Garware Hi-Tech Films (500655) Q4 25/26 earnings summary

Executive summary

• Achieved record consolidated revenue of Rs 2,120 crore and PAT of Rs 338 crore in FY26, with highest-ever quarterly profitability in Q4, reflecting strong execution despite global headwinds and tariff disruptions.

• Strategic capacity expansion and innovation in product lines, including new PPF and SCF lines, supported by over Rs 700 crore capex funded via internal accruals.

• Expanded D2C and B2B footprint with rapid growth in Application Studios and Home Solutions, enhancing market reach in India and globally.

• Board recommended a final dividend of Rs 12 per share for FY26, subject to AGM approval.

• Leadership changes include appointment of Ms. Sonali Rajesh Mehta as Independent Director and re-appointment of Ms. Monika Garware as Vice Chairperson and Joint Managing Director.

Financial highlights

• FY26 consolidated revenue at Rs 2,120 crore (up 0.5% YoY); EBITDA at Rs 500 crore (margin 23.6%); PAT at Rs 338 crore (margin 16%).

• Q4 FY26 consolidated revenue: Rs 597 crore (up 8.9% YoY, 30.1% QoQ); EBITDA: Rs 157 crore (margin 26.2%); PAT: Rs 108 crore (margin 18.1%).

• Export share at 75% of revenue; value-added products contribute 87%.

• Maintained a debt-free balance sheet with cash and equivalents of Rs 774 crore at year-end.

• Standalone FY26 revenue: Rs 1,947.56 crore; PAT: Rs 334.73 crore; EPS: Rs 144.08.

Outlook and guidance

• Guided for FY27 revenue of at least Rs 2,500 crore, targeting 15–25% growth, with margin improvement expected as new TPU and SCF lines come online.

• Continued focus on D2C expansion, digital marketing, and innovation-led product launches to drive future growth.

• New sun control film plant to be operational by June 2027, supporting both export and domestic markets.

• Management expects sustained margin expansion and operational efficiency despite global volatility.

• Targets to scale Garware Home Solutions to 50 by FY27.