25	FY26
Real GDP growth (%)	7.0*	7.2	7.1	7.7

E: Estimated. Note: FY24 figure restated under new base year 2022-23. (Source: MoSPI)

* The FY23 figure (7.0%) is from the old base year series (2011-12) as the new series back-data for FY23 will only be available after December 2026.

Growth of the Indian economy quarter by quarter, FY 2025-26

	Q1FY26	Q2FY26	Q3FY26	Q4FY26
Real GDP growth (%)	6.7	8.4	7.8	7.8

Note: Q2 revised upward from 8.2% and Q3 from 7.35% under the new base year 2022-23 series released February 27, 2026. Q4 remains an estimate. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained benign through much of FY26, with full-year CPI estimated at an exceptionally low 2.1%. This created room for 125 basis points of cumulative rate cuts, supporting consumption and investment.

However, macro stability was accompanied by currency volatility. The Indian rupee depreciated sharply by 9.88% during FY26 — its steepest fall since FY12 — touching H94.83 against the US dollar. This reflected global capital flows, a strong dollar environment, and geopolitical uncertainties.

Capital flows and market behaviour

Foreign portfolio investors remained risk-averse, withdrawing a record H1.8 trillion during FY26 - the largest outflow in 36 years. However, strong domestic institutional inflows of H8.50 trillion provided a crucial counterbalance, highlighting the growing maturity and depth of Indias domestic capital markets.

Indias market capitalisation declined 8 percent year on year in FY26 to $4.5 trillion from $4.83 trillion in FY25, marking the sharpest drop since FY23. The downturn was largely driven by the ongoing

West Asia conflict and concerns around potential tariff measures by USA, which weighed on global investor sentiment.

Banking sector

Indias banking sector reflected improving financial health, with the gross non-performing asset ratio declining to a robust 2.1 percent as of September 2025, indicating stronger asset quality and disciplined lending practices. This stability was mirrored in profitability metrics, as scheduled commercial banks reported a return on assets of 1.3 percent and a return on equity of 12.5 percent during the first half of 2025-26, underscoring sustained operational efficiency and a healthier balance sheet trajectory.

Indias growth story

Real Gross Value Added (GVA), which measures economic output excluding taxes and subsidies, grew 7.9% in FY26, compared with 7.3% in FY25. At current prices, nominal GVA rose 9.1% to H314.87 lakh crore from H288.54 lakh crore a year earlier.

The tertiary services sector remained a key growth driver, expanding by 9.0 percent in FY26 and increasing its share in nominal gross value added to 54.3 percent from 52.8 percent in FY25, supported by broad-based momentum across segments.

During FY26, financial, real estate, IT and professional services grew by 9.9 percent, while trade, hotels, transport, communication and broadcasting recorded a strong 10.1 percent growth, and public administration and other services expanded by 5.8 percent.

The secondary sector grew 9.1 percent, accelerating from 8.0 percent in the previous year, driven by manufacturing alongside construction growth of 7.1 percent. This combination of services-led scale and manufacturing acceleration is shaping a more balanced and resilient economic structure.

Growth catalysts

Policy-led consumption boost: The Union Budget FY27s tax relief measures—particularly income tax exemptions up to HI 2 lakh—are expected to stimulate discretionary spending and reinforce consumption-led growth.

Anticipatory Pay Commission impact: The 8th Pay

Commission, though expected to be implemented from FY28, is already shaping consumer sentiment, creating a forward consumption impulse.

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth focus: The Union Budget maintains fiscal discipline while prioritising infrastructure, MSME support, skilling, and innovation—key levers for long-term productivity.

Outlook

The year under review underscores a defining divergence: a world grappling with uncertainty, and an India navigating it with confidence.

In a global environment marked by fragmentation and caution, India stands out as a rare convergence of stability, scale and structural opportunity. The World Bank has revised its FY27 growth estimate upward to approximately 6.6%, reflecting resilient domestic momentum even as growth moderates from the previous year. India is expected to retain its position as the fastest-growing major economy.

Growth will be shaped by a combination of strong domestic demand and resilient private consumption, supported by low inflation and GST rationalisation, alongside stable export performance with improved access to key markets. This momentum is further reinforced by sustained policy support, ongoing economic reforms, and a favourable demographic advantage.

While risks persist, particularly from elevated energy prices, subsidy pressures on government spending, and uncertainty in global demand, Indias macroeconomic fundamentals remain strong.

Over the medium term, sustained consumption, gradual investment recovery, and expanding global trade linkages are expected to reinforce Indias position as a key driver of global economic growth.

Wood panel industry overview

Wood-based panels — encompassing decorative laminates, particleboard/chipboard, plywood, medium-density fiberboard (MDF), plywood, decorative veneers, engineered wooden flooring, and engineered wooden doors — form the structural and aesthetic backbone of the global furniture, construction, and interiors industries. Their versatility, cost efficiency, and adaptability as engineered substitutes for solid timber have made them indispensable across residential, commercial, and hospitality applications.

The global wood-based panel industry is expected to grow steadily, driven by increasing demand from furniture and construction. Furniture remains the largest application segment, while construction is the fastest-growing end-use, supported by continued residential and commercial infrastructure development across emerging economies. Asia- Pacific is leading growth, driven by China, India, Japan, and ASEAN manufacturing ecosystems. The regulatory landscape is evolving rapidly, with stricter environmental and product safety standards influencing manufacturing practices across the wood-based panel industry. Increasing emphasis on low-emission products, reduced formaldehyde content, recycled wood, and low-VOC materials is encouraging manufacturers to invest in cleaner technologies, sustainable raw materials, and innovation, while creating opportunities for differentiated, value-added offerings.

Indias wood-based panel industry is at a structural inflection point, transitioning from a fragmented, unorganized base toward a compliance-driven, technology-enabled ecosystem. The industry is expected to witness robust growth over the coming years, supported by rising urbanization, increasing demand for modular furniture, expanding residential and commercial construction, and greater consumer preference for engineered wood products. Engineered wood — spanning plywood, MDF, and chipboard — continues to strengthen its share within the broader wood industry. Two structural catalysts are reshaping the industry simultaneously. First, the BIS Quality Control Order (QCO) — introduced 2025 covering MDF, chipboard, blockboard, plywood, and shuttering plywood — has made BIS certification and ISI marking mandatory, triggering a surge in domestic manufacturing investment while disrupting import flows. Second, the Union Budget 2026-27 reinforces demand through its housing and infrastructure allocations: PMAY-Urban and PMAY-Urban 2.0 together carry a combined Budget Estimate of H18,625 crore, total capital expenditure has been raised to H12.22 lakh crore, and the newly introduced City Economic Regions (CERs) framework allocates H5,000 crore per region to integrate Tier-II and Tier-III cities into structured economic ecosystems — all of which translate into sustained downstream demand for panels, surfaces, and interior solutions.

The wood panel industry can be divided into the following segments:

Decorative laminates: The global decorative laminates market was valued at USD 8.62 billion in 2025 and is projected to reach USD 10.30 billion by 2031, growing at a CAGR of 3.01%. Demand continues to be led by residential applications, while commercial segments such as offices, retail, and hospitality are expanding at a faster pace. Growth is supported by increasing renovation activity, modular construction, and rising preference for low- VOC, sustainable materials. In India, the decorative laminates market was valued at H13,300 crores. Strong housing activity, commercial real estate, and rising adoption of modular furniture continue to drive demand. Consumer preference is shifting toward premium finishes, while digital printing technologies and expanding distribution in Tier-II and Tier-III cities are accelerating market formalisation and growth.

Chipboard: The global chipboard (particleboard) market was valued at USD 24.6 billion in 2025 and is projected to reach USD 32.2 billion by 2034, growing at a CAGR of 2.98%. Asia-Pacific is the fastest- growing region, while pre-laminated chipboard is emerging as the fastest-growing segment, with an expected CAGR of 8.84% through 2032, driven by demand for ready-to-use decorative furniture panels. Sustainability is emerging as a key tailwind, with chipboard gaining traction due to its compatibility with eco-friendly construction practices.. In India, the chipboard market is estimated at H5,000 crore and is expected to grow attractively. Growth is supported by organised furniture retail, commercial real estate, hospitality, and infrastructure development, while the BIS Quality Control Order (QCO) is accelerating industry formalisation. Chipboard is increasingly replacing non-structural applications, with prelaminated boards gaining popularity for improving manufacturing efficiency in modular furniture.

Plywood: The global plywood market was valued at USD 56.63 billion in 2025 and is projected to reach USD 71.86 billion by 2030, growing at a CAGR of 4.88%. Demand is supported by construction, furniture manufacturing, and increasing adoption of modular and prefabricated buildings. Sustainability trends are encouraging certified sourcing and low- emission manufacturing, strengthening the position of organised producers. In India, the plywood market was valued at H30,000 crore. The organised sector, supported by mandatory BIS Quality Control Orders, expanding residential and commercial construction, and government housing initiatives. Rising demand from Tier-II and Tier-III cities is further broadening the market.

Decorative veneers: The global decorative veneer market is witnessing steady growth, supported by rising demand for premium interiors, renovation activity, and increasing adoption of low-emission, certified products. Growth is being driven by natural wood aesthetics, sustainable materials, and innovations in bio-based adhesives, although high raw material costs and substitute products remain key challenges. In India, decorative veneer demand is being supported by premium housing, commercial real estate, and organised furniture retail. Consumers are increasingly preferring authentic wood finishes over printed alternatives, while engineered and reconstituted veneers are gaining popularity for their consistency, cost efficiency, and sustainable use of timber resources.

Engineered wooden flooring: The global engineered wooden flooring market is expanding steadily, driven by urbanisation, sustainability trends, and growing demand for premium interior finishes. Engineered wooden flooring combines the appearance of natural wood with superior stability, moisture resistance, and durability, making it suitable for both residential and commercial applications. Indias engineered wooden flooring market is gaining momentum on the back of rising incomes, increasing construction activity, and growing preference for premium, low-maintenance interiors. Advances in manufacturing technology and increasing awareness of sustainable building materials continue to support market growth.

Engineered wooden doors: The global engineered wooden doors market continues to expand, driven by urbanisation, infrastructure development, and rising construction activity. Engineered wooden doors has become the preferred material due to its affordability, durability, dimensional stability, and design flexibility compared with solid wood doors. In India, demand is being driven by rapid urbanisation, higher disposable incomes, and increasing adoption across residential and commercial projects. Engineered doors offer superior resistance to moisture and warping while supporting customisation and faster installation. Growth is further supported by green building practices, organised retail, and increasing preference for pre-finished, value-added products.

Growth drivers

Demographic momentum: Indias status as the worlds most populous nation, combined with a young demographic profile, creates a strong and enduring demand driver for the housing and interiors market. With a median age of around 28 years and over 40% of the population below 25, the country is witnessing rising household formation, increasing first-time homeownership, and a growing preference for aspirational, design-led living spaces.

Rapid urbanisation: Indias urban population is expected to reach nearly 600 million by 2036, contributing close to 70% of GDP, necessitating significant investment in both residential and commercial infrastructure. At the same time, the growth momentum is broadening beyond metros, with emerging Tier II cities such as Surat, Indore, Lucknow, Jaipur and Visakhapatnam increasingly absorbing internal migration as manufacturing and IT services decentralise. This shift is expanding demand for mid-range and value-driven furnishing and surface solutions across a wider geographic base.

Rising consumption class: Indias middle class has grown at a CAGR of 6.3% between 1995 and 2021 to account for 31% of the population and is projected to reach 38% by 2031 and nearly 60% by 2047, with an addition of nearly 100 million middle-class and affluent households by 2030. This expanding cohort, with annual incomes of H5-30 lakh forms the core demand base for branded and design-led surface solutions. By 2031, this segment is expected to contribute significantly to Indias consumer spending, driving sustained demand for interior infrastructure and substrate solutions.

Housing demand and policy support: Indias real estate sector is projected to expand to nearly USD 1 trillion by 2030, contributing around 7.3% to GDP by 2025, thereby driving strong downstream demand for laminates, engineered wood panels, and allied surface solutions. This structural growth is further supported by large-scale government initiatives such as Pradhan Mantri Awas Yojana Gramin and Pradhan Mantri Awas Yojana Urban 2.0, under which millions of homes have been completed and sanctioned, with continued expansion planned through 2029. As beneficiaries transition into occupied homes, furnishing demand typically accelerates in subsequent years, translating into sustained consumption of modular furniture and interior surface upgrades.

Hospitality led demand expansion: Indias travel and tourism ecosystem is witnessing strong growth, with the market projected to reach USD 125 billion by FY27 and the hotel segment expanding from USD 32 billion in FY20 to USD 52 billion by FY27, while international tourist arrivals are expected to touch 30.5 million by 2028, generating over USD 59 billion in revenue. This expansion is driving sustained investments in hotels and resorts, increasing demand for durable, high-performance interior solutions such as compact laminates, moisture-resistant panels and premium finishes suited for high-traffic environments, positioning interior solutions players to benefit from a structurally growing institutional and project opportunity supported by repeat demand and ongoing refurbishment cycles.

Medical tourism: Indias medical tourism industry is projected to reach USD 18 billion by 2027, growing at a CAGR of 19% from USD 7 billion in 2022, driving rapid expansion of hospitals, specialty clinics and wellness facilities. This growth is accelerating demand for surfaces that meet stringent hygiene, durability and aesthetic requirements.

Commercial real-estate momentum: Indias office market is witnessing strong absorption across both metro and non-metro cities, driven by technology, consulting, BPM, e-commerce, and global capability centres. As of August 2025, gross leasing activity is on track to surpass a record 90 million square feet, led by sustained demand from technology, BFSI, and engineering sectors across the top eight cities. As occupiers continue to upgrade workspace quality and compliance standards, demand for specification- grade laminates and certified surface solutions is becoming increasingly integral to commercial fit- out requirements.

Brand led consumption shift: There is a pronounced, accelerating shift from unbranded to branded products in the surfaces and interiors category. Rising consumer awareness around quality, aesthetics, safety, and sustainability is driving greater trust in established brands that deliver consistency and reliability. This transition is amplified by urbanisation, improved access to product information through digital channels, and growing aspirations for premium living spaces — all of which create durable, structural tailwinds for branded players that invest in design innovation and quality assurance.

Sustainability and eco-label demand: Rising adoption of green building practices and certified supply chains is steadily redirecting demand towards low-emission substrates and eco-certified surface solutions. Frameworks such as Forest Stewardship Council certification and Indian Green Building Council standards are gaining wider acceptance, with Indias green building market projected to reach USD 39 billion by 2025 and over 7,000 certified projects covering 1.37 billion square feet. Concurrently, regulatory measures including BIS standards and quality control norms are reinforcing the shift towards compliant, low-VOC materials. This evolving specification environment is consolidating demand in premium residential and certified commercial segments, closely aligning with differentiated product certifications and manufacturing capabilities.

Company overview

Greenlam Industries Limited is a leading integrated wood panel solutions provider, recognized as Asias largest laminate manufacturer and among the top three globally. It is also Indias leading decorative veneer brand. The Company is the exclusive domestic manufacturer of engineered wooden flooring and among the first organized players in Indias engineered wooden doors segment. It has further expanded into the chipboard business through its subsidiary, Greenlam Limited, by setting up one of Indias largest fully automated manufacturing facilities in Andhra Pradesh.

At the group level, Greenlam has an annual production capacity of 24.52 million laminate sheets, 2.92 lakh cubic meters of chipboard, 4.2 million square meters of decorative veneers, 1.0 million square meters of engineered wooden flooring, 18.9 million square meters of plywood, and 0.12 million units of doors and frames. The Company operates state of the art manufacturing facilities across Behror in Rajasthan, Nalagarh in Himachal Pradesh, Tindivanam in Tamil Nadu, Prantij in Gujarat, and Naidupeta in Andhra Pradesh. Through its diverse portfolio, Greenlam delivers solutions that enhance living spaces while elevating consumer lifestyles.

Laminates & allied businesses*

Manufacturing facilities: Behror, Rajasthan;

Nalagarh, Himachal Pradesh; Prantij, Gujarat Installed capacity: 21.02 million sheets per annum

Leading brands: Greenlam, Mikasa, Greenlam Clads, Greenlam Sturdo

Production: 18.89 million sheets Production growth: 3.7% y-o-y Capacity utilisation: 89.9%

Sales volume: 18.71 million sheets Sales volume de-growth: 0.30% y-o-y Revenue: H2015.5 crore Segment contribution: 83.5%

Revenue growth: 7.8% y-o-y *information on standalone basis

9,300

H cr, total size of the domestic market in India

4,000

H cr, total exports from India

6,500

H cr, share of the organized market in India

2,800

H cr, share of the unorganized market in India

Overview

Greenlam maintained its leading position in the decorative laminates segment, driven by a strong emphasis on design innovation, superior quality, and sustainability. Its diverse product portfolio and extensive global footprint continue to strengthen its presence across residential, commercial, and institutional applications.

Outlook

The outlook for the laminates business remains structurally strong, supported by a combination of domestic premiumisation, export competitiveness, capacity expansion and deeper integration across interior solution categories. Laminates are expected to remain the principal growth and profitability engine for the company over the medium term.

Decorative veneers business

Manufacturing facility: Behror, Rajasthan Installed capacity: 4.20 million square meters per annum Brand: Mikasa

Production: 1.24 million sq. m.

Production de-growth: 7.2% y-o-y Capacity utilisation: 29.0%

Sales volume: 1.28 million sq. m.

Sales growth: 4.9%

Revenue: H123.0 crore Segment contribution: 5.1%

Revenue growth: 8.4%

Overview

Greenlam continues to hold a leadership position in Indias veneer market. Demand is supported by growing affluence and higher consumption across residential and hospitality segments.

Outlook

The company remains optimistic of this segment, and expects significant growth in the future. The implementation of Quality Control Order (QCO) is expected to accelerate the shift towards organised players by moderating the presence of regional and unorganised competitors.

Engineered wooden flooring business

Manufacturing facility: Behror, Rajasthan

Installed capacity: 1.00 million sq. m. per annum

Brand: Mikasa

Production: 0.12 million sq. m.

Production de-growth: 9.2% y-o-y

Capacity utilisation: 12.0%

Sales volume: 0.13 million sq. m.

Sales de-growth: 8.7% y-o-y Revenue: H51.6 crore

Segment contribution: 2.1%

Revenue de-growth: 6.8% y-o-y

Overview

Engineered wooden flooring combines visual appeal with durability and ease of installation. Greenlam is the only domestic manufacturer, providing products designed for Indian climatic conditions, backed by robust warranties and professional installation services.

Outlook

The Company remains optimistic about growing significantly in the flooring segment , supported by the revival of deferred projects and improving demand across premium interiors. Global supply disruptions, including higher import lead times due to geopolitical tensions and production disturbances in Europe arising from gas shortages, is expected to create favourable opportunities for domestic manufacturers.

Engineered wooden doors business Manufacturing Facility: Behror, Rajasthan

Installed Capacity: 120,000 doors per annum

Brand: Mikasa Production: 32489 units

Production growth: 10.4% y-o-y

Capacity utilisation: 27.0%

Sales volume: 31450 units Sales de-growth: 3.7% y-o-y

Revenue: H59.8 crore

Segment contribution: 2.5%

Revenue growth: 29.8% y-o-y

Overview:

Demand for engineered wooden doors is increasing, supported by their cost effectiveness, durability, and minimal maintenance requirements. These products are gaining widespread acceptance in hospitality and contemporary construction projects.

Outlook

The Company expects the business to grow significantly over the coming period, driven by rising acceptance of engineered door solutions across residential, commercial and hospitality projects. With growing awareness, faster delivery capabilities and integrated installation support, the segment is expected to witness steady and sustainable growth going forward.

Plywood business

Manufacturing facility: Tindivanam, Tamil Nadu Installed capacity: 18.9 million sq. m. per annum Brand: Mikasa Plywood Production: 6.78 million sq. m.

Production growth: 40.7% y-o-y Capacity utilisation: 36.0%

Sales volume: 6.43 million sq. m.

Sales volume growth: 33.1% y-o-y Revenues: H165.2 crore Segment contribution: 6.8% y-o-y Revenue growth: 35.1% y-o-y

Overview

Greenlam forayed into the Indian plywood market in June 2023 with the introduction of the MikasaPly brand. The market is experiencing robust growth, supported by increasing demand from residential and commercial segments, wider distribution reach, and the growing presence of premium branded showrooms.

Outlook

The plywood business is expected to transition from an investment-led phase to a scale-led phase over the next few years. As utilisation improves, regional expansion deepens and cross-selling accelerates, the business is expected to move closer towards profitability and emerge as an important long-term growth pillar within Greenlams integrated interior solutions portfolio.

Financial overview

Revenue from operations g rew by 9.44% from H2,206.9 crore in FY 2024-25 to H2415.19 crore in FY 2025-26. The EBITDA margin increased by 30 basis points from 11.3% in FY 2024-25 to 11.6% in FY 2025-26.

Key ratios

Particulars	FY26	FY25
Gross Debt-equity ratio	0.37	0.40
Net Debt-equity ratio	0.32	0.34
Return on net worth (%)	10.9	9.9
Book value per share (H)	49.68	44.57
Debtors Turnover (days)	32	25
Inventory Turnover (days)	75	80
Interest Coverage Ratio	8.04	5.39
Current Ratio	1.14	1.17
Operating Profit Margin (%)	11.6	11.3
Net Profit Margin (%)	5.7	5.1

Note:

1. Increase in Return on Net Worth was due to a higher net profit after tax in FY26.

2. Debtors turnover days were higher by 7 days due to higher export receivables in FY26.

3. Interest Coverage Ratio was improved due to lower interest expenses and higher EBITDA during FY26.

Risks and concerns Competition risk

Risk: Intensifying competition within the decorative surfaces and interior solutions industry may exert pressure on Greenlams market share, pricing power, and margins.

Mitigation: Greenlam continues to strengthen its market position through an extensive distribution network and a diversified portfolio spanning laminates, veneers, engineered wood flooring, and doors. Continuous investment in design innovation, product differentiation, and superior quality enables the company to maintain a strong brand presence and remain competitive across market cycles.

Product obsolescence risk

Risk: Rapidly evolving consumer preferences and design trends may reduce the relevance of certain products, potentially affecting demand and inventory management.

Mitigation: The company closely monitors market trends and consumer insights to guide its product development initiatives. By regularly introducing contemporary designs, textures, and functional solutions, Greenlam ensures its portfolio remains aligned with changing customer expectations while strengthening its position as a comprehensive provider of interior surfacing solutions.

Financial risk

Risk: Ineffective management of liquidity, working capital, and financial obligations could affect the companys financial flexibility and longterm sustainability.

Mitigation: Greenlam maintains prudent financial discipline through effective receivables and payables management and a balanced capital structure. As of March 31,2026, the company held H72.2 crore in cash and liquid investments. The company also maintained a strong debt service coverage ratio of 4.46 and an interest coverage ratio of 8.04 times, reflecting sound financial health and operational resilience.

Quality risk

Risk: Any deterioration in product quality could adversely impact customer trust, brand reputation, and overall business performance.

Mitigation: Greenlam operates advanced manufacturing facilities equipped with robust quality- control systems and process-monitoring mechanisms. A strong emphasis on precision manufacturing, continuous improvement, and resource optimisation helps ensure consistent product quality while minimising defects and wastage.

Distribution risk

Risk: Inefficiencies in the distribution network may limit market penetration and slow expansion into emerging markets and geographies.

Mitigation: Greenlam has established a strong distribution ecosystem comprising more than 40,000 dealers, distributors, and retailers across India. This network is supported by efficient logistics infrastructure that enables timely product availability. Additionally, the companys presence in over 120 countries provides access to diversified global markets.

Technology risk

Risk: Limited adoption of advanced technologies may affect operational efficiency, decision-making capabilities, and overall competitiveness.

Mitigation: The company continues to invest in modern digital infrastructure, including the SAP S/4HANA platform along with integrated CRM and Dealer Management Systems (DMS). These systems enable real-time data visibility, enhance operational efficiency, and support data-driven decision-making across the organisation.

Raw material price volatility risk Risk: Fluctuations in the prices and availability of key raw materials such as kraft paper, chemicals, and resins may impact production costs and profitability.

Mitigation: The company mitigates this risk through diversified supplier relationships, strategic sourcing practices, and operational efficiencies that help manage cost pressures while maintaining product quality.

Regulatory and compliance risk Risk: Changes in environmental regulations, safety standards, or trade policies could increase compliance costs or affect operational processes.

Mitigation: Greenlam maintains robust compliance systems and closely monitors regulatory developments to ensure adherence to applicable laws and industry standards across all operating geographies.

Supply chain disruption risk

Risk: Disruptions in supply chains due to geopolitical events, transportation challenges, or supplier constraints may affect production schedules and product availability.

Mitigation: The company works with a diversified supplier base and maintains strong supply chain planning and inventory management practices to ensure operational continuity.

Brand and reputation risk

Risk: Any negative perception regarding product performance, sustainability practices, or customer service could impact brand equity and market credibility.

Mitigation: Greenlam focuses on maintaining high standards of product quality, transparent communication, and sustainable business practices to safeguard and strengthen brand reputation.

Human resources

Greenlam Industries Limiteds human resource strategy continues to play an important role in strengthening organisational capabilities and supporting the Companys growth journey. During the year under review, the Company strengthened its talent ecosystem through focused investments in recruitment, structured onboarding programmes, leadership pipeline development and workforce integration, while further enhancing employee engagement and workforce connectivity across locations.

The Company advanced its people development agenda through targeted learning and development interventions focused on sales, technical, managerial and behavioural competencies. Partnerships with reputed academic institutions, leadership development initiatives, mentoring programmes and technology-enabled learning platforms supported continuous capability building and strengthened succession preparedness across the organisation.

Greenlam remains committed to fostering a high- performance work environment by encouraging employee engagement, promoting continuous learning and advancing inclusion. The Company continued to strengthen employee experience through HR digitisation initiatives, responsive support systems, enhanced communication platforms and progressive people management practices, reinforcing its employer value proposition and supporting long-term organisational growth.

As of March 31, 2026, the Company had a total workforce of 2740 employees on its payroll.

Opportunities

Greenlam Industries Limited stands to benefit from the gradual shift in consumer behaviour towards higher-quality, durable, and branded interior solutions. This evolving preference is expected to drive a faster transition from the unorganised to the organised segment in the wood panel market.

With strong brand recognition, a diversified product offering, and a consistent focus on innovation and customer satisfaction, the Company is well positioned to leverage these structural trends and enhance its leadership position in India and global markets.

Threats

Dependence on imported raw materials, especially from neighbouring countries, may expose the Company to risks arising from regulatory changes, trade policy developments, or potential supply disruptions. Moreover, the price-sensitive nature of the market may constrain the Companys ability to completely transfer rising input costs to customers, potentially placing pressure on profitability.

Internal Control Systems and Their Adequacy

Greenlam Industries Limited has established a comprehensive system of internal controls that is aligned with the scale, complexity, and nature of its operations. These controls are designed to ensure the reliability of financial reporting, safeguard Company assets, promote operational efficiency, and ensure compliance with applicable laws and regulations.

The Board of Directors, supported by the Audit Committee, oversees the effectiveness of the Companys internal control framework. Periodic reviews and internal audits help ensure that the controls remain robust, responsive, and capable of identifying and mitigating potential business risks.

Cautionary statement

Statements in this section, describing the Companys objectives, projections, expectations, or estimates, may beforward-looking statements under applicable securities laws and regulations.