Garware Hi-Tech Films lifts operating margin to 28.45% in Q1
Revenue grew 29.05% year on year, with management pointing to product mix and demand across domestic and international markets.
Filed 06 Aug 2026, 12:46 IST · Garware Hi Tech Films Ltd (GRWRHITECH)
Key takeaways
- Standalone operating margin widened 7.11 percentage points year on year to 28.45% as revenue grew faster than expenses.
- Standalone net profit rose 69.70% year on year, while other income contributed 9.52% of profit before tax.
- Operating margin recovered from 14.65% in Q3FY26 to 28.45% in Q1FY27, its second straight quarterly increase.
Price around the results
Revenue growth translated into a larger operating gain
Standalone revenue grew 29.05% year on year and 9.79% sequentially, while expenses rose 17.40% and 2.33%, respectively. The wider gap between revenue and costs lifted operating profit 72.01% year on year and 34.41% sequentially. Management said demand across key product categories, a better product mix and its domestic and international presence supported the quarter.
Margin recovery continued, with limited tax benefit
Operating margin expanded 7.11 percentage points year on year and 5.22 percentage points sequentially because expenses grew more slowly than revenue. The tax rate was almost unchanged year on year, declining 0.02 percentage points, so the 69.70% rise in net profit was not driven by a lower tax rate. Other income accounted for 9.52% of profit before tax, making it a meaningful but not dominant contributor to earnings.
Q1 margin moved above the Industrials peer median
Garware Hi-Tech Films' 28.45% operating margin was 14.26 percentage points above the 14.19% median for 54 Industrials peers that had reported the quarter. The quarterly trend also improved: margin rose from 14.65% in Q3FY26 to 23.23% in Q4FY26 and 28.45% in Q1FY27. This places the current margin well above the 21.34% recorded in Q1FY26.
Management outlines applications and capacity as the next focus
Management said its FY27 priorities are to widen product applications, reach more customers and strengthen its global position in specialised films. It also said groundwork had progressed for a new Sun Control Film line, intended to expand capacity and serve more applications and markets. The presentation indicates a 15%-20% revenue CAGR, a 23%-27% EBITDA margin, export share above 70% and value-added specialty films contribution above 85% for the next growth leg.
Past result-day moves have usually been positive
A current market reaction is not yet available. After its last eight results, the stock rose seven times and fell once, with a median absolute move of 8.12%; the recorded moves ranged from -10.36% to +12.66%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹584 cr | ₹532 cr | +9.79% | +29.05% |
| Other income | ₹16 cr | ₹23 cr | -29.02% | +13.48% |
| Expenses | ₹418 cr | ₹408 cr | +2.33% | +17.40% |
| Operating profit | ₹166 cr | ₹124 cr | +34.41% | +72.01% |
| Operating margin (%) | 28.45% | 23.23% | — | — |
| Interest | ₹2 cr | ₹2 cr | -0.66% | +17.05% |
| Depreciation | ₹13 cr | ₹12 cr | +6.93% | +21.36% |
| Profit before tax | ₹168 cr | ₹133 cr | +26.48% | +69.66% |
| Tax | ₹42 cr | ₹33 cr | +26.70% | +69.54% |
| Net profit | ₹127 cr | ₹100 cr | +26.40% | +69.70% |
| EPS (₹) | ₹54.49 | ₹43.10 | +26.43% | +69.70% |
Operating margin of 28.45% compares with a Industrials sector median of 14.19% across 54 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Healthy demand across key product categories, a better product mix and domestic and international presence supported the quarter.
- During the quarter, the company continued taking products closer to customers through its application studios and Garware Home Solutions.
Guidance & outlook
- As FY27 begins, the company prioritises expanding product applications, reaching more customers and strengthening its global position in specialised films.
- The company indicates a 15–20% revenue CAGR and a 23–27% EBITDA margin for its next growth leg.
- The company indicates an export share above 70% and value-added specialty films contribution above 85%.
Expansion
- The company progressed groundwork for a new Sun Control Film line to expand capacity and address more applications and markets.
New products
- Product launches listed include graphene coating, sunroof heatshield, graphic films, ceramic coating and printable PPF.
Competition
- The economy segment is mainly dominated by Chinese and Korean players.
Problems & risks
- The company says performance occurred despite continued geopolitical uncertainty, global trade volatility and a challenging operating environment.
What to watch
- Whether standalone operating margin holds above 28.45% after its Q1FY27 recovery.
- Whether revenue growth remains ahead of expense growth, which was 29.05% versus 17.40% year on year.
- Progress on the new Sun Control Film line and the stated export-share threshold above 70%.