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

Executive summary

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

• Management focused on operational efficiency, cost control, innovation, and strategic investments in new PPF and TPU lines to drive future growth.

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.

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

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

• Company remains debt-free with over ₹700 crore in cash and equivalents as of June 2025.

Outlook and guidance

• FY26 expected to be challenging due to ongoing tariff uncertainties and geopolitical tensions.

• No updated revenue guidance due to dynamic tariffs; previous ₹2,500 crore target under review.

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

• Management is actively evaluating strategies to mitigate external risks and sustain long-term growth.