EL7.AI
StocksMedium•25 October 2026•
4 min read

Garware Hi-Tech raises target profit margin to 27% after quarterly EBITDA grows 42%

Key Facts

1Consolidated EBITDA rose 42% to INR 189 crore in the second quarter, with a margin of 27.2% versus 23.4%.
2First-half revenue was INR 1,329 crore, up 25%, and the EBITDA margin reached 28.7%.
3The company raised fiscal 2027 EBITDA margin guidance by 200 basis points to 27% ±2% and reaffirmed its revenue target of more than INR 2,500 crore.
4Cash and cash equivalents totaled INR 933 crore on September 30, 2026.
5The stock closed at INR 7,034, up 5.62%, on October 23, 2026.

Garware Hi-Tech Films announced on October 22 its unaudited results for the quarter and half year ended September 30, 2026, reporting 42% year-on-year growth in consolidated EBITDA to INR 189 crore in the second quarter of fiscal 2027. The EBITDA margin rose to 27.2% from 23.4% in the year-earlier period, an increase of 377 basis points. The company said operating leverage and a favorable product mix contributed to the margin improvement despite higher raw material and logistics costs. The results come as the company continues to target annual revenue growth, reaffirming its goal of more than INR 2,500 crore for fiscal 2027. It also raised its fiscal-year EBITDA margin guidance by 200 basis points to 27% ±2%.

Consolidated revenue from operations was INR 696 crore in the quarter, compared with INR 570 crore a year earlier, an annual increase of 22%, and INR 633 crore in the previous quarter, up 10% sequentially. For the first half, revenue reached INR 1,329 crore, up 25% from INR 1,065 crore in the year-earlier period. First-half EBITDA was INR 381 crore, up 49% from INR 256 crore a year earlier. The first-half EBITDA margin was 28.7%, compared with 24.1% in the first half of fiscal 2026. The margin achieved in the first six months puts the company above the midpoint of 27% in its new full-year guidance range, while the guidance remains a target for the year rather than a final result.

The company attributed profit growth to strong demand and improved collections across product segments, saying these supported revenue despite a slowdown in activity in the Middle East amid the ongoing conflict. It said the margin improvement resulted from operating leverage and a more favorable product mix. According to its statement, these two factors helped offset higher raw material and logistics costs. In the second quarter, consolidated profit after tax rose 42% to INR 129 crore. The profit-after-tax margin also widened to 18.6% from 16.0% in the corresponding period of the previous fiscal year. The company said performance reflected "strong demand and improved collections across product segments," despite the regional slowdown it cited.

The group operates in one reportable segment, polyester films, and the consolidated results include the parent company and subsidiaries specified in the filing. Consolidated revenue from operations in fiscal 2026 was about INR 2,120.11 crore, the annual comparison base that puts the target of more than INR 2,500 crore for fiscal 2027 above the prior year's level. The company reported cash and cash equivalents of INR 933 crore as of September 30, 2026. During the quarter, it opened two new global application studios in the United States, taking its global network to 14 studios. The network gives the company a broader applications presence in its markets, while the disclosure does not specify a separate financial impact from the openings.

On production capacity, the company said commissioning of the TPU line remains targeted for the third quarter of fiscal 2027. It also expects commercial production at the SCF line to begin in the first half of fiscal 2028. The announced investment for the line is INR 191 crore, with additional capacity of about 1,200 LSF. The company described it as equipped with advanced robotics and automation, while the cited commissioning dates remain targets and were not reported in the disclosure as completed milestones. On October 23, the company said it had uploaded the audio recording of its quarterly and first-half results call for investors, and did not announce a date for its next results in that source.

The stock moved in the first trading session after the results announcement, closing at INR 7,034 on October 23, up 5.62%, according to ET Money data. The session followed the October 22 results announcement, which showed growth in quarterly revenue and profit and improved margins, alongside an increase in fiscal-year margin guidance. The disclosure does not explain the share-price move or attribute it to a specific factor. The company made the audio recording of the results call available to investors on the same day. The next operational milestone identified by the company is the targeted commissioning of the TPU line in the third quarter of fiscal 2027, followed by expected commercial production at the SCF line in the first half of fiscal 2028.