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.

The stock went into the print at ₹5,977, down 7.4% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; revenue is at a 6-quarter high.

Standalone PAT of ₹139.87 Cr (EPS ₹60.20) ran ahead of consolidated ₹129.44 Cr (EPS ₹55.71), largely on ₹46.64 Cr of standalone other income (subsidiary dividends) vs ₹19.53 Cr at the group level; standalone PAT grew a slower 31.3% YoY against consolidated's 41.9%.

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.