Garware Hi-Tech Films Limited – Investor Presentation Summary

Key Operational Highlights

  • Value Added Products contribution was 86% in H1 FY27.
  • The Garware Application Studios (GAS) network expanded to 250+ locations in India and 14 in the US & MENA region for Paint Protection Film (PPF) application.
  • Garware Home Solutions for architectural films expanded to 14 studios from 6 in FY26, targeting 50 studios by FY27-end.
  • Over 1,000 applicators have been trained in India through 55+ hands-on training sessions.

Key drivers of operational performance: A favourable product mix, continued operational efficiencies, an enhanced focus on niche products, and network expansion.

Segment-wise Performance

  • Consumer Product Division (CPD): Contributed 73% of revenue. Includes Automotive SCF, Architectural SCF, Paint Protection Films (PPF), and Safety Films.
  • Industrial Product Division (IPD): Contributed 27% of revenue. Includes Shrink Film, Electrical/Electronics Insulation, Release Liners, Thermal Lamination, Plain Film, and Packaging & Lidding Film.

Explanation of significant changes in segment performance: Growth was driven by strength in specialty films within the CPD segment.

Financial Highlights

  • H1 FY27 Revenue: ₹1,329 Cr.
  • H1 FY27 EBITDA: ₹381 Cr.
  • H1 FY27 EBITDA Margin: 28.7%.
  • ROCE: 32% (annualised, adjusted for a revaluation reserve of ₹764 Cr).
  • Capex: ₹27 Cr for H1 FY27.

YoY/QoQ comparison: H1 FY27 revenue growth is 25% over the previous period. The H1 EBITDA margin of 28.7% is significantly higher than the FY26 full-year margin of 23.6%.

Drivers of financial performance: Strength of the business model, favourable product mix, continued operational efficiencies, and an enhanced focus on niche products.

Comparison to market estimates: Not Specified.

Key Risks: Not Specified.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified.

Balance Sheet Snapshot

  • Liquidity Surplus: ₹933 Cr (as of September 30, 2026).
  • Net Debt: Zero (Net Zero debt).

Financial Health Insights: The company has healthy cash flows and a net zero debt position.

Capex & Cash Flow Health

  • Capital Expenditure: ~₹170 Cr planned for FY27.
  • H1 FY27 Capex: ₹27 Cr.

Investment Rationale: The capex is focused on strategic initiatives, including a new TPU line and capacity additions.

Strategic & R&D Initiatives

  • A strategic technology partnership with Lubrizol involves a ₹118 Cr investment in a TPU extrusion platform. It is expected to provide 75% backward integration for premium PPF and improve consolidated EBITDA margins by 150-200 basis points.
  • The company is entering the PDLC Films market for smart architecture, offering a retrofit-led smart privacy solution.
  • R&D initiatives include proprietary nano-dispersion technology for NIR blocking films and GARNEST software for pre-cut PPF patterns.

Expected impact on growth: The TPU line is expected to become operational in Q3 FY27 and support the next phase of growth.

Strategic Rationale: To address emerging market opportunities, build new capabilities, and support sustainable growth.

Industry Trends & Business Environment

Macro/Industry Trends: Not Specified.

Impact on Company: Not Specified.

Management Commentary & Growth Outlook

Strategic Outlook: Management remains focused on sustainable growth and creating long-term value.

FY Guidance: Revenue target for FY27 is reaffirmed at over ₹2,500 Cr. The EBITDA margin guidance is updated to 27% ±2% from a previous range of 23%-27%.

Medium-term Commitments (FY28-31): Targeting ~20% revenue CAGR and an EBITDA margin of greater than 27%.

Risks and Opportunities: Not Specified.

ESG Updates

  • The company is GreenPro certified by IGBC (CII) for its architectural films.
  • It produces PCR grade and APR certified Shrink Films.
  • CSR initiatives focus on healthcare, wellness, environment, and community support, aligned with UN SDG #13 (Climate Action).