Garware Hi-Tech Films (500655) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue and profitability in Q1 FY27, with revenue up 28% YoY and PAT up 60% YoY, marking the best quarter in company history.

• Growth was driven by a richer specialty product mix, strong customer engagement, and operating leverage, not by one-off items.

• Strategic focus on expanding product applications, customer outreach, and global position in specialized films, supported by investments in new TPU and Sun Control Film lines.

• Expansion of direct-to-consumer platforms and global application studios, with Garware Home Solutions targeting 50 studios by year-end.

• Continued investments in capacity expansion and product innovation to support future growth.

Financial highlights

• Q1 FY27 revenue reached ₹633 crore, up from ₹495 crore in Q1 FY26 (28% YoY growth); EBITDA rose 56% YoY to ₹192 crore, with margin at 30.3%.

• PAT increased 60% YoY to ₹133 crore, with margin at 21%; EPS at ₹57.10.

• Gross margins reached around 60%, attributed to product mix and higher-value products, with no exceptional items.

• Sequentially, revenue rose 6% from Q4 FY26; EBITDA margin increased from 26.2% to 30.3%.

• Annual revenue for FY26 was ₹2,120 crore, with an EBITDA margin of 23.6% and PAT margin of 15.9%.

Outlook and guidance

• Reaffirmed FY27 revenue guidance of over ₹2,500 crore and EBITDA margin of 25% ±2%; medium-term revenue CAGR targeted at 15%-20%.

• Margin expansion expected from new TPU line (1.5%-2% increase) and new Sun Control Film line.

• Capex projects for TPU and SCF lines progressing as planned, with commercial production expected in Q3 FY27 and H1 FY28.

• Export share expected to remain above 70%, with value-added products contributing over 85%.

• Management targets further expansion in product applications, customer reach, and global market leadership in specialty films.