Garware Tech. Q1 FY27 Results (NSE: GARFIBRES)
Signal: Margin expansion
The read
The key inflection is revenue growth reaccelerating to 31.35% YoY from 9.2% in Q1FY26, but EBITDA margin at 20.5% remains below 22.1% in the immediately preceding quarter; PAT rose 21.68% to ₹6460 lakh, so the growth recovery has not yet translated proportionately into profit growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹482.37 Cr | +31.35% | +13.11% |
| EBIT | ₹89.69 Cr | N/A | |
| Net profit | ₹64.6 Cr | +21.68% | |
| EPS | ₹6.56 | +22.6% | |
| EBIT margin | 20.5% |
P&L walk
Consolidated revenue rose to ₹48237.27 lakh, +31.35% YoY and +13.11% QoQ, while EBITDA reached ₹9902 lakh and margin was 20.5%, below the prior quarter; EBIT was ₹8969 lakh and PAT ₹6460 lakh, with other income of ₹893 lakh remaining non-material at below 20% of PBT.
Segments
Consolidated PAT of ₹6460 lakh exceeded standalone PAT of ₹4899 lakh by ₹1561 lakh, while consolidated EBITDA margin of 20.5% exceeded standalone margin of 18.9%, indicating that subsidiaries and associates lifted group earnings and margins.
Key positives
- Consolidated revenue reached ₹48237.27 lakh, up 31.35% YoY and 13.11% QoQ, a clear acceleration from 9.2% YoY growth in Q1FY26.
- EBITDA increased to ₹9902 lakh and EBITDA margin improved to 20.5% from approximately 19.0% in the year-ago quarter, despite the sequential decline from 22.1%.
- Consolidated PAT of ₹6460 lakh was ₹1561 lakh above standalone PAT of ₹4899 lakh, showing positive contribution from subsidiaries and associates.
- EPS of ₹6.56 grew approximately 22.6% YoY, broadly tracking PAT growth and indicating no material dilution signal.
Key concerns
- PAT growth of 21.68% lagged revenue growth of 31.35%, indicating weaker earnings conversion than the top-line recovery.
- EBITDA margin declined approximately 160bps sequentially to 20.5% from 22.1%, so the margin recovery remains uneven after 14.0% in Q2FY26 and 18.0% in Q3FY26.
- The filing does not disclose volume, realisation, product-mix, capacity-utilisation or raw-material-cost data, limiting attribution of the revenue and margin trajectory.
Research and educational content only. Not investment advice.