Garware Hi-Tech Films (500655) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 performance was stable despite early monsoon onset, tariff uncertainties, and geopolitical shifts, impacting key segments like automotive and beverage-related films.

• Consolidated revenue for Q1 FY26 rose 4.3% year-over-year to ₹495 crore, with EBITDA at ₹123 crore (24.8% margin) and PAT at ₹83 crore (16.8% margin).

• Strategic investments in new Paint Protection Film (PPF) and Thermoplastic Polyurethane (TPU) production lines are underway to drive future growth.

• Focus on cost optimization, innovation, and technology-driven niche products supported by robust R&D and patented solutions.

Financial highlights

• Q1 FY26 consolidated revenue: ₹495 crore (up 4.3% YoY); EBITDA: ₹123 crore (24.8% margin); PAT: ₹83 crore (16.8% margin).

• Standalone revenue for Q1 FY26: ₹452.64 crore; standalone PAT: ₹74.59 crore.

• Company remains debt-free with a cash surplus of over ₹700 crore as of June 2025.

• Export share of revenue at 77% for FY25; domestic revenue was 27.5%.

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

Outlook and guidance

• FY26 is expected to be challenging due to escalating tariffs, geopolitical tensions, and market volatility, especially in the U.S.

• No updated revenue guidance provided due to ongoing market volatility and tariff uncertainty.

• Incremental growth anticipated from new PPF and TPU lines, with commercial production of the new TPU line expected by October 2026.

• Strategic focus on cost efficiencies, operational improvements, and expanding in Middle East and Europe.