Garware Hi-Tech Films Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Garware Hi-Tech Films Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Garware Hi-Tech Films reported Q1 FY27 revenue from operations of INR633 crores, up 28% year-on-year, with EBITDA up 56% to INR192 crores and EBITDA margin expanding to a record 30.30%. Profit after tax grew 60% year-on-year to INR133 crores with PAT margin at 21%. Management attributed the improvement to a richer specialty product mix, growth in Sun Control and Paint Protection Films, and reaffirmed FY27 guidance of over INR2,500 crores revenue with EBITDA margin of 25% plus/minus 2%.
Numbers mentioned
Revenue from operations: INR633 crores (Q1 FY27)
p. 4
“Revenue from operations for the quarter stood at INR633 crores, growing 28% year-on-year basis.”
Deepak Joshi, page 4 of the filed PDF · View the filing
EBITDA: INR192 crores (Q1 FY27)
p. 4
“EBITDA increased 56% year-on-year to INR192 crores with EBITDA margin expanding by 544 basis points to a record of 30.30%, crossing the 30% milestone for the first time in company's history and significantly exceeding the upper end of our long-term guidance range.”
Deepak Joshi, page 4 of the filed PDF · View the filing
Profit before tax: INR176 crores (Q1 FY27)
p. 4
“Profit before tax increased 60% year-on-year to INR176 crores, while profit after tax also grew 60% year-on-year to INR133 crores.”
Deepak Joshi, page 4 of the filed PDF · View the filing
PAT margin: 21% (Q1 FY27)
p. 4
“PAT margins expanded by approximately 420 basis points to 21%, reflecting the strength of our specialty-led business model, disciplined execution and improving operational capability.”
Deepak Joshi, page 4 of the filed PDF · View the filing
Cash and liquid investments: INR850 crores
p. 5
“the company remains debt-free with a healthy cash and liquid investment balance of INR850 crores.”
Deepak Joshi, page 5 of the filed PDF · View the filing
New sun control line investment: INR192 crores
p. 5
“last quarter, we announced an investment of INR192 crores towards a new state-of-the-art sun control film manufacturing line, incorporating advanced robotics and automation.”
Deepak Joshi, page 5 of the filed PDF · View the filing
Garware Application Studio network (India): over 250 locations
p. 4
“In India, our Garware Application Studios network has now expanded to over 250 locations, while Garware Home Solutions continues to scale steadily with 9 studios currently operational.”
Deepak Joshi, page 4 of the filed PDF · View the filing
International application studios: 14 studios
p. 4
“we continued expanding our global application studio network with 14 international studios across Middle East and the United States, strengthening our direct customer engagement in key export markets.”
Deepak Joshi, page 4 of the filed PDF · View the filing
Tariff refund received to date: 30% to 40% of expected amount (Q1 FY27 to date)
p. 8
“we have received roughly 30% to 40% of what we are expecting in quarter 2.”
Deepak Joshi, page 8 of the filed PDF · View the filing
Architectural segment revenue share: more than 25% (Q1 FY27)
p. 7
“If you really see like from 5% revenue percentage of architectural today stands more than 25%.”
Deepak Joshi, page 7 of the filed PDF · View the filing
Sun Control share of revenue: around 55% (Q1 FY27)
p. 7
“this quarter, Sun Control was around 55% and PPF was 20% and balance was industrial product.”
Deepak Joshi, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — over INR2,500 crores · FY27
stated firmly by Deepak Joshi
p. 5
“we reaffirm our guidance of achieving over INR2,500 crores in revenue for FY27 while maintaining EBITDA margin in the range of 25% plus/minus 2%.”
Deepak Joshi, page 5 of the filed PDF · View the filing
EBITDA margin — 25% plus/minus 2% · FY27
stated firmly by Deepak Joshi
p. 5
“we reaffirm our guidance of achieving over INR2,500 crores in revenue for FY27 while maintaining EBITDA margin in the range of 25% plus/minus 2%.”
Deepak Joshi, page 5 of the filed PDF · View the filing
Revenue CAGR — 15% to 20% · medium term
stated as an aspiration by Deepak Joshi
p. 5
“Over the medium term, we continue to target 15% to 20% revenue CAGR, supported by capacity expansion, increasing contribution from value-added products and backward integration through the TPU project, the new project introductions and continuous expansion of our direct-to-consumer platform and disciplined execution.”
Deepak Joshi, page 5 of the filed PDF · View the filing
TPU project commissioning — Q3 FY27
stated firmly by Deepak Joshi
p. 5
“The TPU project remains on track for commissioning during the third quarter of FY27.”
Deepak Joshi, page 5 of the filed PDF · View the filing
New sun control line commercial production — approximately 1,200 lakh square feet annual capacity · H1 FY28
stated firmly by Deepak Joshi
p. 5
“This facility will add approximately 1,200 lakh square feet of annual capacity and is expected to commence commercial production in H1 FY28, supporting both domestic and export growth opportunities.”
Deepak Joshi, page 5 of the filed PDF · View the filing
Garware Home Solutions studio count — 50 studios · end of FY27
stated firmly by Deepak Joshi
p. 4
“We remain firmly on track to expand this network to 50 studios by end of FY27.”
Deepak Joshi, page 4 of the filed PDF · View the filing
Revenue — INR3,500 crores · three to four years
stated as an aspiration by Deepak Joshi
p. 8
“So we can say in three to four years, we are going to touch INR3,500 crores.”
Deepak Joshi, page 8 of the filed PDF · View the filing
Revenue — INR3,000 crores · FY28
stated as an aspiration by Deepak Joshi
p. 10
“in the journey between maybe two years after, we can see INR3,000 crores number that is in horizon, yes.”
Deepak Joshi, page 10 of the filed PDF · View the filing
EBITDA margin uplift from TPU line — 1.5% to 2% · FY28
stated firmly by Deepak Joshi
p. 9
“we have given a guidance of 1.5% to 2% after this line comes into stream, of course, for FY28.”
Deepak Joshi, page 9 of the filed PDF · View the filing
Tariff refund receipt — anywhere around INR50 crores plus net · Q2 FY27
stated conditionally by Deepak Joshi
p. 13
“if you talk of net number, I expect anywhere around INR50 crores plus should be with us.”
Deepak Joshi, page 13 of the filed PDF · View the filing
TPU business scale — beyond INR500 crores · three years
stated as an aspiration by Deepak Joshi
p. 15
“if you give us three years' time line, definitely, this is a scalable beyond INR500 crores business.”
Deepak Joshi, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the margin was not due to any exceptional item but reflects genuine performance and product mix shift toward higher-value specialty products, and expects to remain in the guided range.
Answered by Deepak Joshi
Asked by Viraj Parekh: Are the ~60% gross margins this quarter sustainable or will they normalize to prior 54-55% levels?
p. 6
“Even on the gross margin, there is nothing exceptional. I mean this has come purely from the performance of the company, right?”
Deepak Joshi, page 6 of the filed PDF · View the filing
No tariff impact was included in Q1 results; roughly 30-40% has been received so far and the remainder is expected in Q2.
Answered by Deepak Joshi
Asked by Aman: How much of the tariff refund has been received and what remains?
p. 8
“So the quarter 1, where we are discussing currently, there was no impact of tariff. I mean we didn't receive anything in the quarter 1.”
Deepak Joshi, page 8 of the filed PDF · View the filing
Management confirmed the medium-term target of INR3,500 crores in three to four years and said INR3,000 crores is achievable roughly two years out.
Answered by Deepak Joshi
Asked by Rahul Jain: Given TPU, SCF and PPF expansions ramping up, can revenue reach INR3,000 crores plus in FY28?
p. 10
“definitely, I have given you the guidance that in next three to four years, we will be somewhere around INR3,500 crores.”
Deepak Joshi, page 10 of the filed PDF · View the filing
The old PPF line runs at nearly full utilization while the new line runs around 60%, with some volume lost due to shipping delays from the Middle East conflict.
Answered by Deepak Joshi
Asked by Rahul Jain: What is the current utilization of the PPF lines?
p. 10
“PPF old line is running almost 100% and the new one is running at the rate of roughly 60%.”
Deepak Joshi, page 10 of the filed PDF · View the filing
Management estimated the new SCF line's peak asset-turn revenue potential.
Answered by Deepak Joshi
Asked by Swechha Jain: What peak revenue can the new SCF line generate?
p. 11
“That will be roughly INR500 crores, INR550 crores.”
Deepak Joshi, page 11 of the filed PDF · View the filing
Management described the TPU market as needing to be created but estimated it could be around INR1,000 crores, though supply may lag demand initially.
Answered by Deepak Joshi
Asked by Swechha Jain: What is the addressable market for new TPU-based products?
p. 12
“We can talk of something like I won't be surprised if I say like this is easily INR1,000 crores, but we need to really get there with our products and the time line, right?”
Deepak Joshi, page 12 of the filed PDF · View the filing
Management said the margin expansion came from product mix and a strategic shift toward higher-end architectural and specialty products, with no exceptional items.
Answered by Deepak Joshi
Asked by Deepak Ajmera: Apart from product mix, were there other contributors to the margin expansion?
p. 16
“So these two, one is the product mix and then strategic focus towards the growth where we are creating market, making awareness and selling more of such products, right? So that's the reason of margin expansion.”
Deepak Joshi, page 16 of the filed PDF · View the filing
Management said raw material correlation to end product cost is only about 10-12% due to significant in-house value addition, and cost increases are passed to customers after negotiation.
Answered by Deepak Joshi
Asked by Dikshi Jain: How have raw material prices moved and what is the margin impact?
p. 15
“there are 10 components which we manufacture on our own, right? So their raw material to the end product ultimately reaches only to 10%.”
Deepak Joshi, page 15 of the filed PDF · View the filing
Management said the main challenge is consumer and market education rather than manufacturing or distribution capacity, and that campaigns to educate institutions and consumers are underway.
Answered by Deepak Joshi
Asked by Nikhil Chaudhary: What is the bottleneck preventing growth beyond the 15-20% guided range given the large TAM?
p. 20
“So the biggest challenge with TAM is what you are considering is something which like you are thinking, I'm thinking, right? A consumer needs to be educated for that, right?”
Deepak Joshi, page 20 of the filed PDF · View the filing
Management said it is evaluating inorganic growth opportunities and plans further capex to strengthen backward and forward integration rather than immediate shareholder payouts.
Answered by Deepak Joshi
Asked by Ishit Desai: What are the company's plans for utilizing its large cash balance—dividend, buyback, or reinvestment?
p. 22
“I think in a couple of months' time, first of all, we are working on some inorganic growth where we have evaluated in the past.”
Deepak Joshi, page 22 of the filed PDF · View the filing
Risks flagged
Supply chain disruption in the Middle East due to war affecting shipments
p. 4
“However, currently, our supply chain remains impacted due to war.”
Deepak Joshi, page 4 of the filed PDF · View the filing
Ship delays in Jebel Ali causing lost volumes and delayed product deliveries
p. 7
“Unfortunately, one of our ship got stuck in Jebel Ali. So we received some of the consignments late, and that's why some of the products were delayed from Q1 to Q2.”
Deepak Joshi, page 7 of the filed PDF · View the filing
Ongoing Middle East delivery challenges due to constantly changing conditions
p. 8
“And Middle East, actually growth and demand is really big. But unfortunately, we are facing some challenges sometimes on the deliveries because every week, there is a change in the situation.”
Deepak Joshi, page 8 of the filed PDF · View the filing
Possibility of unexpected market conditions affecting future margin performance
p. 11
“We are happy to say that we are conservative because we have seen times when something unexpected comes into the market.”
Deepak Joshi, page 11 of the filed PDF · View the filing
Initial resistance from channel partners to the direct-to-consumer shift
p. 13
“Yes. Definitely, there wassome resistance from all of them.”
Deepak Joshi, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.