Garware Hi-Tech Q2 FY27: Consolidated PAT +42% YoY, EBITDA Margin 27.2%; Guidance Raised

Garware Hi-Tech Films posted its second straight record quarter — consolidated (primary) revenue of ₹695.53 Cr, up 22.1% YoY and 9.9% QoQ, with consolidated PAT of ₹129.44 Cr, up 41.9% YoY though down 2.4% from Q1 FY27's ₹132.65 Cr. EPS came in at ₹55.71 against ₹39.27 a year ago. Neither period carries an exceptional item, so reported and underlying growth are the same. EBITDA of ₹189 Cr (+42% YoY) carried a 27.2% margin, up 377bps YoY from 23.4% on operating leverage and a favourable product mix even as raw-material and logistics costs rose. Sequentially, margin compressed 311bps from Q1 FY27's 30.3% peak — the company's own EBITDA bridge shows a ₹4.2 Cr step-up in employee cost, ₹1.1 Cr in sales & marketing and ₹16.5 Cr in other expenses eating into a ₹71.8 Cr rise in operating profit. Net margin followed the same shape: 18.6% vs 16.0% YoY, but down from 21.0% in Q1. Management raised FY27 EBITDA margin guidance by 200bps to 27%±2% (from the 25%±2% reaffirmed last quarter) while holding the ₹2,500+ Cr revenue target, with Vice Chairperson Monika Garware noting H1 FY27 margin of 28.7% ran "well above" the prior 23%-27% band — a clear guidance beat. Against our pre-result preview, which flagged a sequential pause after Q1's record and an on-plan range of ₹560-580 Cr revenue / ₹100-115 Cr PAT, the print beat decisively on both counts; revenue in fact grew QoQ rather than moderating, with only margin and PAT showing the flagged sequential softening. No quarter-specific brokerage PAT/revenue consensus turned up in a search; external commentary instead centred on whether Garware can sustain 20%+ PAT CAGR through FY28, a debate this quarter's numbers support without settling. The September 23 Lubrizol MoU (₹118 Cr TPU extrusion investment, 75% backward integration for PPF / 25% new product development) is the quarter's structural highlight, guided to add 150-200bps to consolidated EBITDA margin once productive. The TPU line stays on track for Q3 FY27 commissioning, guided to lift margin 1.5-2% in FY28; the ₹191 Cr SCF line targets H1 FY28 commercial production, adding ~1,200 LSF of capacity toward the medium-term ₹3,500 Cr revenue goal. Watch whether the raised 27%±2% margin band holds given this quarter's 311bps sequential compression, and the pace of the Garware Home Solutions rollout (14 studios now, 12 more planned in Q3 toward 50 by December 2027).