Garware Hi-Tech Films Ltd

Financial Performance

• Revenue for the quarter: INR 633 crores, up 28% YoY.
• EBITDA rose to INR 192 crores, margin 30.30%.
• PBT stood at INR 176 crores, up 60% YoY.
• PAT was INR 133 crores; PAT margin about 21%.
• Debt-free with INR 850 crores cash and liquid investments.
• Over INR 700 crores invested in strategic expansions recently.

Operating Update

• Demand remains healthy for Sun Control and Paint Protection Films.
• Global app studios network now 14 international studios.
• India Garware Home Solutions: 250 locations; 50 studios planned by FY27.
• DGTR recommended antidumping duty on TPU-based PPF imports from China.
• Tariff refunds: Q1 impact zero; ~30–40% received in Q2; full refunds expected in Q2.
• US demand rising; Middle East momentum; supply chain affected by war.
• GHS nine studios launched; plan 50 studios by FY27.
• Balance sheet: cash and investments INR 850 crores; debt-free.

Capex and Projects

• TPU line on track for commissioning in Q3 FY27.
• TPU line to add 1.5-2% EBITDA margin in FY28.
• Sun-control line: INR 192 crores; adds 1,200 lakh sq ft annual capacity.
• Sun-control line commercial production expected in H1 FY28.
• PPF line launched Sep 2025; capacity progress.
• SCF revenue potential around INR 500-550 crores.

Guidance and Outlook

• FY27 revenue guidance over INR 2,500 crores; EBITDA margin 25% +/- 2%.
• Medium-term revenue CAGR 15-20%.
• Three-to-four-year target: INR 3,500 crores revenue.
• D2C growth to exceed INR 100 crores; expanding globally.
• Architectural products margin north of 25%.

Q&A Highlights

• Q1 gross margins around 60%; not due to an exceptional item.
• Architectural margins north of 25%; TPU adds 1-1.5% margin.
• GHS is 100% D2C; nine studios now; 50 by FY27.
• D2C could be bigger than INR 100 crores; US and global markets growing.
• Tariff refunds expected fully in Q2; net around INR 50 crores.
• US demand rising; Middle East momentum; D2C expansion planned.

Risks and Watchpoints

• War impact on supply chain; Middle East issues persist.
• Market TAM requires consumer education; growth depends on awareness campaigns.
• DGTR antidumping action poses regulatory risk.
• Execution risk in capex-driven expansion.
• Niche market creation may lengthen time to scale.

Meeting Details

• Date of call: August 7, 2026.
• Time: not disclosed.
• Type/Mode: earnings conference call, group virtual meeting.
• Organizer: Garware Hi-Tech Films Limited.

Participants

• Key company participants: management roles not separately listed.
• Company Secretary signed the communication.

Purpose

• Discuss un-audited financial results and quarterly business performance for quarter ended June 30, 2026.
• Audio recording of the call uploaded on company website.

Additional Notes

• No transcript or presentation mentioned.
• Recording is available on company site; no links included.

Interim CFO appointment

• Mr. Prashant L. Pai appointed Interim Chief Financial Officer, effective August 6, 2026, until new CFO is appointed.
• Reason: recommended by Nomination and Remuneration Committee; interim measure pending permanent CFO.
• Profile: Master’s degree; ~30 years in accounting and finance; with GHFL and group; SAP ERP experience.
• Relationship with other directors: Not Applicable.
• Term: continues until a new CFO is appointed.
• Board/committee impact: Interim KMP appointment; no immediate board composition changes stated.

Record Date and AGM Details

• Record Date: Sep 16, 2026 for dividend entitlement and remote e-voting.
• 69th AGM scheduled Sep 23, 2026 at 11:30 a.m.

Business Overview

• Leading global manufacturer of hi-tech specialty films with 3,000+ SKUs.
• Fully integrated chips-to-film operations; GreenPro certified.
• CPD contributes 74% of revenue; IPD 26%.
• Value Added Products account for 87% of revenue.
• FY26 capacity: IPD 42,000 MT; CPD 4,800 LSF; Chips Plant 66,000 MT.
• FY27 targets: Revenue CAGR 15-20%, EBITDA 23-27%, export share 70%+.

Operational Highlights

• Q1 FY27 revenue grew 28% YoY; PAT grew 60% YoY.
• SunControl Film line groundwork to expand capacity and markets.
• 250+ GAS centers; Global Application Studios planned in Middle East & USA.
• Garware Home Solutions launched in India.
• Launched ceramic and graphene coatings for vehicles.
• Introduced color PPF and DIY detailing kit.
• Global reach in 90+ countries; 1,000+ applicators trained; 55 training sessions.

Financial Performance

• Revenue CAGR 17% FY21-26; PAT CAGR 22%.
• CPD 74% of revenue; IPD 26%.
• VAP revenue ₹2,120 Cr; EBITDA margin 23.6%.
• Net debt zero; ₹774 Cr liquidity surplus as of FY26.
• Regular dividend paying company.

Capital Structure & Liquidity

• Net debt zero; ₹774 Cr liquidity as of 31 Mar 2026.
• Export share of VAP 75%.

Strategic Priorities & Outlook

• FY27 priorities: expand applications, reach more customers, strengthen global position.
• SunControl line expansion to increase capacity and address broader applications.
• Growth targets: revenue CAGR 15-20%, EBITDA 23-27%.
• Export share target 70%+, VAP 85%+.

Risks & Mitigation

• Forward-looking statements subject to geopolitical risk and global trade volatility.
• Diversified domestic and international markets mitigate risk; broad product mix.

Governance & Leadership

• Company Secretary: Awaneesh Srivastava (FCS 8513).
• IR contact: ir@garwarehitech.com.
• Leadership guidance provided by CMD and Vice Chairperson.

Financial highlights

• Revenue from operations: INR 633 crore, up 28% YoY and 6% QoQ.
• EBITDA: INR 192 crore; margin 30.3%, up 544 bps YoY.
• PBT: INR 176 crore; margin 27.9%, up 558 bps YoY.
• PAT: INR 133 crore; margin 21.0%, up 418 bps YoY.
• EPS: ₹57; up 60% YoY.

Capex and product/mix developments

• TPU line commissioning on track for Q3 FY27; ₹191 crore SCF line to commence H1 FY28.
• New products gaining traction: TPU-based UV printable films and PDLC films.
• Ceramic Coating and Graphic Solutions show market traction.

Growth initiatives and market expansion

• GAS footprint expanded to 14 international additions; 250+ Garware Application Studios in India; 9 Global Home Solutions.
• Anti-dumping duty recommendation on Chinese TPU-based PPF imports could aid domestic PPF growth.
• Outlook: focus on expanding applications, customer reach, and strengthening global position.

Financial Performance

• Revenue from operations ₹633 cr, up 28% YoY, 6% QoQ.
• EBITDA ₹192 cr, margin 30.3%, up 56% YoY, 22% QoQ.
• PBT ₹176 cr, margin 27.9%, up 60% YoY, 24% QoQ.
• PAT ₹133 cr, margin 21.0%, up 60% YoY, 23% QoQ.
• EPS ₹57, up 60% YoY; 23% QoQ.
• Cash Profit ₹148 cr, up 54% YoY, 24% QoQ.

Capex & Capacity

• TPU line commissioning on track for Q3 FY27.
• ₹191 cr SCF line progressing; production expected in H1 FY28, adds ~1,200 LSF.
• Installed capacity: IPD 42,000 MT pa; CPD 4,200 LSF pa; PPF 600 LSF; Chips Plant 66,000 MT.

Product & Market Momentum

• TPU-based UV printable films, PDLC, Ceramic Coating and Graphic Solutions saw strong traction.
• Global D2C expansion: 14 international GAS additions (3 Middle East, 11 USA).
• Domestic D2C: 250+ GAS and 9 Global Home Solutions; target 50 GHS by FY27.
• Antidumping duty tailwind: DGTR recommends anti-dumping duty on Chinese TPU-based PPF imports.

Outlook & Strategy

• FY27 priorities: expand applications, reach more customers, strengthen position in specialised films globally.
• Sun Control Film line groundwork underway to expand capacity.

Business Model & Segments

• Global manufacturer of hi-tech, value-added specialty films.
• CPD ~74% of revenue; IPD ~26%.
• Products: SunControl, PPF, Shrink Film; 3,000+ SKUs; presence in 90+ countries.
• GAS network: 250+ studios; 1,000+ applicators trained.

Risks

• Geopolitical uncertainty and volatility in global trade cited as ongoing headwinds.

Meeting Details

• Board meeting scheduled for Aug 06, 2026.
• To consider unaudited standalone and consolidated results for quarter ended Jun 30, 2026.

Key Agenda Items

• Approval of unaudited standalone and consolidated results for quarter ended Jun 30, 2026; Limited Review Report.
• AGM related matters.

Other Notes

• Trading window closed from Jun 26, 2026, for 48 hours after results declaration.