Airo Lam Ltd (AIROLAM)
🎯 Key Takeaways
- Airo Lam Ltd is in a strategic transition phase, shifting from domestic-focused operations toward international expansion while divesting non-core foreign associates. The company is monetizing its stake in Airolam Asia Pacific to free up capital, signaling a recalibration of its global footprint and governance posture.
- Revenue declined 17% QoQ to ₹58 in Q4FY26.
- ⚠️ 1) Margin compression is evident, with OPM declining from 7.7% to 3.6% over three quarters, though no operational cause was cited in filings. 2) The c
- ROE
- 7.0%
- ROCE
- 9.8%
- Debt/Equity
- 1.04
- Promoter
- 53.4%
📖 The Story
Airo Lam Ltd is in a strategic transition phase, shifting from domestic-focused operations toward international expansion while divesting non-core foreign associates. The company is monetizing its stake in Airolam Asia Pacific to free up capital, signaling a recalibration of its global footprint and governance posture.
📰 What's Happening
In Q1FY27, the company incorporated two wholly owned subsidiaries in the USA and Poland to expand international sales of plywood and laminates. It also approved the sale of a 40% stake in its Thailand-based associate, Airolam Asia Pacific, reducing its holding from 49% to 9% and ending associate status, pending FEMA approvals. The transaction is expected to close by July 30, 2026. Additionally, the board appointed Ashish Sheth & Associates as the new statutory auditor following the resignation of Piyush J. Shah & Co.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|
| Revenue | 54 | 62 | 70 | 58 |
| Operating Profit | 4 | 5 | 4 | 2 |
| OPM % | 6.7% | 7.7% | 5.6% | 3.6% |
| Net Profit | 1 | 2 | 1 | 0 |
| EPS | ₹0.82 | ₹1.58 | ₹0.93 | ₹0.17 |
Revenue has declined sequentially from ₹70 crore in Dec 2025 to ₹58 crore in Mar 2026, with operating profit margin compressing from 7.7% to 3.6% over the same period. Net profit dropped from ₹2 crore to ₹0, and EPS fell from ₹1.58 to ₹0.17, indicating pressure on profitability. This trend suggests margin compression or volume-related headwinds, though management has not yet linked these to specific operational challenges in filings.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margin expectations in the latest filings. However, the establishment of overseas subsidiaries and the stake sale in Thailand indicate a strategic pivot toward international markets and capital reallocation. No commentary on future profitability or growth targets was included in the disclosed materials.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 15 | 15 | 15 | 15 |
| Reserves | 58 | 55 | 64 | 62 |
| Borrowings | 90 | 89 | 82 | 89 |
| Total Liabilities | 216 | 208 | 226 | 232 |
| Fixed Assets | 58 | 57 | 55 | 56 |
| Investments | 0 | 1 | 0 | 1 |
| Total Assets | 216 | 208 | 226 | 232 |
Total assets declined slightly from ₹232 crore to ₹226 crore, while equity remained flat at ₹15 crore and reserves increased marginally to ₹64 crore. Borrowings decreased from ₹89 crore to ₹82 crore, suggesting active deleveraging. The asset reduction aligns with the planned stake sale, which may further reduce liabilities and improve financial flexibility post-transaction.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +14 | +19 |
| Investing | -18 | -3 |
| Financing | +4 | -17 |
| Net Cash Flow | -0 | -0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 53.1% | 53.4% | 53.4% | 53.4% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 34.7% | 34.6% | 34.1% | 34.1% |
| # Shareholders | 4,605 | 4,406 | 4,251 | 4,276 |
Promoter holding remains stable at approximately 53.4%, with no significant changes in FII or DII participation, which remains at 0%. The number of public shareholders has gradually declined from 4,605 to 4,276, indicating possible consolidation. No insider selling or accumulation signals are evident from the data.
⚖️ Peer Comparison — Plywood Boards/Laminates
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| CENTURYPLY | 15,110 | 52.0 | 12.3% | — | 0.62 |
| STYLAMIND | 5,552 | 32.7 | 26.8% | — | 0.04 |
| GREENLAM | 5,521 | 59.3 | 10.1% | — | 0.89 |
| GREENPLY | 3,495 | 35.3 | 13.2% | — | 0.55 |
| EUROPRATIK | 2,114 | 24.5 | 50.9% | — | 0.01 |
| GREENPANEL | 1,956 | 13.7 | 12.3% | — | 0.20 |
| RUSHIL | 469 | 20.3 | 6.7% | — | 0.40 |
| ARCHIDPLY | 207 | 15.8 | 11.6% | — | 1.85 |
| WESTERNBIO | 161 | — | -59.0% | — | -4.43 |
| 516003 | 114 | 57.8 | 15.5% | — | 1.23 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Margin compression is evident, with OPM declining from 7.7% to 3.6% over three quarters, though no operational cause was cited in filings. 2) The company relies heavily on a single associate in Thailand, now being divested, with no clarity on replacement revenue streams. 3) No FII/DII exposure suggests limited institutional interest or confidence. 4) The stake sale in Thailand is subject to FEMA approvals and regulatory hurdles, introducing execution risk.
📋 Recent Filings
- 🟡 related party transaction2026-08-12Airo Lam Limited incorporated two wholly owned subsidiaries outside India: Airolam USA LLC in the United States and Airolam Europe in Poland, both eng…
- Announcement2026-07-23Airo Lam Limited clarified that its XBRL filing of half-yearly financial results contained a technical tagging error where the period type was mistake…
- 🟡 Board Meeting2026-07-21Airo Lam Limited announced on 21.07.2026 that its board approved selling a 40% stake in its Thailand-based associate Airolam Asia Pacific Co. Ltd to a…
- 🟡 Board Meeting2026-07-21Airo Lam Limited announced the appointment of M/s Ashish Sheth & Associates as its new statutory auditor following the resignation of Piyush J. Shah &…
- share transfer2026-07-04Airo Lam Limited received a SEBI Regulation 74(5) certificate from MUFG Intime India Pvt Ltd, its share transfer agent, confirming dematerialisation o…
- Financial Results2026-07-01Airo Lam Limited announced that its trading window will close on July 1, 2026, and remain shut for 48 hours after the unaudited quarterly results for …
- 🟡 Board Meeting2026-06-25Airo Lam Limited announced the resignation of statutory auditor Piyush J. Shah & Co. effective June 25, 2026, citing pre-occupation in other assignmen…
- 🔴 Announcement2026-06-25No summary available
- Announcement2026-03-31Airo Lam Limited filed a general corporate filing on March 31, 2026. The document provides routine regulatory updates but lacks specific financial met…
🧠 Analyst's Read
Airo Lam is undergoing a strategic realignment involving international expansion and asset monetization, but near-term profitability appears under pressure. Investors should monitor the outcome of the Thailand stake sale, the operational ramp-up of new overseas subsidiaries, and any improvement in margin trends in upcoming quarters.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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