Garware Hi-Tech Films reported a robust 42% YoY jump in Q2 FY27 net profit to Rs 129.44 crore, fueled by a 22% rise in revenue. The company also raised its EBITDA margin guidance to 27% and expanded its strategic footprint with a new Lubrizol partnership and entry into smart architecture films.
Garware Hi-Tech Films Q2 Profit Jumps 42% To Rs 129 Crore
Revenue grew 22% to Rs 695.53 crore; EBITDA margins expanded to 27.2%.
Reader Takeaway: Strong margin expansion and new capacity pipelines signal growth, though geopolitical tensions in the Middle East persist.
What just happened
Garware Hi-Tech Films Ltd announced a strong performance for the second quarter of FY27, with net profit surging 42% YoY to Rs 129.44 crore. Revenue from operations climbed 22% to Rs 695.53 crore compared to the same period last year. For the half-year ending September 30, 2026, the company recorded a profit of Rs 262.09 crore on revenue of Rs 1,328.61 crore.
Why this matters
The company’s operational efficiency is highlighted by an EBITDA margin expansion to 27.2%, up from 23.4% in Q2 FY26. Bolstered by this performance, management has raised its FY27 EBITDA margin guidance to 27% ± 2% and reaffirmed a revenue target exceeding Rs 2,500 crore.
Operational Highlights
Strategic momentum remains high with the company signing an MoU with Lubrizol to advance its Paint Protection Film (PPF) segment. Execution of the new TPU line remains on track for Q3 FY27, with commercial production slated for H1 FY28. Additionally, the company is diversifying into smart architecture with new switchable privacy film (PDLC) solutions.
Risks to watch
Shareholders should monitor execution risks regarding the TPU line ramp-up. Furthermore, management noted that regional conflicts in the Middle East continue to pose demand-side headwinds, necessitating ongoing oversight of international market stability.
What to track next
The firm’s expansion of Garware Home Solutions (GHS) studios is a key growth lever. With 14 studios currently operational, the company aims to reach 50 by December 2027, adding 12 more in the upcoming quarter.