Garware Hi-Tech Films Q2 FY27 results: net profit up 41.9% to ₹129.44 crore, revenue up 22.1%

How did Garware Hi-Tech Films perform in Q2 FY27?

Garware Hi-Tech Films reported consolidated revenue of ₹695.53 crore for Q2 FY27, up 22.1% from ₹569.69 crore in the year-ago quarter and 9.9% from ₹633.08 crore in Q1 FY27. EBITDA was ₹169.47 crore, up 41.9% year on year but down 1.5% sequentially, while the margin rose 3.4 percentage points to 24.4% from 21.0% and fell 2.8 percentage points from 27.2%.

Profit before tax increased 43.7% to ₹173.06 crore from ₹120.39 crore in Q2 FY26 and was lower than ₹176.46 crore in Q1 FY27. Net profit rose 41.9% to ₹129.44 crore from ₹91.23 crore, but fell 2.4% from ₹132.65 crore in the previous quarter; basic EPS was ₹55.71, compared with ₹39.27 a year earlier and ₹57.1 in Q1 FY27.

On the standalone basis, Q2 FY27 revenue was ₹634.09 crore and profit after tax was ₹139.87 crore, against standalone profit before tax of ₹106.52 crore in Q2 FY26. The board approved the unaudited standalone and consolidated results and the corresponding limited review reports on 22 October 2026.

What changed in Garware Hi-Tech Films' costs and profit?

Total expenses increased 17.0% to ₹542 crore from ₹463.16 crore in Q2 FY26, against a 22.1% rise in revenue. Cost of materials was up 18.6% by ₹46.14 crore to ₹294.74 crore, employee cost rose 8.9% by ₹4.19 crore to ₹51.09 crore, and other expenses increased 20.0% by ₹26.63 crore to ₹159.83 crore.

Finance costs rose 37.6% by ₹0.79 crore to ₹2.89 crore, while depreciation increased 20.7% by ₹2.24 crore to ₹13.05 crore. Other income rose 40.9% by ₹5.67 crore to ₹19.53 crore, and there was no exceptional item. Tax expense was up 49.6% by ₹14.46 crore to ₹43.62 crore.

From Q1 FY27, total expenses increased 13.8% by ₹65.66 crore. Cost of materials fell 2.1% by ₹6.17 crore to ₹294.74 crore and employee cost declined 3.2% by ₹1.69 crore to ₹51.09 crore, while other expenses rose 3.6% by ₹5.59 crore and finance costs rose 18.0% by ₹0.44 crore. Other income fell 1.0% by ₹0.19 crore, and tax fell 0.4% by ₹0.19 crore.

Management said that improved realisation, a favourable product mix and operating leverage supported growth and helped offset higher raw-material and logistics costs. It also said raw-material and logistics inflation added ₹37 cr in Q2 and may not always be fully passed through. The quarter’s EBITDA bridge showed operating profit up ₹71.8 crore, employee cost up ₹4.2 crore, sales and marketing down ₹1.1 crore and other expense up ₹16.5 crore.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 24.8% by ₹263.93 crore to ₹1,328.61 crore from ₹1,064.68 crore in H1 FY26. Total income increased 25.3% by ₹275.94 crore to ₹1,367.86 crore, while profit before tax rose 51.5% by ₹118.8 crore to ₹349.52 crore.

Net profit for the first half increased 50.4% by ₹87.84 crore to ₹262.09 crore from ₹174.25 crore, and basic EPS rose from ₹75.0 to ₹112.81. Management said H1 EBITDA was ₹381 crore, with revenue mix comprising 73% from CPD, 27% from IPD and value-added products contributing 86% of revenue.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹3,319.55 crore, up from ₹3,011.19 crore at 31 March 2026, while total equity rose to ₹2,906.85 crore from ₹2,656.16 crore. The company reported no borrowings at either date, and cash increased to ₹191.62 crore from ₹126.53 crore.

Inventories increased to ₹460.99 crore from ₹389.25 crore and trade receivables rose to ₹71.56 crore from ₹53.08 crore. Trade payables increased to ₹185.21 crore from ₹180.83 crore. Management separately said cash was ₹933 crores as of 30 September 2026, including liquidity not represented by the cash figure in the consolidated balance-sheet comparison.

Operating cash flow for H1 FY27 was ₹195.34 crore, compared with ₹163.03 crore in H1 FY26. Investing cash flow was negative ₹95.26 crore against negative ₹124.13 crore, financing cash flow was negative ₹36.53 crore against negative ₹55.23 crore, and capital expenditure was ₹27.07 crore compared with ₹86.82 crore.

How has Garware Hi-Tech Films done over the last 8 quarters?

Revenue reached a quarterly high of ₹695.53 crore in Q2 FY27, after rising from ₹633.08 crore in Q1 FY27. The lowest revenue in the supplied series was ₹458.74 crore in Q3 FY26. Revenue has now increased for three consecutive quarters on a year-on-year basis, with the latest reading 22.1% above Q2 FY26.

Net profit was highest at ₹132.65 crore in Q1 FY27 before easing to ₹129.44 crore in Q2 FY27; the low in the series was ₹55.77 crore in Q3 FY26. The EBITDA margin peaked at 27.2% in Q1 FY27 and fell to 24.4% in Q2 FY27, while the lowest was 15.3% in Q3 FY26. Profit has increased year on year for three consecutive quarters.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, together with limited review reports, a press release and an investor presentation. No dividend, fund-raising or appointment was stated in the same-day excerpts.

A separate filing said the Maharashtra Pollution Control Board forfeited a ₹25 lakhs bank guarantee furnished by the company for alleged non-compliance of consent conditions. The company said it had taken compliance steps and informed MPCB, and that there was no material impact on business operations beyond the encashment value of the guarantee.

What did Garware Hi-Tech Films' management say?

Management raised FY27 EBITDA margin guidance by 200 basis points to 27% ±2% from 25% ±2%, while reaffirming revenue guidance of more than ₹2,500 crore. It indicated FY28 revenue above ₹3,000 crore, FY28 EBITDA margin of 28%-28.5% and external TPU revenue of ₹75 crore to ₹100 crore, with TPU commissioning targeted for Q3 FY27.

Management said the ₹191 cr solar-control expansion is expected to begin commercial production in H1 FY28 and add about 1,200 lakh sq ft of fungible capacity. It said PPF and SCF utilisation is expected to approach full levels by Q1 FY28, while D2C revenue is staged at ₹50 crore, ₹100 crore and ₹200 crore over three years.

Management identified seasonality, changing product mix, geopolitical headwinds and a possible Middle East slowdown as risks to demand and logistics. It also said customer concentration remains a concern, while anti-dumping protection against low-priced China PPF imports was not approved by the Finance Ministry. Architectural films were described as about 30% of window-film sales, with a 50-studio D2C target by December 2027.

How did Garware Hi-Tech Films shares react?

After the filing appeared, the stock was down 12.9% after 5 minutes, 9.7% after 15 minutes and 8.5% after 30 minutes. It closed the reaction day up 1.0% from the previous close of ₹6,635.5. By the next day’s close, the stock was up 6.4% from its pre-results close, and by the fifth session it was up 5.8%.

The industry’s median reaction-day move was negative 1.0%, and its median moves were negative 4.0% by the next day’s close and negative 1.4% by the fifth session. Garware Hi-Tech Films therefore exceeded the industry median by 2.0 percentage points on the reaction day, 10.4 percentage points by the next close and 7.2 percentage points by the fifth session. Earlier reaction-day moves included negative 1.5% on 6 August 2026, 13.6% on 6 May 2026 and negative 9.7% on 8 August 2025.

How did other Plastic Products - Industrial companies do?

Sixteen other Plastic Products - Industrial companies had filed this quarter, against a median revenue growth of 18.8%. Eight grew more slowly than Garware Hi-Tech Films and eight grew faster. Among the 20 peers whose profit was compared, 11 reported higher profit.