Revenue rose 9.85% QoQ, but faster costs squeezed Greenlam's margin
Expenses grew faster than revenue, while other income made up 18.95% of pre-tax profit and the tax rate moved higher.
Filed 05 Nov 2026, 15:53 IST · after market close · Greenlam Industries Ltd (GREENLAM)
Key takeaways
- Revenue grew +9.85% QoQ, but expenses rose +10.28%, limiting operating-profit growth to +6.02%.
- Operating margin fell 0.35 percentage points QoQ to 9.67%, which was 1.89 percentage points below the 11.56% sector median.
- Other income contributed 18.95% of pre-tax profit, while the tax rate increased 1.14 percentage points to 32.47%.
Price around the results
Sequential growth lost pace at the operating level
Greenlam's consolidated revenue increased +9.85% QoQ, but operating profit grew only +6.02% as expenses expanded faster. Pre-tax profit still rose +17.20% and net profit increased +15.25%, helped by the lower base in the previous quarter.
Higher costs narrowed the margin
Expenses grew +10.28% QoQ against revenue growth of +9.85%, reducing operating margin by 0.35 percentage points to 9.67%. Interest rose +0.98%, while the tax rate increased 1.14 percentage points to 32.47%. Other income represented 18.95% of pre-tax profit, so reported earnings were not generated entirely by operations.
Margin remains below the consumer discretionary median
Among 262 Consumer Discretionary peers that have reported, Greenlam's 9.67% operating margin was 1.89 percentage points below the sector median of 11.56%. The available quarter-on-quarter trend shows a decline from 10.02% in Q1FY27 to 9.67% in Q2FY27.
Management highlighted capacity and efficiency initiatives
Management said Greenlam has announced a 2.0 million-sheet brownfield expansion at Naidupeta in Andhra Pradesh, with commercial production expected to start by Q4FY27. The presentation said water-reuse and system upgrades at Behror enabled annual water savings of 39 million litres, while efficiency initiatives delivered 355 TJ of annual energy savings.
Results were filed after market close
The consolidated results were filed after market close, so no immediate stock reaction is covered. There is also no post-results trading history provided for comparison with the stock's usual reaction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹875 cr | ₹797 cr | +9.85% |
| Other income | ₹7 cr | ₹6 cr | +15.27% |
| Expenses | ₹791 cr | ₹717 cr | +10.28% |
| Operating profit | ₹85 cr | ₹80 cr | +6.02% |
| Operating margin (%) | 9.67% | 10.02% | — |
| Interest | ₹20 cr | ₹19 cr | +0.98% |
| Depreciation | ₹36 cr | ₹35 cr | +0.59% |
| Profit before tax | ₹36 cr | ₹31 cr | +17.20% |
| Tax | ₹12 cr | ₹10 cr | +21.47% |
| Net profit | ₹24 cr | ₹21 cr | +15.25% |
| EPS (₹) | ₹0.96 | ₹0.83 | +15.66% |
Operating margin of 9.67% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Greenlam announced a 2.0 million-sheet brownfield expansion at Naidupeta, Andhra Pradesh, expected to start commercial production by Q4FY27.
New initiatives
- Water reuse and system upgrades enabled annual water savings of 39 million litres at the Behror facility.
- Efficiency initiatives delivered 355 TJ of annual energy savings.
What to watch
- Whether operating margin recovers from 9.67% after the 0.35 percentage-point sequential decline.
- Whether expenses grow more slowly than the +9.85% QoQ revenue increase.
- Progress toward management's stated Q4FY27 commercial-production timeline for the 2.0 million-sheet Naidupeta expansion.