Garware Hi-Tech Films Ltd (GRWRHITECH) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Garware Hi-Tech Films Limited Q2 FY '27 Earnings Conference Call, hosted by Go India Advisors. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Ms. Garima Singhal from Go India Advisors. Thank you, and over to you, ma'am.
Garima Singhal (Go India Advisors): Thank you. Good morning, everyone. I am Garima Singhal, and it's my pleasure to welcome you on behalf of Garware Hi-Tech Films Limited. Thank you for joining us today for Q2 and H1 FY '27 earnings conference call. This call is being hosted by Go India Advisors. Please note that today's discussion may include certain forward-looking statements. Therefore, they must be viewed in conjunction with the risk that the company faces. Today on the call, we are joined by Mr. Deepak Joshi, Director, Sales and Marketing. I now invite Deepak sir to present the company's business outlook and performance, after which we will open the floor for Q&A. Thank you, and over to you, sir.
Deepak Joshi (Garware Hi-Tech Films Limited): Thank you, Garima. Good morning, everyone, and thank you for joining us today. Before we begin, I would like to extend my warmest wishes to all of you and your families on the occasion of festive season. I hope this period brings happiness, prosperity, and good health to everyone. I hope you have had an opportunity to review our financial results and investor presentation. Q2 FY '27 was another important milestone for us. We delivered our highest ever quarterly revenue of 696 crore, up 22% year-on-year and 10% sequentially, which is nearing the 700 crore mark. EBITDA increased 42% year-on-year to 189 crore, with a margin of 27.2%. Profit after tax also grew 42% to 129 crore. This performance was achieved despite geopolitical headwinds and a slowdown in the Middle East. Demand, improved realization, and a favorable product mix and operating leverage supported growth and helped offset higher raw material and logistics cost. Our business follows a seasonal pattern, with Q1 typically benefiting from stronger summer demand for sun control films and a more favorable product mix. Q1's EBITDA margin of 30.3% was consistent with the strength typically seen in the quarter and should be assessed against prior year Q1 performance. As our product mix evolves, we believe margins of around 30% in Q1 represents a sustainable seasonal level. Against this seasonal backdrop, we delivered our best ever Q1, followed by our best ever Q2, with Q2 EBITDA margin at 27.2%, expanding 377 basis points year-on-year. For H1 FY '27, revenue increased 25% to 1,329 crore, EBITDA grew 49% to 381 crore, and profit after tax rose 50% to 262 crore. Profit before tax increased 51% to Rs. 350 crore, with PBT margin expanding by 464 basis points to 26.30%. Cash profit grew 46% to 293 crore. Our H1 revenue mix comprised 73% from CPD and 20- 27% from IPD, while value-added products accounted for 86% of revenue, highlighting the growing contribution of the niche, differentiated, and high-value products to our business. Our
Moderator: Sorry to interrupt you, sir. We can't hear you.
Moderator: Ladies and gentlemen, the line for the management got disconnected. Please stay on the line while I reconnect them.
Deepak Joshi (Garware Hi-Tech Films Limited): Hello? Hello? Hello?
Moderator: Yes sir, you're audible. Please proceed.
Deepak Joshi (Garware Hi-Tech Films Limited): No. So, please connect on the main line.
Moderator: Sure, sir.
Deepak Joshi (Garware Hi-Tech Films Limited): Yeah. This this is, battery is low here. Please connect on the main line.
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