🚨 Garware Hi-Tech Films Q1 FY26
📊 Revenue ₹495 Cr
( 4.3% YoY; missed ₹550 Cr est. due to tariffs & early monsoon)
💰 PAT ₹83 Cr (vs ₹88 Cr YoY)
📉 EBITDA ₹123 Cr; margin 24.8% (vs 27.4%)
✅ Debt-free, ₹700 Cr cash
🌍 Segment performance:
🚗 PPF 28% YoY
(domestic exports; 20–23% share in India, expanding via 250 studios → target 300 by FY26)
☀️ SunControl Films -7% YoY
(auto slowdown, weak demand in developed mkts)
📦 Shrink Films -29% YoY
(early rains, beverage demand hit)
🏭 Industrial Products -3% YoY
🌐 Geographies:
US ~45% revenue; facing tariff hikes
(6.25% → 16.25% → 25%)
India 27.5% revenue
Europe ~12–13% (growing ~20%)
Middle East ~3–5% (growing 30–40%)
Asia ex-India ~12–13% (Japan negligible)
Exports = 72.5% of revenue
⚠️ Risks:
Tariffs may cut ₹100 Cr from bottom line (absorbed so far via supply chain & cost efficiencies)
Seasonal demand disruptions (early monsoon)
📈 Growth drivers:
2nd PPF line & new TPU plant coming up
Premium PPF & SunControl range via franchisee studios
(10–15% higher margins)
Strong global presence & brand loyalty
(esp. in auto aftermarket & architectural films)
🌟Management outlook:
FY26 will be tough (tariffs, geopolitics),
Diversification New Capacity Middle East/Europe growth should offset,