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

Executive summary

• Q3 FY26 revenue declined 1.6% YoY amid global trade headwinds and a 50% U.S. tariff, but export sales remained robust, contributing 74.3%-77% of total revenues, with strong growth in the Middle East and stable performance in India and Europe.

• Strategic initiatives included launching a wholly-owned UAE subsidiary, expanding the Global Application Studio network to over 250 stores, and introducing Garware Home Solutions to strengthen D2C presence.

• The company remains debt-free with a liquidity surplus of ₹669 crore as of December 31, 2025.

• Management is focused on long-term value creation, disciplined execution, and prudent risk management amid evolving global trade and tariff conditions.

• Expansion of PPF network and digital marketing reach, with over 250+ distributors and 200+ million digital impressions.

Financial highlights

• Q3 FY26 consolidated revenue was ₹459 crore (down 1.6% YoY); 9MFY26 revenue was ₹1,523 crore (down 2.4% YoY).

• Q3 EBITDA was ₹86.7 crore (margin 18.9%, down 7.4% YoY); PAT was ₹55.8 crore (margin 12.2%, down 8.3% YoY).

• 9MFY26 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.

• Value Added Products contributed 87% of FY25 revenue.

Outlook and guidance

• Management expects Q4 and Q1 EBITDA margins to remain around 20%, with potential improvement if U.S. tariffs are reduced.

• Projected revenue CAGR of 15%-20% and EBITDA margin of 22%-25% for upcoming years, with export share above 70%.

• Architectural film segment 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.