Garware Hi Tech Q1 FY27 Results (NSE: GRWRHITECH)
Signal: Margin expansion
The read
The key inflection is a return to margin expansion: consolidated EBITDA margin rose to 30.3% from 24.8% YoY and 26.2% QoQ after contracting to 18.9% in Q2FY26 and 18.1% in Q3FY26; revenue also accelerated to +27.9% YoY from +4.4% in Q1FY26, suggesting the specialty-film mix and demand recovery are currently outweighing the prior slowdown.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹633.08 Cr | +27.9% | +6.0% |
| EBIT | ₹178.91 Cr | N/A | |
| Net profit | ₹132.65 Cr | +59.8% | |
| EPS | ₹57.1 | +59.8% | |
| EBIT margin | 30.3% |
P&L walk
Consolidated revenue increased to ₹633.08 Cr, +27.9% YoY and +6.0% QoQ, while EBITDA rose to ₹191.72 Cr and margin expanded to 30.3% from 24.8% YoY; PAT grew to ₹132.65 Cr, +59.8% YoY, supported by better product mix and healthy demand stated by management.
Segments
The Consumer Product Division contributes 74% of revenue versus 26% for the Industrial Product Division, while 87% of revenue is from value-added products; segment-level revenue and result comparatives are not disclosed, so the filing supports a mix-led rather than division-profit attribution.
Key positives
- Revenue reached ₹633.08 Cr, up 27.9% YoY and 6.0% QoQ, reversing the low-growth 4.4% YoY trajectory in Q1FY26.
- EBITDA margin expanded to 30.3%, up 550bps YoY and 410bps QoQ, above the stated FY27-and-beyond target range of 23-27%.
- PAT rose 59.8% YoY to ₹132.65 Cr and EPS rose 59.8% to ₹57.10, with the PAT-to-EPS cross-check clean.
- Value-added products represented 87% of revenue and the Consumer Product Division represented 74%, supporting the stated premiumisation and mix-led strategy.
- The company reported ₹774 Cr of liquidity surplus and net zero debt as of FY26, while progressing toward ₹118 Cr TPU and ₹192 Cr SCF capacity investments.
Key concerns
- The 30.3% EBITDA margin is materially above the stated 23-27% long-term target range, so sustainability of the Q1 peak requires confirmation in subsequent quarters.
- The filing does not disclose product-level volumes, realisations or segment profitability, limiting the ability to separate volume growth from price/mix effects.
- Planned capex of ₹118 Cr for the TPU line in Q3 FY27 and ₹192 Cr for the SCF line in H1 FY28 creates execution and utilisation risk despite the current net-cash position.
Research and educational content only. Not investment advice.