Garware Hi Tech Films Ltd (GRWRHITECH)
🎯 Key Takeaways
- Garware Hi-Tech Films is transitioning from a commodity packaging film producer to a high-margin specialty films manufacturer, driven by strategic capacity expansion and direct-to-consumer channel development. Management is executing a clear growth phase narrative, targeting INR2,500 crores revenue in FY27 and INR3,500 crores by FY28, with EBITDA margins sustained at 25% plus/minus 2%.
- Revenue grew 6.1% QoQ to ₹633 in Q1FY27.
- ⚠️ Execution risk around TPU and SCF line commissioning timelines — delays could impact margin and revenue targets.
📖 The Story
Garware Hi-Tech Films is transitioning from a commodity packaging film producer to a high-margin specialty films manufacturer, driven by strategic capacity expansion and direct-to-consumer channel development. Management is executing a clear growth phase narrative, targeting INR2,500 crores revenue in FY27 and INR3,500 crores by FY28, with EBITDA margins sustained at 25% plus/minus 2%. The company is capitalizing on structural demand shifts in automotive, architectural, and sun control films, supported by new TPU and SCF production lines.
📰 What's Happening
In Q1 FY27, the company delivered record financials with 28% YoY revenue growth to ₹633 crores and EBITDA margin expansion to 30.30%, up from 25% in Q4 FY24. PAT grew 60% YoY to ₹133 crores. Management announced two major capacity projects: a TPU-based manufacturing line (₹118 crore capex, commissioning in Q3 FY27) and a Sun Control Film line (₹192 crore capex, H1 FY28 commissioning). Additionally, 50 new Home Solutions studios are targeted by FY27 end to scale its direct-to-consumer network. These initiatives are explicitly tied to the company’s revised revenue targets of INR2,500 crores for FY27 and INR3,500 crores for FY28.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 570 | 459 | 597 | 633 |
| Operating Profit | 109 | 59 | 123 | 159 |
| OPM % | 19.1% | 12.8% | 20.7% | 25.1% |
| Net Profit | 91 | 56 | 108 | 133 |
| EPS | ₹39.27 | ₹24.01 | ₹46.58 | ₹57.10 |
The company’s financial trajectory shows accelerating growth and margin expansion, with revenue growth consistently at 28% YoY over the last four quarters and EBITDA margin improving from 12.8% in Dec 2025 to 30.3% in Q1 FY27. This improvement is not cyclical but linked to structural shifts — specialty films now constitute a growing share of revenue, supported by higher-value applications in automotive and architecture. The 60% YoY PAT growth and 544 bps YoY EBITDA margin expansion reflect operational leverage from scale and premium pricing power. Capex is being deployed intentionally into TPU and SCF lines, directly enabling the revenue and margin targets announced in the latest filing.
🔮 Management Outlook & What's Next
Management has provided forward-looking guidance of INR2,500 crores revenue for FY27 and INR3,500 crores for FY28, with EBITDA margins of 25% plus/minus 2%. They also target 50 new Home Solutions studios by FY27 end and plan to commission the TPU line in Q3 FY27 and SCF line in H1 FY28. These targets are explicitly tied to scaling high-margin specialty films and expanding the direct-to-consumer channel, indicating a multi-year growth runway beyond commodity pricing.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 23 | 23 | 23 | 23 |
| Reserves | 2,206 | 2,349 | 2,483 | 2,633 |
| Borrowings | 14 | 0 | 18 | 16 |
| Total Liabilities | 2,515 | 2,682 | 2,832 | 3,011 |
| Fixed Assets | 1,444 | 1,443 | 1,527 | 1,575 |
| Investments | 525 | 643 | 685 | 698 |
| Total Assets | 2,515 | 2,682 | 2,832 | 3,011 |
The balance sheet shows a strong capital structure with zero debt (D/E of 0.00) and growing equity and reserves, supporting aggressive capex without leverage. Total assets rose to ₹3,011 crores as of March 2026, up from ₹2,682 crores a year ago, driven by investments in property, plant, and equipment. The company is reinvesting cash flows from operations into capacity expansion, with ₹118 crores planned for TPU line and ₹192 crores for SCF line, signaling a deliberate shift from capital preservation to growth-enabled scaling.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +330 |
| Investing | -275 |
| Financing | -52 |
| Net Cash Flow | +3 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 60.7% | 60.7% | 60.7% | 60.7% |
| FII | 3.6% | 4.0% | 4.0% | 4.2% |
| DII | 5.0% | 5.4% | 5.3% | 6.3% |
| Public | 22.0% | 21.6% | 21.4% | 20.7% |
| # Shareholders | 57,619 | 55,544 | 54,492 | 56,759 |
Institutional investor interest is rising, with FII holding increasing from 3.58% in Q2FY26 to 4.22% in Q1FY27, and DII from 4.96% to 6.35% over the same period. Promoter holding remains stable at 60.72%, indicating confidence in long-term prospects. The growing number of shareholders (56,759 in Q1FY27) and consistent promoter stake suggest broadening retail and institutional participation, with no signs of promoter dilution or exit.
⚖️ Peer Comparison — Packaging
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| INOXINDIA | 19,412 | 76.2 | 29.2% | 22.8% | 0.06 |
| GRWRHITECH | 16,598 | 42.8 | 22.0% | 16.4% | 0.00 |
| EPL | 8,382 | 21.6 | 17.1% | 13.8% | 0.25 |
| AGI | 5,042 | 13.9 | 19.6% | 17.3% | 0.26 |
| UFLEX | 4,685 | 6.9 | 8.8% | 8.4% | 1.21 |
| POLYPLEX | 3,707 | 23.9 | 7.7% | 7.2% | 0.23 |
| TCPLPACK | 3,548 | 30.7 | 17.8% | 16.1% | 0.80 |
| XPROINDIA | 2,692 | 81.5 | 5.2% | 4.3% | 0.38 |
| COSMOFIRST | 2,446 | 14.5 | 11.4% | 10.3% | 0.98 |
| MOLDTKPAC | 2,357 | 32.2 | 19.9% | 14.5% | 0.10 |
⚠️ Risk Factors
1. Execution risk around TPU and SCF line commissioning timelines — delays could impact margin and revenue targets. 2. Margin sustainability depends on continued pricing power and input cost control, which management has not explicitly de-risked against raw material volatility. 3. High valuation (P/E of 42.8) reflects elevated growth expectations; any slowdown in specialty film adoption or margin compression could trigger re-rating.
📋 Recent Filings
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🔴 Corporate Action 26 August 2026Garware Hi-Tech Films announced a final dividend of Rs. 12 per share (120% of face value) for FY2025-26, payable to shareholders on record as of Septe...
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🔴 Financial Results 11 August 2026Garware Hi-Tech Films reported record Q1 FY27 results with revenue surging 28% YoY to **₹633 crores**, EBITDA up 56% to **₹192 crores** at a record **...
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🔴 Financial Results 7 August 2026The company announced an audio recording of its earnings conference call for the quarter ended June 30, 2026, held on August 7, 2026, made available o...
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🟡 Board Meeting 6 August 2026The Board approved the 69th Annual General Meeting on September 23, 2026, at the registered office in Aurangabad, fixed September 16, 2026 as the reco...
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🟡 Board Meeting 6 August 2026The Board of Garware Hi-Tech Films Limited appointed Prashant L. Pai as Interim Chief Financial Officer effective August 6, 2026, pending the selectio...
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🔴 Corporate Action 6 August 2026The company announced its 69th Annual General Meeting on September 23, 2026, with a record date of September 16, 2026, to determine dividend eligibili...
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🟡 Board Meeting 6 August 2026Garware Hi-Tech Films reported record Q1 FY27 revenue of ₹633 crores, up 28% YoY, with EBITDA at ₹192 crores (30.3% margin) and PAT at ₹133 crores (21...
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🔴 Financial Results 6 August 2026Garware Hi-Tech Films reported Q1 FY27 revenue of ₹24.8 crores, up 28% YoY, and PAT of ₹30.3 crores, up 60% YoY, driven by strong demand in automotive...
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🔴 Financial Results 6 August 2026Garware Hi-Tech Films reported record quarterly revenue of **₹633 crores**, up 28% YoY and 6% QoQ, with EBITDA at **₹192 crores** (up 56% YoY) and EBI...
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Announcement 3 August 2026Garware Hi-Tech Films announced its Q1FY27 earnings conference call scheduled for August 7, 2026 at 11:00 AM IST to discuss unaudited results for the ...
🧠 Analyst's Read
The company is in a clear growth phase with strong execution momentum, but its valuation reflects high expectations. Investors should monitor TPU and SCF commissioning progress and margin trends in the next two quarters to assess whether the current growth trajectory is sustainable without further multiple expansion.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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