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  4. /Garware Hi Tech Films Ltd
MomentumDeep Value

Garware Hi Tech Films Ltd: Why Is It Outperforming Nifty 500?

Active
RS +25.6%Average4w Streak

In Week of May 10, 2026, Garware Hi Tech Films Ltd (Packaging - Films) is outperforming Nifty 500 with +25.6% relative strength. Fundamentals: Average. On a 4-week streak.

Garware Hi Tech Films Ltd Key Facts

PE Ratio
36.3x
Market Cap
₹12,291 Cr
PAT Growth YoY
+39%
Revenue Growth YoY
+9%
OPM
23.0%
RS vs Nifty 500
+25.6%
PE: At PeakStrong Opportunity

What's Happening

💎PE falling while earnings hold — value emerging
🌐FII stake increased 2.0% this quarter
💰Trading 64% above estimated fair value — significant premium

Earnings Acceleration Triggers

1. Geographical Expansion
ImmediateHIGH
2. Operating Leverage Inflection
FY27HIGH
3. Value Added Product Mix Shift
FY27MEDIUM

Key Risks

1. U
HIGH
2. 40% of raw materials are dollar-denominated, creating a negative impact when the
MEDIUM
3. Volatility in raw material prices linked to import parity
LOW

Sector-Specific Signals

Export Revenue %74.3%-2.7%
U.S. Revenue Share40%-4%
Architectural Revenue Share22-23%+12%
PPF Capacity (LSF)600 LSF+100%

Key Numbers

PAT Growth YoY
+39%
Inflection Up
Revenue YoY
+9%
Stable
Operating Margin
23.0%
+400 bps YoY
PE Ratio
36.3
Current Price
₹5,290
Dividend Yield
0.23%
Fundamental Score
59/100
Average
3Y PAT CAGR
+27%
Market Cap
12.3K Cr
Valuation
Significantly Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

Why Are Garware Hi Tech Films Ltd's Earnings Accelerating?

Based on Q3 FY26 earnings • Updated Apr 19, 2026

Geographical Expansion

Expected: ImmediateHIGH confidence

What: Middle East Revenue Share: 8%

“We have doubled in 1 year, the sales to Middle East region. So we need a strong subsidiary”

Operating Leverage Inflection

Expected: FY27HIGH confidence

What: TPU Line Commissioning: October 2026

Impact: 1.5-2% margin boost

“we estimated this EBITDA margin will improve by 1.5% to 2% average for the company.”

Value Added Product Mix Shift

Expected: FY27MEDIUM confidence

What: Architectural Film Share: 22-23%

Impact: ₹500 Cr revenue target

“now currently, we are at around 22%, 23% of architectural sales. But with ultimate aim is to reach around 30% of that.”

New Product Or Brand Launch

Expected: FY26-FY27MEDIUM confidence

What: Garware Home Solutions: 1st Studio Opened

“We opened our first GHS studio in Chembur in Mumbai... This platform will help GHFL directly engage with consumers”

Market Share Gains

Expected: OngoingLOW confidence

What: U.S. Customer Retention: Zero lost customers

“the aim was not to lose any customers... we have protected our consumers from any, I would say, substantial increase in the prices.”

Revenue Resilience (-1.6% YoY)

MEDIUM confidence

What: Revenue Resilience (-1.6% YoY)

“Even in this challenging environment, GHFL largely maintained its offtake. Revenue declined marginally by 1.6% Y-o-Y.”

What Are the Key Risks for Garware Hi Tech Films Ltd?

Earnings deceleration risks from management commentary

U

HIGH

Trigger: Successive tariff actions by the U.S. government targeting exporters.

Impact: PAT impact: ₹40 Cr PBT impact per quarter (mitigated)

Management view: Absorbing a portion of tariffs, calibrating offtake, and using bonded warehouses.

Monitor: geopolitical

40% of raw materials are dollar-denominated, creating a negative impact when the

MEDIUM

Trigger: Key raw materials are based on import parity prices.

Management view: Partially offset by export revenues in USD/EUR/GBP.

Monitor: fx

Volatility in raw material prices linked to import parity

LOW

Trigger: Global supply chain dynamics for base films and chemicals.

Management view: Efficiency improvements and product mix strategy.

Monitor: commodity

What Is Garware Hi Tech Films Ltd's Management Saying?

Key quotes from recent conference calls

“we will ensure that we maintain the margins of 25% plus/minus 3%. That is the target guideline has been given for the EBITDA margins. [Previous EBITDA Margin guidance]”
“The new entity will manage trading and exports of films, ceramic coatings and paint protection films across the MENA region [Initiative: UAE Wholly Owned Subsidiary]”
“we are targeting now around INR500 crores by FY '27. And I can say like similarly, if we talk of by FY '30, we have an aim, ambition to make it to around INR1,000 crores [Initiative: Garware Home Solutions (D2C)]”
“we estimated this EBITDA margin will improve by 1.5% to 2% average for the company. [Initiative: TPU Manufacturing Line]”

What Did Garware Hi Tech Films Ltd Report This Quarter?

Headline numbers from the latest earnings call

Revenue

₹459 Cr

YoY -1.6%QoQ -19.4%

Why: Revenue declined primarily due to the tariff-related disruptions in the key export market of the U.S.

The company faced the full impact of a 50% U.S. tariff structure during the quarter.

EBITDA

₹86.7 Cr

YoY -7.4%Margin 18.9%

Why: EBITDA declined due to tariff-related cost absorption despite cost optimization initiatives.

Margins were compressed by 118 bps year-on-year due to the 50% tariff impact.

PAT

₹55.8 Cr

YoY -8.2%QoQ -38.8%

Why: PAT followed the EBITDA decline driven by the U.S. tariff headwinds and lower sequential volumes.

Profitability remains resilient despite the significant external headwind of 50% import duties in the U.S.

Other Highlights

• Exports contributed 74.3% of total revenues for the quarter.

• Cash and liquid investment balance stood at ₹669 Cr as of December 31, 2025.

• Paint Protection Film capacity doubled to 600 LSF in September '25.

What Sector Metrics Matter for Garware Hi Tech Films Ltd?

Sub-sector-specific signals from the latest concall — each with management's stated reason for the change

Export Revenue %

74.3%

YoY -2.7%QoQ -1.7%

Why: Slight decline due to calibrated offtake in the U.S. market.

U.S. Revenue Share

40%

YoY -4%

Why: Calibration of sales to avoid full tariff impact on customers.

Architectural Revenue Share

22-23%

YoY +12%

Why: Rapid expansion in Middle East and Indian markets.

PPF Capacity (LSF)

600 LSF

YoY +100%QoQ 0%

Why: Doubling of capacity completed in September 2025.

New PPF Line Utilization

65%

Why: Ramping up as per plan while old line runs at full capacity.

Garware Application Studios

250

Why: Aggressive expansion toward a target of 300+ studios.

Middle East Revenue Share

8%

YoY +4%

Why: Phenomenal growth in the region, doubling sales in one year.

India Revenue Share

25%

YoY 0%QoQ +1%

Why: Stable domestic demand with growth in architectural segment.

Dollar Denominated Raw Materials

40%

CPD Mix - Sun Control Films

44%

QoQ -6%

Why: Seasonal shift toward lower-range window films in Q3.

What Is Garware Hi Tech Films Ltd's Management Guidance?

Forward-looking targets from management for FY27

Revenue Growth Target

17.5%

OPM Guidance

20–25%

Revenue Outlook

15-20%

Margin Outlook

20-plus margin

Management Tone: CAUTIOUS

Guidance Changes

LOWERED

EBITDA Margin: 25% +/- 3% → 20% plus

How Fast Is Garware Hi Tech Films Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+9%+14%Stable
PAT (Net Profit)+39%+27%Inflection Up
OPM23.0%+400 bpsVolatile

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.

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Frequently Asked Questions: Garware Hi Tech Films Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Garware Hi Tech Films Ltd's latest quarterly results?

Garware Hi Tech Films Ltd's latest quarterly results (Mar 2026) show

  • PAT Growth YoY: +38.5% (turning around (inflection up))
  • Revenue Growth YoY: +8.9%
  • Operating Margin: 23.0% (volatile)

Is Garware Hi Tech Films Ltd's profit growing or declining?

Garware Hi Tech Films Ltd's profit is growing with an turning around (inflection up) trend.

  • PAT Growth YoY: +38.5% (latest quarter)
  • PAT Growth QoQ: +92.9% (sequential)
  • 3-Year PAT CAGR: +26.8%
  • Trend: Turning around (inflection up) — consistent growth pattern

What is Garware Hi Tech Films Ltd's revenue growth trend?

Garware Hi Tech Films Ltd's revenue growth trend is stable.

  • Revenue Growth YoY: +8.9%
  • Revenue Growth QoQ: +30.1% (sequential)
  • 3-Year Revenue CAGR: +13.8%

How is Garware Hi Tech Films Ltd's operating margin trending?

Garware Hi Tech Films Ltd's operating margin is volatile.

  • Current OPM: 23.0%
  • OPM Change YoY: +4.0% basis points
  • OPM Change QoQ: +8.0% basis points

What is Garware Hi Tech Films Ltd's 3-year profit and revenue CAGR?

Garware Hi Tech Films Ltd's long-term compounding rates

  • 3-Year Profit CAGR: +26.8%
  • 3-Year Revenue CAGR: +13.8%

Is Garware Hi Tech Films Ltd's growth accelerating or decelerating?

Garware Hi Tech Films Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.

  • YoY Acceleration: +46.7% bps
  • Sequential Acceleration: +88.5% bps

What is Garware Hi Tech Films Ltd's trailing twelve month (TTM) performance?

Garware Hi Tech Films Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹338 Cr
  • TTM PAT Growth: +2.1% YoY
  • TTM Revenue: ₹2,000 Cr
  • TTM Revenue Growth: +0.6% YoY
  • TTM Operating Margin: 20.5%

Is Garware Hi Tech Films Ltd overvalued or undervalued?

Garware Hi Tech Films Ltd appears significantly overvalued based on our fair value analysis.

  • Valuation Signal: Significantly Overvalued
  • Current PE: 36.3x
  • Price-to-Book: 4.6x

What is Garware Hi Tech Films Ltd's current PE ratio?

Garware Hi Tech Films Ltd's current PE ratio is 36.3x.

  • Current PE: 36.3x
  • Market Cap: 12.3K Cr
  • Dividend Yield: 0.23%

How does Garware Hi Tech Films Ltd's valuation compare to its history?

Garware Hi Tech Films Ltd's current PE is 36.3x.

  • Current PE: 36.3x
  • Valuation Assessment: Significantly Overvalued

What is Garware Hi Tech Films Ltd's price-to-book ratio?

Garware Hi Tech Films Ltd's price-to-book ratio is 4.6x.

  • Price-to-Book (P/B): 4.6x
  • Book Value per Share: ₹1143
  • Current Price: ₹5290

Is Garware Hi Tech Films Ltd a fundamentally strong company?

Garware Hi Tech Films Ltd is rated Average with a fundamental score of 59.07/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: +8.9% (10% weight)
  • PAT Growth YoY: +38.5% (10% weight)
  • PAT Growth QoQ: +92.9% (10% weight)
  • Margins stable (10% weight)

Is Garware Hi Tech Films Ltd debt free?

Garware Hi Tech Films Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹16 Cr

What is Garware Hi Tech Films Ltd's return on equity (ROE) and ROCE?

Garware Hi Tech Films Ltd's return ratios over recent years

  • FY2024: ROCE 14.0%
  • FY2025: ROCE 21.0%
  • FY2026: ROCE 18.0%

Is Garware Hi Tech Films Ltd's cash flow positive?

Garware Hi Tech Films Ltd's operating cash flow is positive (FY2026).

  • Cash from Operations (CFO): ₹275 Cr
  • Free Cash Flow (FCF): ₹67 Cr
  • CFO/PAT Ratio: 81% (strong cash conversion)

What is Garware Hi Tech Films Ltd's dividend yield?

Garware Hi Tech Films Ltd's current dividend yield is 0.23%.

  • Dividend Yield: 0.23%
  • Current Price: ₹5290

Who holds Garware Hi Tech Films Ltd shares — promoters, FII, DII?

Garware Hi Tech Films Ltd's shareholding pattern (Mar 2026)

  • Promoters: 60.7%
  • FII (Foreign): 4.0%
  • DII (Domestic): 5.3%
  • Public: 30.0%

Is promoter holding increasing or decreasing in Garware Hi Tech Films Ltd?

Garware Hi Tech Films Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 60.7% (Mar 2026)
  • Previous Quarter: 60.7% (Dec 2025)
  • Change: 0.00% (stable)

How long has Garware Hi Tech Films Ltd been outperforming Nifty 500?

Garware Hi Tech Films Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.

Is Garware Hi Tech Films Ltd a new momentum entry or an established outperformer?

Garware Hi Tech Films Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for Garware Hi Tech Films Ltd?

Garware Hi Tech Films Ltd has 6 key growth catalysts identified from recent earnings analysis

  • Geographical Expansion — Middle East sales have doubled in one year, prompting the establishment of a UAE subsidiary.
  • Operating Leverage Inflection — Backward integration will capture more value in the PPF chain.
  • Value Added Product Mix Shift — Architectural films carry higher margins and are seeing 30-40% growth in India.
  • New Product Or Brand Launch — D2C model for home architectural films captures higher retail margins.

What are the key risks in Garware Hi Tech Films Ltd?

Garware Hi Tech Films Ltd has 3 key risks worth monitoring

  • [HIGH] U — Successive tariff actions by the U.S. government targeting exporters.
  • [MEDIUM] 40% of raw materials are dollar-denominated, creating a negative impact when the — Key raw materials are based on import parity prices.
  • [LOW] Volatility in raw material prices linked to import parity — Global supply chain dynamics for base films and chemicals.

What did Garware Hi Tech Films Ltd's management say in the latest earnings call?

In Q3 FY26, Garware Hi Tech Films Ltd's management highlighted

  • "we will ensure that we maintain the margins of 25% plus/minus 3%. That is the target guideline has been given for the EBITDA margins. [Previous EBITD..."
  • "The new entity will manage trading and exports of films, ceramic coatings and paint protection films across the MENA region [Initiative: UAE Wholly O..."
  • "we are targeting now around INR500 crores by FY '27. And I can say like similarly, if we talk of by FY '30, we have an aim, ambition to make it to aro..."

What is Garware Hi Tech Films Ltd's management guidance for growth?

Garware Hi Tech Films Ltd's management has provided the following forward guidance for FY27

  • Revenue growth target: 17.5%
  • OPM guidance: 20–25%
  • Capex plan: Not Given for TPU manufacturing line
  • Management tone: cautious
  • Milestone: [LOWERED] EBITDA Margin: 25% +/- 3% → 20% plus

What sector-specific metrics matter most for Garware Hi Tech Films Ltd?

Garware Hi Tech Films Ltd's most important sub-sector-specific KPIs from the latest concall

  • Export Revenue %: 74.3% (YoY -2.7%) (QoQ -1.7%) — Slight decline due to calibrated offtake in the U.S. market.
  • U.S. Revenue Share: 40% (YoY -4%) — Calibration of sales to avoid full tariff impact on customers.
  • Architectural Revenue Share: 22-23% (YoY +12%) — Rapid expansion in Middle East and Indian markets.
  • PPF Capacity (LSF): 600 LSF (YoY +100%) (QoQ 0%) — Doubling of capacity completed in September 2025.
  • New PPF Line Utilization: 65% — Ramping up as per plan while old line runs at full capacity.
  • Garware Application Studios: 250 — Aggressive expansion toward a target of 300+ studios.

Is Garware Hi Tech Films Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Garware Hi Tech Films Ltd may be worth studying

  • Earnings growing at +38.5% YoY
  • Cash flow is positive — CFO ₹275 Cr

What is the investment thesis for Garware Hi Tech Films Ltd?

Garware Hi Tech Films Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Geographical Expansion

Risk Factors (Bear Case)

  • Appears significantly overvalued
  • Key risk: U

What is the future outlook for Garware Hi Tech Films Ltd?

Garware Hi Tech Films Ltd's forward outlook based on current data signals

  • Earnings Trend: turning around (inflection up)
  • Revenue Trend: stable
  • Margin Trend: volatile
  • Valuation: Significantly Overvalued
  • Key Catalyst: Geographical Expansion
  • Key Risk: U

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.