Garware Hi-Tech Films (500655) Q2 26/27 earnings summary

Executive summary

• Record Q2 FY27 revenue reached INR 696 crore, up 22% YoY; H1 revenue rose 25% to INR 1,329 crore.

• H1 EBITDA margin was 28.7%, above the prior 23%–27% guidance range; FY27 margin guidance rose to 27% ±2% and the INR 2,500+ crore revenue target was reaffirmed.

Financial highlights

• Q2 EBITDA was INR 189 crore, up 42% YoY, with a 27.2% margin; PBT rose 44% to INR 173 crore and PAT rose 42% to INR 129 crore.

• H1 EBITDA rose 49% to INR 381 crore; PBT increased 51% to INR 350 crore and PAT increased 50% to INR 262 crore.

• H1 cash profit was INR 293 crore, up 46%; EPS was INR 112.8, up 50%.

• H1 revenue mix was 73% Consumer Product Division and 27% Industrial Product Division; value-added products contributed 86%.

Outlook and guidance

• FY27 revenue target remains INR 2,500+ crore; EBITDA margin guidance rose by 200 bps to 27% ±2%, including other income.

• Medium-term organic sales growth commitment exceeds 20%; management cited ~20% revenue CAGR and EBITDA margin above 27%.

• FY28 revenue target is INR 3,000 crore+; full utilization of current and upcoming capacities could support INR 3,500 crore, subject to product mix and ramp-up.

• TPU integration is expected to lift consolidated EBITDA margin by 150–200 bps; FY28–31 targets include 70%+ export share and 85%+ value-added products.