The shares of a leading Indian manufacturer of polyester films and high-margin specialty films with a 70 percent market share in India’s shrink film segment are in focus as the management has given an ambitious revenue target of Rs 2,500 Cr for FY26.
Price Action
The shares of Garware Hi Tech Films Ltd, with a total market capitalization of Rs 9,597 Crore on Wednesday, were trading at Rs 4,130.9 per share which was 1.23 percent lower than the previous closing price of Rs 4,182 apiece. The shares of Garware Hi Tech Films Ltd have generated strong returns of 143 percent in the past year, and 467 percent in the past five years.
Strategic Developments
The company has a strategic plan to invest Rs 118 Crore for a TPU (Thermoplastic polyurethane films) Extrusion Line at the Waluj Facility with a capacity of 360 lakh square feet PA which is expected to be completed in 18 months. Production from this line is set to commence by the end of October FY26, further strengthening its capabilities and expanding product offerings.
Since 2018 the company has delivered three capex plans, and the fourth capex of the additional PPF (Paint Protection Film) line is on track, which is expected to be completed by September FY25.
The company in partnership with Bajaj Finance Ltd introduced India’s 1st retail finance scheme for PPF with low-cost EMI options for premium protection. Through its strategic alliance with InsuranceDekho Garware Hi Tech Films Ltd incorporated PPF coverage into vehicle insurance for comprehensive protection.
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Product Innovations
The company launched two advanced variants of Paint Protection Film (PPF), including the launch of Coloured PPF and the launch of Head & Taillight Glass Protection Film.
Future Outlook
The management remains confident about achieving the guidance of Rs 2,500 Crores in revenue in FY26, expecting a growth of 20 to 25 percent citing strong demand and strategic initiatives.
The company expects robust growth in the SCF (Sun Control Films) segment, supported by new product innovations for the automotive sector and architectural applications. The management has a positive outlook in achieving the projected growth target of 25 percent plus/minus 3 percent concerning EBITDA margins.
Capacity
The company has four major product lines including Chips Plant with an Installed capacity of 66,000 MT, IPD (Industrial Products Division) with 42,000 MT capacity, SCF (Sun Control Films) with a capacity of 4,200 Lakh Sq. Ft, and PPF (Paint Protection Films) with an installed capacity of 300 Lakh Sq. Ft and the upcoming capacity of 300 Lakh Sq. Ft by Q2 FY26.
Financials
The company has reported an increase of 2.81 percent YoY in revenues from operations from Rs 454 Crores in Q3FY24 to Rs 466 Crores in Q3FY25. Their Net Profits saw a YoY increase of 9 percent from Rs 56 Crores to Rs 61 Crores over the same period. On the operating level, their EBITDA grew by 10.7 percent YoY from Rs 84.6 Crores to Rs 93.7 Crores.
About Garware Hi Tech Films Ltd
The company is primarily engaged in the manufacturing and supplying of tensile polyester films. It manufactures a wide range of products, including biaxially oriented polyethylene terephthalate/ Polyester Films, Sun Control Films, thermal lamination films, specialty polyester films, etc.
It is a Leading player in India’s shrink film market with a 70 percent market share and also India’s first company to produce PCR grade & APR certified Eco-friendly Shrink Films. The company has over 10 Registered/Pending Patents and 168 Registered Trademarks with a strong global presence across 90+ countries.
Written By Adhvaitha Nayani
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