Garware Hi-Tech Films Limited Q2FY26 Concall Decoded: 50% US tariffs, 23% margins, and a masterclass in not panicking

1. Opening Hook

While most exporters are crying into spreadsheets over U.S. tariffs, Garware Hi-Tech Films calmly absorbed a 50% duty hike and still walked out with 23% EBITDA margins.
Yes, revenues dipped YoY, but sequential growth showed up like an uninvited optimist.
Customers weren’t lost, inventories were gamed smartly, and margins were defended like a fortress.
Management didn’t promise miracles—just patience, cost control, and optionality.
Between architectural films booming, PPF capacity doubling, and a TPU plant quietly loading in the background, this concall wasn’t about damage control.
It was about endurance.
Read on—because this wasn’t a growth call, it was a survival flex. 😏

2. At a Glance

Revenue ₹570 Cr (–8.2% YoY) – Tariffs swung the bat, base effect finished the job.
QoQ growth +15% – Despite Q1 usually being stronger, surprise cameo.
EBITDA ₹133 Cr (–11.4% YoY) – Hit absorbed, margins refused to collapse.
EBITDA margin 23.4% – Cost discipline doing overtime.
Exports at 77% – Global pain, global scale.
Cash ₹697 Cr, zero debt – Stress-free balance sheet therapy.

3. Management’s Key Commentary

“We absorbed part of the 50% U.S. tariff to protect customers.”
(Translation: Long-term relationships > short-term margins.) 😏

“We don’t want to lose a single U.S. customer built over 25 years.”
(Translation: Market share is sacred.)

“Non-U.S. markets grew ~20%.”
(Translation: Diversification actually worked.)

“PPF took the maximum tariff hit.”
(Translation: High-value products hurt more.)

“Architectural films are growing 25–30%.”
(Translation: Quiet star of the portfolio.)

“TPU integration can add 1.5–2% to EBITDA.”
(Translation: Margin kicker loading… slowly.) 🚀

4. Numbers Decoded

Source table

Metric	Q2 FY26	YoY
Revenue	₹569.7 Cr	▼ 8.2%
EBITDA	₹133.3 Cr	▼ 11.4%
EBITDA Margin	23.4%	Stable
PAT	₹91.2 Cr	▼
Exports	77%	High
Cash	₹697 Cr	Strong

Sequential recovery shows tariff shock is being digested.
Margins holding above 23% is the real headline.
Cash pile gives freedom to wait, not rush.

5. Analyst Questions (Decoded)

Who absorbed the tariff—company or customer?
Both. Split varies.
(Translation: Don’t expect a neat spreadsheet answer.)
Are customers deferring orders?
Inventory cut, demand

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