Garware Hi-Tech Films (500655) Q2 25/26 earnings summary

Executive summary

• Demonstrated resilience and strong fundamentals amid geopolitical volatility and increased U.S. tariffs, focusing on operational agility, innovation, and customer retention.

• Achieved sequential revenue and profit growth, supported by value-added products, export strength, and the commercialization of a new Paint Protection Film (PPF) production line.

• Launched Garware Home Solutions and expanded D2C and digital initiatives to deepen domestic and global presence.

• Strategic priorities include backward integration, global reach, B2C expansion, and sustainability certifications.

• Focused on sustainable growth and capturing emerging opportunities in key global markets.

Financial highlights

• Q2 FY26 consolidated revenue: ₹569.7 crore (down 8.2% YoY, up 15% QoQ); EBITDA: ₹133.3 crore (margin 23.4%, down 11.4% YoY); PAT: ₹91.2 crore (down from ₹104.3 crore YoY, up 10% QoQ).

• H1 FY26 revenue: ₹1,065 crore (down 2.8% YoY); EBITDA: ₹256.3 crore (down 8.6% YoY); PAT: ₹174 crore.

• Annual FY25 revenue: ₹2,109 crore; EBITDA margin: 23.5%; PAT: ₹331 crore.

• Maintained a debt-free balance sheet with liquidity surplus of ₹697 crore as of September 2025.

• Working capital days: 37; current ratio: up to 4.3x; fixed assets turnover: up to 1.4x.

Outlook and guidance

• Targeting EBITDA margins of 22-25% and revenue CAGR of 15-20% for FY26 and beyond, contingent on tariff outcomes.

• Next growth phase driven by expanded PPF capacity, D2C residential market entry, and digital expansion.

• Export share expected to remain above 70% with continued focus on value-added products.

• Q4 expected to be strong if U.S.-India tariff deal materializes.