Garware Hi-Tech Films Limited , a leading manufacturer of specialty polyester films, has reported mixed financial results for the second quarter of fiscal year 2026 (Q2 FY26), showing resilience amid challenging market conditions.

Revenue and Profitability

The company's consolidated revenue from operations decreased by 8.2% year-over-year to ₹569.69 crore in Q2 FY26, compared to ₹620.58 crore in Q2 FY25. However, on a sequential basis, revenue grew by 15.1% from ₹494.99 crore in Q1 FY26.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 FY26 stood at ₹133.30 crore, down 11.4% from ₹150.50 crore in the same quarter last year. The EBITDA margin contracted by 85 basis points to 23.4% compared to 24.2% in Q2 FY25.

Profit before tax (PBT) declined by 12.8% year-over-year to ₹120.40 crore, while profit after tax (PAT) decreased by 12.5% to ₹91.20 crore in Q2 FY26. The PAT margin stood at 16.0%, down 80 basis points from 16.8% in the corresponding quarter of the previous year.

Half-Year Performance

For the first half of FY26 (H1 FY26), Garware Hi-Tech Films reported:

Operational Highlights

Despite the challenging business environment, Garware Hi-Tech Films maintained its focus on value-added products (VAP), which contributed 87% to the company's revenue. The company's strategic initiatives include:

1. Expanding its Paint Protection Films (PPF) network in Tier 1 and Tier 2 cities, with over 250 Garware Application Studios (GAS) across India.
2. Launching an e-portal for direct-to-consumer (D2C) PPF sales in the USA market.
3. Entering the D2C residential market with 'Garware Home Solutions' to capture high-growth consumer opportunities.
4. Achieving GreenPro certification from the Confederation of Indian Industry (CII) and Indian Green Building Council (IGBC) for its architectural films segment.

Financial Position

As of September 30, 2025, Garware Hi-Tech Films maintained a strong balance sheet with a liquidity surplus of ₹697.00 crore. The company's working capital days stood at 37, reflecting efficient management of its operational cycle.

Management Commentary

While specific management comments were not provided, the company's investor presentation highlighted its resilient performance despite the challenging business environment. Garware Hi-Tech Films continues to focus on sustainable margins for specialty films and improving its overall financial health.

Outlook

Garware Hi-Tech Films aims to drive growth through its value-added specialty films business. The company has outlined several focus areas for future growth, including:

1. Sun Control Films
2. Paint Protection Films (Architectural and Automotive)
3. Industrial Products Division
4. Garware Home Solutions
5. TPU Products

The company projects a revenue CAGR of 15-20% and maintains its focus on exports, which currently account for over 77% of its revenue.

Garware Hi-Tech Films Limited , a leading manufacturer of specialty films, has announced the commencement of production at its new Paint Protection Film (PPF) manufacturing line in Waluj, Maharashtra. This strategic expansion marks a significant milestone for the company in its pursuit of growth and innovation in the specialty films segment.

Investment and Capacity

The new PPF manufacturing line represents an investment of ₹125.00 crores, demonstrating Garware Hi-Tech Films' commitment to expanding its production capabilities. With an annual production capacity of 300 LSF (Linear Square Feet), this facility is poised to meet the growing demand for high-quality paint protection films in both domestic and international markets.

Strategic Location

Situated in Waluj, Chhatrapati Sambhaji Nagar (formerly Aurangabad), Maharashtra, the new manufacturing line is strategically positioned to leverage the region's industrial infrastructure and skilled workforce. This location aligns with the company's vision of 'Made in India for the World,' supporting its global market presence.

Timely Execution

According to the company's LODR (Listing Obligations and Disclosure Requirements) filing, the new PPF line commenced commercial production on September 24, 2025, in line with the scheduled plan. This timely execution reflects Garware Hi-Tech Films' operational efficiency and project management capabilities.

Market Implications

The addition of this new PPF manufacturing line is expected to strengthen Garware Hi-Tech Films' position in the automotive and surface protection markets. Paint Protection Films are increasingly in demand, particularly in the premium automotive sector, including the rapidly expanding electric vehicle segment.

Company's Growth Trajectory

This expansion aligns with Garware Hi-Tech Films' broader strategy of innovation and capacity enhancement. In her address at the company's 68th Annual General Meeting, Vice Chairperson and Joint Managing Director Monika Garware highlighted the company's focus on backward integration and product innovation as key drivers of growth.

Financial Performance

The company has reported strong financial results, with consolidated revenue increasing by 26% to ₹2,109.00 crores and profit after tax soaring by 63% to ₹331.00 crores in the previous fiscal year. This robust financial performance has enabled the company to invest in capacity expansion while maintaining a net debt-free status.

Future Outlook

With the new PPF line operational, Garware Hi-Tech Films is well-positioned to capitalize on the growing demand for surface protection solutions. The company's continued focus on innovation, supported by its strong intellectual property portfolio of over 168 registered trademarks globally and ten patents, suggests a promising outlook for future growth and market leadership in the specialty films industry.

As Garware Hi-Tech Films continues to expand its manufacturing capabilities, the company remains committed to sustainable practices and delivering value to its shareholders, as evidenced by its increased dividend payout of 120% of par value for the year.