Garware Hi Tech Q2 FY27 Results (NSE: GRWRHITECH)
Signal: Margin expansion
The read
The trajectory has re-accelerated after the Q1-Q3 FY26 margin contraction: Q2FY27 revenue rose 22.1% YoY to ₹695.53 crore and EBITDA margin expanded 377bps YoY to 27.2%, driven by favourable product mix and operating leverage, although the 311bps QoQ margin decline from 30.3% shows the prior-quarter peak is not yet the new run-rate.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹695.53 Cr | +22.1% | +9.9% |
| Net profit | ₹129.44 Cr | +41.9% | |
| EPS | ₹55.71 | +41.9% | |
| EBIT margin | 27.2% |
P&L walk
Revenue increased to ₹695.53 crore, +22.1% YoY and +9.9% QoQ, while EBITDA rose 42% YoY to ₹189 crore and margin expanded 377bps YoY to 27.2%; PAT rose 41.9% to ₹129.44 crore, with the sequential margin decline from 30.3% reflecting normalisation after the prior quarter peak.
Key positives
- Revenue reached a record ₹695.53 crore, +22.1% YoY and +9.9% QoQ, with management citing robust demand and improved realisations.
- EBITDA rose 42% YoY to ₹189 crore and margin expanded 377bps YoY to 27.2%, supported by favourable product mix and operating leverage.
- Employee plus other operating expenses grew 13.5% YoY versus 22.1% revenue growth, supporting the margin expansion.
- H1FY27 EBITDA margin was 28.7%, up 459bps YoY, and operating cash flow increased 19.8% YoY to ₹195.34 crore.
- TPU commissioning remains on track for Q3FY27 and the ₹191 crore SCF line is expected to add approximately 1,200 LSF of capacity in H1FY28.
Key concerns
- Q2 EBITDA margin of 27.2% declined 311bps QoQ from 30.3%, indicating sequential normalisation after the prior-quarter peak.
- The Middle East slowdown amid the ongoing conflict is a disclosed demand headwind, although Q2 revenue still grew 22.1% YoY.
- Higher raw-material and logistics costs were partly absorbed and required favourable product mix and operating leverage to sustain the 27.2% EBITDA margin.
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