Garware Hi-Tech Films (500655) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue declined 1.6% YoY and 19.5% sequentially, reflecting global trade headwinds and a 50% U.S. tariff, but export sales remained robust, contributing 74.3% of total revenues.

• Strategic initiatives included establishing a wholly-owned subsidiary in the UAE, launching Garware Home Solutions (D2C), and expanding the Application Studio network in the Middle East and India.

• Opened two Global Application Studios in the Middle East and expanded the PPF distributor network to over 250.

• Value Added Products contributed 87% of FY25 revenue; export share at 77%.

• Maintained a strong liquidity position and net zero debt.

Financial highlights

• Q3 FY26 consolidated revenue was ₹459 crore (down from ₹466 crore YoY); EBITDA was ₹86.7 crore (margin 18.9%, down 118 bps YoY); PAT was ₹55.8 crore (margin 12.2%, down 88 bps YoY).

• 9MFY26 revenue was ₹1,523 crore (down 2.4% YoY); EBITDA was ₹343 crore (margin 22.5%, down 145 bps YoY); PAT was ₹230 crore (margin 15.1%, down 113 bps YoY).

• EPS for Q3 FY26: ₹24.01; for 9MFY26: ₹99.01.

• Cash and liquid investments stood at ₹669 crore as of Dec 31, 2025.

• Annual revenue CAGR of 21% and PAT CAGR of 27% from FY21 to FY25.

Outlook and guidance

• Revenue CAGR guidance for specialty films verticals is 15-20% with EBITDA margins of 22-25% and export share above 70%.

• Margins are expected to remain around 20% in Q4 and Q1, with potential improvement if U.S. tariffs are reduced.

• The new UAE subsidiary is expected to be fully operational in H2 FY27, with tax benefits from the free zone.

• Architectural film revenue is projected to reach ₹500 crore by FY27 and ₹1,000 crore by FY30.

• Next growth phase to be driven by Sun Control Films, Paint Protection Films, and Garware Home Solutions.