Garware Hi-Tech Films Limited — Q1 FY26

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.