Garware Hi-Tech Films Ltd.Record quarter crosses 30% EBITDA margin for the first time

Garware Hi-Tech Films delivered the strongest quarter in its history, with revenue up 28% YoY to Rs. 633 crore and PAT up 60% to Rs. 133 crore, as EBITDA margin crossed 30% for the first time ever, expanding 544 basis points to 30.30% and exceeding the upper end of the company's long-term guidance range.

Management attributed the outperformance entirely to a richer product mix -- architectural films, the highest-margin segment, have grown from roughly 5% of revenue historically to over 25% today -- and explicitly ruled out any one-off items, including US tariff refunds, which had zero impact this quarter and will instead land in Q2. Despite the beat, management held its full-year guidance at over Rs. 2,500 crore revenue with a 25% (+/-2%) EBITDA margin, framing this quarter's margin as an outperformance rather than the new steady state.

The Paint Protection Film business lost some volume after a raw-material shipment was stuck at Jebel Ali port amid the Middle East conflict, though management called underlying Gulf demand strong. The company remains debt-free with Rs. 850 crore in cash, and continues investing in its TPU backward-integration project (on track for Q3 FY27), a new Rs. 192 crore automated sun control film line, and its direct-to-consumer Garware Home Solutions network, which is expanding toward 50 studios by year-end.