Garware Hi-Tech Films Limited has reported a code of conduct violation under SEBI (Prohibition of Insider Trading) Regulations, 2015, involving the immediate relative of a connected person. The company submitted the violation report to BSE and NSE on February 04, 2026, as required under regulatory compliance.

Violation Details

The violation involved Mrs. Komal Jagdish Vishwakarma, who is the immediate relative of Mr. V Sasidharan, a former employee who ceased employment with the company effective October 04, 2025. Mrs. Vishwakarma executed contra trades in the company's shares without proper authorization.

Transaction Summary

The unauthorized trading activity occurred over multiple dates in 2025, involving both purchase and sale transactions:

The company noted that transaction details were not provided by the connected person, and weekly closing prices were used for computation purposes.

Regulatory Action and Penalty

The matter was reviewed by the company's audit committee during its meeting held on January 31, 2026. Following the review, the committee imposed a penalty of Rs. 10,000 on Mrs. Vishwakarma for the code of conduct violation.

Company's Assessment

The company confirmed that the connected person acknowledged the default was inadvertent and stated in writing that the trades were not based on access to or use of any Unpublished Price Sensitive Information (UPSI). The violation was classified as an execution of contra trade by an immediate relative of a connected person, warranting the penalty under insider trading regulations.

This represents the first reported instance of such violations for the company since the last financial year, with no previous violations on record. The penalty amount has been successfully transferred to SEBI's Investor Protection and Education Fund as required under regulatory guidelines.

Garware Hi-Tech Films Limited announced its Q3FY26 quarterly results for the quarter and nine months ended December 31, 2025, following a Board of Directors meeting held on January 31, 2026. The company reported mixed performance with revenue decline and margin pressures across key financial metrics, while maintaining resilient fundamentals amid global trade volatility.

Q3FY26 Financial Performance

The company's consolidated financial results for Q3FY26 show revenue from operations at ₹458.7 crores compared to ₹466.4 crores in Q3FY25, representing a decline of 1.6%. EBITDA for the quarter stood at ₹86.7 crores versus ₹93.7 crores in the corresponding quarter of the previous year, marking a 7.4% decrease. The company also reported a quarter-on-quarter decline of 19.5% from Q2FY26's ₹569.7 crores, reflecting seasonal impact from the historically strong Q2 base.

Nine Months Performance

For the nine months ended December 31, 2025, consolidated revenue from operations reached ₹1,523.4 crores compared to ₹1,561.4 crores in the corresponding period of FY25, showing a decline of 2.4%. EBITDA for 9MFY26 was ₹343.0 crores against ₹374.1 crores in 9MFY25, down by 8.3%, with EBITDA margin at 22.5% versus 24.0% in the previous year.

Management Commentary

Dr. S.B. Garware, Chairman and Managing Director, commented on the results stating that global trade conditions continue to evolve amid tariff recalibrations and geopolitical realignments. He emphasized the company's focus on long-term value creation through disciplined execution and strategic clarity, building a resilient, innovation-led organization capable of adapting to global transitions.

Ms. Monika Garware, Vice Chairperson and Joint Managing Director, noted that despite tariff-related impacts, revenues remained largely stable. She highlighted the company's continued progress in strategic initiatives and focus on disciplined execution and prudent risk management for sustainable, long-term growth.

Strategic Growth Initiatives

Despite margin pressures, Garware Hi-Tech Films continues to advance several key strategic developments. The company announced plans to establish a wholly owned subsidiary in UAE to strengthen export footprint across the MENA region and other international markets. Additionally, the company launched Garware Home Solutions, a high-margin D2C business to strengthen domestic presence in architectural films, with the first studio opened in Mumbai.

The company filed the results under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with both BSE (Scrip Code: 500655) and NSE (Trading Symbol: GRWRHITECH).