Garware earnings for the second quarter of fiscal 2027 included record revenue of ₹696 crore, up 22% from a year earlier. The films manufacturer also raised its full-year EBITDA margin guidance by two percentage points to 27%, plus or minus two percentage points.
Key Takeaways
- Quarterly profit after tax rose 42% year over year to ₹129 crore.
- Garware maintained its FY27 revenue target of more than ₹2,500 crore.
- One customer accounted for 30% of revenue, while inventory days increased.
Garware earnings and quarterly margins
EBITDA rose 42% year over year to ₹189 crore, with the margin reaching 27.2%, an increase of 377 basis points. Revenue was also 10% higher than in the preceding quarter.
For the first half of FY27, profit after tax increased 50% year over year to ₹262 crore. Value-added products contributed 86% of quarterly revenue, while exports accounted for 80%.
| Item | Details |
|---|---|
| Sun control film | 51% of Q2 FY27 revenue |
| Paint protection film | 24% of Q2 FY27 revenue |
| Industrial products division | 25% of Q2 FY27 revenue |
Full-year guidance and capacity plans
The revised FY27 EBITDA margin guidance and the revenue target are management expectations, not completed results. For FY28, management is targeting an EBITDA margin of at least 28%.
During the October 23 earnings call, whose transcript and audio are listed in Garware’s investor meeting index, sales and marketing director Deepak Joshi said existing and upcoming capacity could support up to ₹3,500 crore in revenue at full utilization. He said a new sun control film line expected by June 2027 could contribute ₹450 crore to ₹500 crore.
Joshi said Garware’s partnership with Lubrizol on its new thermoplastic polyurethane film line is expected to reduce paint protection film manufacturing costs and expand the consolidated EBITDA margin by 1.5 to 2 percentage points.
Costs and customer concentration
Joshi said raw material costs rose 4% and logistics costs increased by ₹9 crore during the quarter, creating a combined headwind of approximately ₹37 crore.
One customer contributed 30% of revenue. Joshi acknowledged the concentration and said the customer had a long-standing relationship with the company. Inventory days rose to 58–60 from 28 in FY26, reflecting deliberate raw material stockpiling and extended customer inventory.
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