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Revenue
₹495 Cr
verified against source
Revenue YoY
4.3%
reported change
EBITDA
₹123 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Garware Hi-Tech Films reported a modest Q1 FY26 with consolidated revenue of 495 cr (+4.3% YoY), EBITDA of 123 cr (margin 24.8%, down 260bps YoY), and PAT of 83 cr (-6.2% YoY). The miss versus internal expectations of ~550 cr was driven by early monsoons disrupting domestic sun control and shrink film demand (~25-30 cr impact) and US tariff uncertainty delaying industrial product orders (~20 cr impact). Paint protection film (PPF) was a bright spot, growing 28% YoY across geographies. Management withdrew the earlier FY26 revenue guidance of 2,500 cr due to extreme tariff volatility—US tariffs on Indian goods escalated from 6.25% to 41.25% in stages, with the latest 25% hike announced just days before the call. Mitigation efforts include cost efficiencies, channel partner absorption, and accelerating growth in Middle East (targeting 30-40% growth) and Europe (~20%). Risk: Further tariff escalation or prolonged uncertainty could materially compress margins, especially in the lower-margin industrial segment.
Colored figures show movement against the previous available record.
Guidance to track
- Management withdrew the earlier 2,500 cr revenue guidance due to extreme tariff uncertainty and dynamic trade policy.
- Management targets 30-40% revenue growth in Middle East, driven by architectural segment and new manpower in Saudi Arabia.
- Management targets ~20% growth in Europe, leveraging new manpower added six months ago.
- Management targets 300 franchisee studios by end of FY26, up from 250+ currently.
Risks flagged
- Cumulative US tariff on Indian goods increased from 6.25% to 41.25%, with the latest 25% hike announced just before the call. Management could not quantify the impact and withdrew revenue guidance.
- Analyst raised concern that prolonged tariff uncertainty could lead to order deferrals and shift to domestic US producers or lower-tariff countries. Management acknowledged lower-margin industrial segment is most vulnerable.
- Early monsoons caused ~25-30 cr revenue loss in domestic sun control and shrink film segments. Recovery depends on extended summer heat in Q2/Q3.
- US-based competitors may gain pricing advantage if they can absorb tariff impacts better, especially in industrial products where margins are thin.
Key quotes
- The first 10% impact could have been 100 cr in the bottom line that means 33 cr for the quarter 1. However, it was absorbed by all our efforts during the entire supply chain.
- We would like to stay away from giving any guidance right now because this is something even if I say something but we don't know how much will be reversed or will happen.
- We were like I can say 10 to 15% lower in US market for the obvious reason that we were exporting to that market and they were manufacturing the product there itself.
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