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

Executive summary

• Achieved record consolidated revenue of Rs 2,120 crore and highest-ever PAT of Rs 338 crore in FY26, with strong Q4 performance and robust recovery in key markets despite global headwinds.

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

• Expanded D2C and B2B footprint with new studios and institutional partnerships, 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

• Q4 FY26 consolidated revenue: Rs 597 crore (up 8.9% YoY); EBITDA: Rs 157 crore (margin 26.2%); PAT: Rs 108 crore (up 39% YoY).

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

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

• Maintained a debt-free balance sheet with cash reserves 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

• Revenue guidance for FY27 set at minimum Rs 2,500 crore, targeting 25% ±2% growth, with margin improvement expected as new TPU and SCF lines come online.

• Projected revenue CAGR of 15–20% and EBITDA margin of 22–25% for FY27 and beyond, with export share expected to remain above 70%.

• Continued focus on D2C strategy, digital campaigns, and expansion of Application Studios and Home Solutions.

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

• Architectural and new product segments expected to drive incremental growth.