Garware Hi-Tech Films Limited has released the transcript of their Earnings Conference Call held on February 02, 2026. The call discussed the company's Unaudited Financial Results and Business Performance for the quarter and nine months ended December 31, 2025. During the call, management highlighted that despite a challenging global macro environment, geopolitical volatility, and a 50% tariff structure imposed by the U.S. administration, the company largely maintained its offtake. Revenue saw a marginal year-on-year decline of 1.6% for Q3 FY26 and 2.4% for the 9-month period. EBITDA declined by 7.4% year-on-year in Q3 FY26 and 8.3% for the 9-month period, primarily due to tariff-related cost absorption. Exports continued to be a significant contributor, accounting for 74.3% of total revenues in the quarter. The Sun Control segment experienced strong demand, with the architectural film business expanding rapidly across geographies. The company announced the establishment of a wholly-owned subsidiary in the UAE to manage trading and exports of films, ceramic coatings, and paint protection films in the MENA region and other international markets. A global application studio has also been set up in the UAE. Garware Hi-Tech Films has doubled its paint protection film capacity to 600 LS F, which is ramping up as planned. A new TPU manufacturing line is expected to be commissioned by October 2026. Additionally, the company launched Garware Home Solutions, a new D2C business vertical, with its first studio opened in Chembur, Mumbai, aiming to expand its domestic footprint. The Garware Application Studio network is expanding, targeting over 300 studios by the end of FY26, having already crossed 250 in Q3. Financially, consolidated revenue for Q3 FY26 stood at ₹459 crore, down 1.6% year-on-year. EBITDA was ₹86.7 crore, down 7.4% year-on-year, with an EBITDA margin of 18.9%. Profit Before Tax (PBT) was ₹73 crore, and Profit After Tax (PAT) was ₹55.8 crore. For the 9-month period of FY26, revenue was ₹1,523 crore, and EBITDA was ₹343 crore. The company remains debt-free with a robust cash and liquid investment balance of ₹669 crore as of December 31, 2025. Management discussed strategies to navigate the U.S. tariff impact, including passing on a portion of the costs, enhancing operational efficiencies, optimizing product mix, and diverting shipments to other territories. They expressed confidence in maintaining EBITDA margins around 20% in Q4 and Q1, with potential for improvement if tariff-related decisions are favorable. The company is also focusing on becoming more consumer-driven through initiatives like Global Application Studios and Garware Home Solutions.
