Thank you. Good morning, everyone, and I am Garima Singla, and it's my pleasure to welcome you on behalf of Garware Hi-Tech Films Limited.

Thank you for joining us today for Quarter 4 and full year FY26 earnings conference call. This call is being hosted by Go India Advisors.

Please note that today's discussions include certain forward-looking statements. Therefore, they must be viewed in conjunction with the risks that the company faces.

Today on the call, we are joined by Mr. Deepak Joshi, Director Sales and Marketing, and Mr.

Abhishek Agarwal, CFO. I now invite Mr.

Deepak Joshi to present the company's business outlook and performance, after which we will open the floor for Q&A. Thank you, and over to you, sir.

Thank you, Garima. Good morning, everyone, and thank you for joining us today.

I hope you have had a chance to review the presentation that was shared earlier. Let me take a few moments to walk you through how the year unfolded for us.

Garware Hi-Tech Films is, at its heart, a story of trust, resilience, and long-term relationships built over generations. While we have grown into a global enterprise, what continues to guide us are the strong core principles: innovation, integrity, and a customer-first approach.

FY26 was a year that truly tested these values. The global environment remained challenging, with geopolitical volatility and elevated tariff structures across key export markets.

The impact was seen in FY26 full year, with most impact felt during the third quarter. In such a situation, our response was not reactive, but measured.

We calibrated our off-take to ensure supply chain continuity, and more importantly, to stand by our customers and partners. That made the difference.

Despite the challenging environment, we were able to maintain our market share across key geographies, reflecting the strength of our relationship and superior quality competitiveness of our products. As the year progressed, this steady and disciplined approach began to translate into stronger performance.

We concluded the year on a strong and positive note. Q4 was the highest ever profitability quarter in our history, EBITDA at INR 157 crore, up 29% year-on-year basis, and margins expanding to 26.2%.

Profit after tax stood at INR 108 crore, up 39.1% year-on-year, a clear reflection of our operating leverage, improved realization, and a stronger product mix. For the full year, despite the headwinds, we delivered our highest ever revenue and profitability, with revenue at INR 2,120 crore, EBITDA at INR 500 crore, and PAT at INR 338 crore.

This performance reinforces the resilience of our business model and our ability to navigate cycles with discipline. While navigating near-term challenges, we remained equally focused on building for the future.

We continued to strengthen our value-added product portfolio with the launch of sustainable TPU-based UV printable films, PDLC speciality films enabling privacy on demand, and advanced graphic solutions. During the year, we deepened our market presence across both international and domestic markets through strategic customer additions and channel expansion initiatives.

We witnessed strong traction in the US and UK with the onboarding of several established distributors from competition, reflecting superior quality of our product and unmatched distribution network. In India, we further expanded our domestic footprint by onboarding four large OEMs in automotive segment along with 7+ strategic addition in our architectural business segment, supporting our continued expansion in the fast-growing D2C segment and enhancing our overall market reach.

Alongside, our brand building efforts are gaining momentum, with around 18 lakh annual website visits and over 8 crore impression annually across Meta platform, strengthening our customer connect. A key part of our journey has been getting closer to our end customers.

Globally, we expanded our footprint with 11 new global application studios, including in the UAE and the US. In India, our Garware Application Studio network has grown over 250 locations, and we are on track to cross 300 shortly.

In parallel, we are building our strong consumer-facing platform through Garware Home Solutions. With six studios already operational, we are confident of scaling this to 50 studios by the end of FY27.

On the manufacturing side, we have taken significant steps to prepare for the next phase of growth. During last few years, we have deployed over INR 500 crore towards capacity expansion across two PPF, one sun control, one metallizer, and one TPU and other ancillary line, entirely funded through our internal accruals, reflecting strong cash generation and disciplined capital allocation.

We announced an additional 191 crore investment in a new sun control film line, adding around 1,200 lakh square feet capacity, supported by advanced robotics and automation. Even after these investments, our balance sheet remains strong and debt-free, with cash reserves of 724 crore, giving us the flexibility to continue investing while maintaining financial prudence.

Looking ahead, the upcoming TPU line, expected to be commissioned by October 2026, will further strengthen our innovation capabilities. We are also encouraged by the recognition we have received during the year, including the PLEXCONCIL Highest Exporters Award and being recognized among India's top value creators by Dun & Bradstreet.

As we look forward, the next phase of growth for Garware Hi-Tech Films will be driven by our high-value, innovation-led segments, including sun control, paint protection films, graphic solutions, Garware Home Solutions, and TPU-based new products. When we step back and look at the broader picture, our marketing momentum, disciplined capital allocation, expanding D2C platform, accelerating B2D growth, and continued product innovation makes us well-positioned for the next phase of growth.

Thank you for your continued trust and support. I would like now to hand over to Mr.

Abhishek Agarwal, our CFO, to take you through the financial performance in detail. Thank you.

Thank you, Deepak. Good morning, everybody.

Let me take you through the key financial highlights for fourth quarter and full year ended 31st March 2026. We closed FY26 on a strong note, with Q4 emerging as one of our best performing quarters.

Consolidated revenue for the quarter stood at 597 crores, reflecting a healthy 8.9% year-on-year growth, along with a strong sequential recovery. EBITDA for the quarter came in at 157 crores, registering a robust 29% year-on-year growth, with margins expanding to 26.2%.

While the PBT stood at 142 crores, up 31% year-on-year, while PAT increased to ₹108 crores, up 39% year-on-year, reflecting the strong bottom-line expansion and improved operating efficiency. For the full year 2026, we delivered a steady performance despite a challenging external environment.

Revenue stood at 2,120 crores, demonstrating resilience in face of tariff-related disruptions in the key export markets. EBITDA for the year was INR 500 crores, with margins maintained at 23.6 crores, 23.6%, reflecting our ability to sustain profitability across cycles.

PBT came in at 446 crores, while PAT stood at 338 crores, with margins improving to 16%. Importantly, our balance sheet continues to remain a key strength.

We continued to maintain a healthy debt-free balance sheet, with cash and liquid investment of ₹774 crores at the year-end. Our disciplined capital allocation and strong balance sheet give us the confidence to pursue this growth while continuing to enhance stakeholder value.

Thank you, all. I would now hand it over to--

Over to the moderator, please.

Hi. Good morning, sir.

Thank you so much for taking my question. Sir, one housekeeping question.

For full year, what proportion of our revenue comes from the sun control films, paint protection films, and rest consumer products? Yeah.

Thank you, Mahesh. Our revenues for last year were almost 50% from sun control films, and both 25% from PPF and 25% from IPD.

That's a break-up for last year.

Sure. Sir, the plan we have announced, when this will become operational?

Which year it will start contributing to your sales?

This new sun control film expansion, commercial production will start by June 2027. That is Q1 FY28.

Okay. This will be carried in the existing plant or we will set up a new plant?

No, no. This is entirely a new plant at the same location.

It's a it's a new facility. The our earlier sun control the the earlier line, it will be adjacent to that line.

This line will have more features in terms of automation and robotics to take us, it will be a new experience for our consumers for kind of untouched material which we are trying to make from this new line. It will it will improve our efficiency.

It will improve our productivity. At the same time, it will be entirely new experience for our consumers as we are growing at a very fast pace in sun control business.

This entirely will be export-focused or is it domestic also?

Our strategy, if you see, we focus on both markets. Both are important.

The ratios which we expect, growth all across the territories, though domestic market will also grow, but ultimately, it will be 75-25 or 80-20 ratio between export and domestic market. That ratio will continue because of the overall growth which we are targeting for the company.

Sir, last question from my end. Sir, last year, our revenue was flat almost, same revenue what we reported in FY25.

If we were to look at for next two years, what kind of growth we anticipate in terms of sales, and even backward integration project is going to come up, what kind of improvement in margin we see in next two years?

We expect we have been growing at CAGR more than 20% for last four years except FY26, which has been purely because of sudden 50% tariff and which was almost there till the whole year, and around February 20th this all went off. We didn't get enough time to recover what was done in the last year.

That's the reason, because if you see nine-month performance was around 10% below our previous year FY25 performance. We did a great jump in Q4 by taking revenues and profitability to highest level for us.

That means this year we hope that such situation is not there, right? We expect minimum 2,500 crore revenue for FY27, right, and we will maintain 25% plus minus 2% EBITDA guidance.

Earlier we gave 25% plus minus 3%, now we are doing 25% plus minus 2%, and we expect some margin improvement when TPU line comes on stream. With the growth of the company's strategy now to direct to consumer, D2C business, that's why we have emphasized that Garware Application Studios, Global Application Studios in US and Mid East, and Garware Home Solutions, these three are directly to the consumers.

If you really see our strategy, D2C supported by our strong campaigns, marketing campaigns, digital campaigns, where you saw around 8 crore impression from Meta platforms only and website visits which used to be 5,000, 7,000 in a month, it has gone almost close to 1.7, 1.8 lakh a month. Our digital drive and the focus towards the consumer is the key focus for years to come.

Direct to consumer is the right strategy. Another one thing we are doing, we are selling direct to consumers in USA PPF business also.

All those things reflects our key strategy is D2C supported by digital marketing. Third thing, with the innovative new products, like in Home Solutions, we are doing all sun control films, but at the same time privacy on demand, which are switchable films.

That means you can make your windows fully opaque, semi-transparent, and full transparent by click of a button. These kind of new technologies, we want to make this technology to go to every standard homes in India and when it will go to abroad.

With all those strategies, our major focus is brand building and direct-to-consumer focus.

Sure. Thank you so much, sir.

Thank you.

Hello. Congratulations on great numbers.

My questions were mostly regarding, first, are there any exclusive partnerships that we've done with several OEMs or brands for our PPF sales in India?

Yes, definitely. We have four big partnerships with OEMs.

That means direct agreement with the OEM, they take our material to their showrooms. We have four such strong partnerships.

Two are already in discussion and samples are already approved. That is already there.

Okay. What are the current utilization levels at all our facilities?

Yeah. Our sun control lines are running around 75% to 80%.

With current expected CAGR of around 15% 20% growth there, which we are expecting for this year, by next year, we will be fully utilized. That's why we have announced this capex of 191 crore for sun control lines.

PPF, we are running at the rate of around 85% to 89% at current rate. That also we expect to go full, and we will use some fungibility of the new sun control line and think of future expansion if required on that.

As TPU line is on target, that is coming on October this year. That's the operating rate for us as of now.

Last question from my side. Anti-dumping duty that was supposed to come on the cheap imports that are happening from China and Korea, any update on that?

See, there may be some interest or confidentiality. The news is that all hearing, submissions, and everything happened, all visits for government officials, too, that has also been done.

We expect a positive news pretty soon, as fast as maybe this month or next month.

Okay. Thank you.

Thank you for answering the question.

Thank you very much.

Please go

ahead. Am I audible?

Yes.

Congratulations to the entire team of Garware Hi-Tech and the promoters also, wonderful set of numbers and in a tough environment for the last one year.

Thank you very much.

We have been talking in the previous con calls about our focus on Middle East. Just to understand, we had formed a subsidiary which was supposed to get completed in this Quarter 4 and we had spoken that various opportunities are being put in place including on the marketing side and also how the subsidiary would offer some of the options including across the region as well as there was a discussion about the manufacturing plant.

Can you spend some time about where are we in terms of sales being Middle East, what are the various steps being taken, and where do you see Middle East sales going up the next one or two years?

Yeah. See, we consider Middle East, North Africa region, MENA, which is the biggest growth driver for us.

As of now, let me tell you, the sale of that is roughly around $15 million, and we expect a growth of around 25% to 30% CAGR for the year. We are targeting $20 to $22 million during this year, right?

That's growth pattern. Now, how did this happen?

Like we said, we have a separate team which comes from the top competition, and the entire team is built in the Middle East, and they are growing pretty fast. The subsidiary has already been completed, the work has been completed.

Now, already some work has gone into this some kind of, I would say manufacturing or some kind of value addition. That work is going on.

The primary purpose of that of any kind of unforeseen situation from anywhere in the world, like we faced last year, we will be well poised to cater our customers with these kind of flexibility. That was the purpose, and we are well on track for that.

I've shared you targeted numbers and what we are doing there, and this work is in progress. When there is any further update, we'll update you on that.

With regards to this capex which you have announced, PPF, we are already at 85% and 89% utilization as what you mentioned for previous participant,

and

SCF somewhere around 75% to 80%. Generally, I would have thought you would have already decided or thought about a new PPF line, but instead of a new PPF line, we are going ahead and building up a new SCF line, almost 35% capacity addition.

Just to understand the scenario behind this, is it because demand is quite robust in terms of SCF and architectural films which is SCF? This is why we have announced this SCF expansion rather than going for one more PPF line?

Yeah.

See, I will tell you the growth in SCF has been pretty rapid. Of course, PPF is also growing us very fast.

Let's see SCF means we are very well-known brand in India and US, Global is a well-known brand for automotive. You see that growth is always there despite we have hit quite strong market penetration on that.

At the same time, all architectural growth also comes from there. If you see our new initiative which are coming from Garware Home Solutions, architectural is in a big demand.

I can always say that the sky is the limit for architectural business because everywhere there is a glass, a film can be put on the glass. In architectural, this is the world because if you see the normal sun control films, safety and security films, the films which are on privacy, privacy on demand, and finally, we make the products which is dual reflective or reflective.

You see, options are unlimited in architectural segment. We just started that work two, three years back, right?

We are growing pretty fast there, with GHS on board and architectural other brand. Like we are on all airports now, railways now, and big hospitality chains are already under our contract in last one to two years.

This growth we are expecting the fastest. We might grow around 25% to 30% as well with the support of GHS and architectural business.

That's why the need for sun control film came first. Another thing is sun control capacity is bigger than the PPF when we put in a new line.

That means PPF lines, because of the speed and microns, it produces roughly 25 lakh square feet in a month, whereas sun control film can produce 100, 125 lakh square feet in a month. What happens is when we put sun control plant, that means fungibility, wherever we are sure that PPF will also go 100% utilization by next year, but we can do the fungible business which we have done in the past for PPF as well in sun control line.

That's the rationale behind putting a sun control line ahead of a PPF line. Okay.

I thought there is something to do with even one of the large customers, who, from yesterday's con call, mentioned about the environment changing from demand limited to more of capacity limited, that's the statement made by one of our large customers in yesterday's con call, maybe we are trying to create capacity somewhere keeping that in mind.

No, I think, let me tell you, our growth has been phenomenal, and the large customer may buy because these customers buy sun control as well, PPF as well, right? See, let me tell you, I just answered the first question, 50% of our revenues are from sun control.

Anyway, sun control is our number one product. If you see, the growth is also the fastest in that.

Everything is linked to that, right? Building a sun control line, anybody can say anything, but it's one of the toughest challenge that people have.

Our lines, I can't tell the details, but they are so advanced that people can't compete with that kind of the operations done at one go. Like they are built by our own team.

There are very unique operations in all of sun control machine, which nobody has in the world. We know our sun control business is a unique model which is growing very fast, there is no stopping to that.

PPF of course is growing very fast for us, and with previous participant asked about anti-dumping and similar many measures are going here, Middle East, and USA. Especially direct to consumer is one of the first priority in PPF.

That growth is unmatched. I didn't say that we will not put another PPF line, but we are continuously growing in sun control, in PPF, and of course TPU, being a backward integration, we'll have more demand.

That will also be decided by the company where to move fast, but we are on a take-off mode on all three products.

That's very heartening to know, Deepak sir. Last thing on architectural.

You did mention much about our architecture. In the previous con call, you had mentioned that we are about to do about 300 crores in FY26.

From that 300 moving to 400 crores in FY27 and 450 to 500 in FY28. Now, given the changes which have happened in terms of the tariff changes and also your focus on Middle East, do we expect this architectural films to be higher than the number which you have given in the previous con call?

See,

it's very difficult to keep each numbers ahead. What I am saying is we are quite confident to reach 2,500 crore for the coming year, and whatever we add into new products like graphic solutions, PDLCs, and printable PPF and all those things, this will be definitely on top of that, right?

Whatever happens cannot happen in a year's time, we are shifting the ground. That's what I said, the important thing is company's strategy for the future.

The strategy is direct to consumer, the strategy is building a stronger new product developments, R&D, and a channel which remains there with the help of consumers, right? All others are definitely there.

We are strong in B2B segment, we are strong with OEMs because they like the product, they like the quality, and on much bigger hospitality and other industries including railways and airport, right? Our ultimate goal is to penetrate everywhere, but the brand should be visible in terms of consumers.

That's the first priority with the digital penetration. I'm giving you this number of 2,500 crore plus, plus a growth of 20% CAGR which we have done in last four years, barring last year, right?

That will include everything.

Thank you so much, Deepak sir, and wishing you all the best for the score that's laying ahead. Thank you, sir.

Thank you. Thank you very much.

Hello. Am I audible?

Yes.

Congrats on a very good set of numbers. I had two questions.

First, I just wanted to understand how is the shipping dynamic right now, with the war going on in the Middle East? How are the shipping if we talk about from coast, January, and what are the freight rates?

Yeah. See, on the war, like somebody said, I will repeat, this is not the first war and this won't be probably the last war.

The world will go like that. We at the company, if you really see, we have seen a COVID time when we really performed well, where shipping lines were not available, people were not available, but we performed and we guided the company to new heights.

Then came to the tariff situation. Before that, Russia was a big market, then there was a conflict, and then I said this tariff which was the biggest like headwinds for us, right?

Now, this Middle East thing has come. Let me tell you one thing, the quick the good thing about Garware is that it has got it supplies over 90 countries in the world.

When USA is in trouble, Europe and Eastern Europe helps us. When there is a issue in some other part of the world, other part helps.

In the Middle East region, whenever there is a problem, we have like other areas which really perform well because I think somehow the material reaches there, but through different routes. We have all, and we are in touch with our customers.

This and we are not feeling any, negative impact. If the supply chain is difficult, but ultimately, business is going as usual there.

Again, even if there is a I mean more trouble into that, but we are poised to sail through that. In terms of like, our sailings, we are in the past also, we have avoided Hormuz and we have also avoided Suez Canal.

It takes longer route, it is more on expenses on, I mean logistics and all, but that is only a very small part of our sales. Like I said in our previous conference calls, when things were very, very tough due to tariff situation, I said that the company has a motto that we will not lose a single customer, whatever it takes, because we know if the there is there will be a brighter time.

We held onto that. We make our inventories to sustain in a way that whenever the opportunity comes, people can refill, our customers can refill their inventories to lead to to sail through it successfully.

Same thing, all those things we always think for future, like how we can cater that market in the best possible way. In the current situation, we see it's not as big as like the last year, as big as trouble it was last year, it is being handled very nicely, I can say.

Second follow-up on that, in the last con call, you did mention that due to the tariff, our inventories are at the port and we are just waiting for the tariff to get cleared so that we can release those inventories. How is the situation from the supply end right now?

What solution we are in the inventory?

Whatever we said, actually that held true, and that's why we did a good job in second half of February and March. We released most of the goods, I can say, required by the consumers at that time.

We still have, I can say, roughly if you talk of the US territory, around $16 million is already there in transit plus warehousing, plus we are making more goods for the consumer because the demand and the season is coming and it is one of the best seasons which we have always, Q1 and Q2. I gave you the inventory numbers and it's good demand cycle going on, that's all I can say right now.

Understood. Sir, with this Garware Home Studios opening 50 in this year, how big of this segment can it be if I see for at least 3-4 years, 5 years, can--

Sorry, I was not able to hear. You are talking of Garware Home Solutions or Global Application Studios?

Garware

Home Solutions. I am basically talking about Garware Home Studios.

Garware Home Solutions. Yeah.

Like we said, we opened six in a very quick succession, and around four to five are already in pipeline due to the time schedule we are opening them, right? By end of this year, target is 50, right, to open the 50 studios in different parts of India, right?

The concept of this is as our distributors, dealers are pretty big in size, to cater these smaller home buyers, we are opening this studios in every neighborhood so that the smaller ticket size job can be done. Of course, it's a higher-margin job, right?

That's ultimate idea is direct-to-consumer strategy that fits into our B2C model, direct-to-consumer model, where most of the work will be done through digital mode. That means the payments and ordering and all flows will be digital mode.

That work is still into pipeline, but the market is really responding well, and we are getting great responses from the home buyers because this is something new for them. They were never able to get this kind of small ticket supplies from us.

I'm very happy when I was in Delhi and Gurgaon region and we opened there, I met many customers and they said this small ticket size business from Garware, which is a big brand name, this is helping us, and we are using a lot of influencers to update people about these kind of new offerings, and happy to share that we are getting outstanding response from the market on this.

That would all be consumer-facing with the kind of value additions that you made. Basically, how big this segment can become in total, like if you see-- Right, so

as I said, we just started, it's in nascent stages, and it's very a digital-driven business. We expect by next financial year end, we should cross around 200 crore from Garware Home Solutions plus other new products together, because this all mostly would be part of Garware Home Solutions, and going forward, our aim is higher than that.

At least I can say for next financial year, FY28, we should cross 200 crores business from Garware Home Solutions and plus added new products like PDLC and others.

Got it. Wishing all the best for the coming quarters.

Thank you.

Sir, my question is related to refund of tariffs from the USA government, which implemented earlier actually. What kind of amount we are expecting?

See, this amount is definitely whatever we paid is being refunded, and we are in touch with authorities also, and we have opened the account. This is I'm not sure, I cannot guarantee, because this is a government matter, and as the time it comes, definitely then only I can confirm about that because it's something which is accounting-related matter.

Let me tell you, when from 50% tariff we did such a great job, we only let's say what we could do in FY25, we managed that in FY26 as well. Without tariff, I think we have a big, I think, big way to go and we are targeting 25%, 30% growth there.

On that number, I'm avoiding because when it comes, it's accounting, we would like to be conservative, and whatever is in our hand, we are focusing on that, right, what is the strategy for the company, how we get it. We are focusing on something which is in our hand, we will not let that go.

Like in our hand was not to lose a single customer, which we did. Now, this tariff, whenever it comes, that's great and we'll have to see on the accounting standards how it is to be put into our books, and some of them we might have to give for the consumers also, right?

Definitely there will be a positive news on that.

Okay. Second question related to this input cost rise, there is a significant increase in the raw material cost.

Just want to know because of this inventory gain, we will be reporting better margins in Q1, and how we will be managing this cost increase actually? See,

we have very great agreements with our consumers, because we are always transparent with them. Like during tariff time also, we were very transparent with them, like what should be the number, how we will compete into the market.

We are not the people like if there is a 50% tariff, we will put on our consumers and our customers and do away. We have always been very understanding.

Same way, our customers are also understanding because we have a scientific method where we see the correlation between the raw materials, which is PTA and MEG, versus our IPD products versus our TPD product. In all that likelihood, we went to the market and discussed with them, and we were able to get that kind of increase from our customers in a very healthy and ethical way.

Okay. Sir.

Sir, in PPF business, can you tell what is the proportion between direct to consumer and B2B?

You mean margins between D2C and the big customers, the distributor? That's what you are asking?

Yeah. You mentioned D2C as well, actually, in the yeah.

Yeah. In D2C, it is usually I can say 30%, 40% higher than the distributor margin.

It depends case-to-case basis how do we negotiate, but D2C is always better because then there are no distributors or dealers in between, you are directly handing those things. In that, the real cost comes of your digital marketing and penetration.

Of course, the margins are definitely 25%, 30% higher than the distributor margins. Sir,

revenue front, how much-- I'm

This last question. Revenue share I was looking for, sir, from D2C and B2B in the PPF product.

Let me tell you, we started this campaign maybe two years back in Garware Application Studios, but Global Application Studio we started six months back only. As of now, I can estimate the D2C business is only 10% of our overall revenue.

In India, it is I can say it's 40% as high as, but together with world market, I can say it is only 10% to 15% right now, right? It's growing pretty fast, and that's the future for us.

Sir. Okay.

Thank you, sir.

Thank you.

Hi Deepak sir. Congratulations on a fantastic full year numbers and a handling of the tariff thing.

I have two questions. Rest of the questions have been answered.

In the Q3 call, you had mentioned that we have some partnership that are going on with the Chinese players for using our Global brand. Any status update on that, if that transaction is signed and what would be the outlook to that partnership?

In the PPT, we have mentioned about four OEMs on-boarded in the PPF business. Is it like a OEM like Mahindra, Tata, or a couple of brands, right?

Answering the second question first. Yes, it is the same tie-up which we did with Mahindra and Mahindra, similar, because I'm not giving name for the competitive safety for us.

We have now four in our books and another two the discussions are going on. You are right on that, and that's how the growth into PPF is continuously happening in the domestic market.

This is your second question. First question, yes, the discussion is still on, because honestly, after tariff, the situation changed for us, and the order flow increased so big in Q3.

Of course, that was somewhere in February, we updated you on that. That discussion is still going on, because some of the agreements are still being discussed, because that would be a long-term partnership.

We are still in discussion, and we are hopeful that that will definitely help us in PPF business going forward. It's not yet concluded, but we are making sure that it goes in the right direction.

Got it. What would be the US share in Q4, I guess it was not mentioned in the PPT.

Middle East you mentioned in one of the answers that it is around $15 million, Middle East and North Africa region, which is around 6% of the revenues. What would be the US share for Q4 and full year?

One second, huh? What was the US?

Yeah. Last year it was 45%.

If you talk of FY25, it was 48%. Last year, because of tariff and all situation, it was 45%.

Got it. Thank you so much and wish you all the best.

Thank you very much. Thank you very much for encouraging words.

Am I audible, sir?

Yes.

Thanks for the opportunity. My question is on one of our customer has indicated plans to move toward in-house manufacturing of PPF.

How should we think about potential impact on our business over the medium term and also what is our medium-term goal with Global Application Studios?

Yeah. That kind of announcement actually that has been discussed, I think there is no direct impact because we are not the only supplier for them, and whoever you are talking, there are others as well.

We don't see any challenge in our volumes, but at the same time, we are always working because we always want to go to the market, and that's how we are now 40% into D2C market in the domestic market and overall 10% to 15% in our portfolio for PPF. For us, we don't see any challenge on that.

In fact, we are now 85%, 89% capacity 85% to 89%, and we are full with order book on that. There is no challenge which we see into that, right?

The second thing is our major thing is sun control, which is 50% of our revenue generator, and that we are continuously growing even with stronger spend going forward, right? That is there.

When you talk about Global Application Studio, that are in USA and Middle East, we have a target for both the places, overall, we should have at least, I can say, 50 for 50 for next one year. That's the target which you are keeping for Garware Global Application Studios.

They will be currently 10% to 15% volumes coming from them, Garware and Global Application Studios, and we definitely would like to go 25% and then 35% with that target going forward for our business, and that will increase our margins. Second thing is the brand visibility will increase more and more.

Got it, sir. Within the SCF sales in FY26, can we know what's the contribution of architectural films, sir?

Okay. Architectural, it is around 25% of total sun control sales.

That is growing. I can say 25% to 30% is moving towards that.

Got it, sir. Thank you.

Thanks.

Thank you.

Thank you for taking my question and congratulations on good set of numbers. Sir, my question is in terms of you are mentioning that Garware will now become more of a D2C brand.

What kind of investments are we doing because in terms of marketing and all that spends etc. Will our margins be lower than historically for some time?

See,

our strategy is not we are not stopping B2B to grow into D2C, right? What is happening, this work has been we have been doing this work since last one year, right, where our D2C D2C focus is increasing, and we already did a great marketing campaign last year which was part of excellent performance of FY26, where our impression were close to 8 crore from, Meta platforms only, and apart from that our we revamped all our websites and put a new effort so that everybody sees actually what we are doing into the market.

In Garware Home Solutions, we are directly building a channel which is you can order online these kind of things with our app and our website, right? These efforts definitely we have budgeted for this year as well.

Last year, we already started spending on that. This year also we budgeted these kind of things into our numbers already.

I can say there is a slight increase in our marketing budget, but definitely D2C is going to be 25% to 30% higher margin in D2C even for this year. The volumes for this year is not that great, I think the next year it will be even bigger, but this numbers of will not change, like more spending on branding, because we have done that as a mix of our business strategy, where OEM we are growing, right, and these hospitality industry, all big hotel chains are doing great with us, and then airport authority, railways, and all those things are helping us to grow on all around.

That's the strategy for us.

Got it. In terms of current results, what would be the currency appreciation and the entire general impact?

Sorry? Due to

dollar appreciation, what would be the impact on our appreciation in sales growth? See,

on the currency, we definitely get advantage, I won't say no on that. Our raw materials, like previously asked, like the raw materials PTA and MEG, and plus some of the chemicals and raw materials, they are either imported directly or on import parity basis.

I can say 50% to 50% impact is definitely nullified with that, right? For the balance, definitely we get an advantage of that.

Exact number, Abhishek, can we give? Do we have some kind of this thing on that?

I'm just asking our CFO on that. Definitely, as I said, 50% is naturally hedged because our import or import parity business is there.

Balance, definitely we get advantage of that. Sorry, please go ahead.

Raw material availability and pricing currently, are we able to pass on the entire incremental raw material price hike? This is for both the traditional business of films as well as PPF and SCF.

The two questions: availability and ability to pass on the price hike.

Yes. I can tell you that we have been able to pass maximum of it, because IPD product business is normally the consumer are directly affected, we do that, so that is already passed on.

In consumer, it takes time, but with the help of inventory, like everybody knows, it's no secret, the kind of inventory, we get appreciation, and by the time price increase comes, we are good with that. I can say no negative impact of that.

In fact, slight positive impact may be there because of that.

Got it. My last question would be that with the current interest rate going up and inflation also picking up in various geographies where you cater to, do you see any impact in demand anywhere, or are you seeing people postponing downstream products, because this is not an essential cost and more of a discretionary spend?

Sorry. Can you repeat the question, please?

With the current inflationary scenario and interest rate also hiking, do you see any impact on demand or do you see any kind of slowdown coming in from any places, because this is a discretionary spend, after all?

I think the kind of segment we are in, it's not a commodity where people to. You're talking about global warming and this situation?

No, no, no. I'm talking about inflation and interest rate.

Okay.

No,

honestly, whatever is happening is happening in the peak season, that's summer for us, and in that the demand really remains high for us in India for 3 months, 4 months, and in the world it is yet to come. People have started building their thing.

We are not seeing that kind of impact. This can be visible during weak season of Q3, but fortunately for us, all those thing is happening into the peak season, we are not seeing the impact as of now.

The demand is pretty high in this season, and in fact, unfortunately, wherever there is a more buildings coming up, I can't refer directly, but if you really see, there is lot of new construction is going on everywhere including Middle East, so that's a good opportunity for the company. That's why we are focusing more into Middle East.

Got it. In terms of next--

Sure. Our

Hi, thank you for the opportunity. My question was on the TPU line which will go live in October.

Broadly wanted to understand, largely this is backward integration. Have you identified any other products for the 25% which you mentioned will be using apart from the PPF?

Yeah. Question is for the TPU business, right?

Like we said, it will be used 100% into the PPF for the margin improvement. We have built a new team, R&D team, which is working on some products, and we have identified already two products where we will start our first foray from the TPU business, right?

One is the automotive product and one is the architectural product. With these two products, we are definitely will start our sales, which will be because it's starting in the Q3 of this year, in 3-4 months, I think there will be a very minimal revenue.

We will set targets for the next year. These two products definitely we are eyeing on from the start of the TPU business.

If that goes successful, then I see a big potential. Let me tell you, about one of the products is being used widely in USA and Europe market, and not by anybody in India.

That can be a good product for us in architectural segment from TPU.

Thank you. Given you mentioned you're adding capacity on SCF side, what I understand, given your current utilization is 80%, and it will be fully utilized for this year, and the initial capacity is going to come in next year,

which

is close to a 20% capacity, don't you see there's a constraint on capacity to grow, we might need to add SCF line as well,

given

line is also operating at 90%?

Like I gave you the example that the major growth drivers are both, PPF and sun control, the D2C business from Garware Home Solutions growing very fast, and the line size of window films of the sun control line is much bigger than the PPF, right? We can use the fungibility for PPF because it will also be full, and then we will think of how the growth is going.

We are conservative in that, but we are the right capital allocation. The decision was between PPF and window films, and we have taken the decision of window films, lamination line, because the size is much bigger.

It's four times production comes as compared to PPF, all right, because of the speed and all those things. We'll use that fungibility to make more PPF, and here the growth of D2C business, GHS, and architectural, which is going very fast, will be catered directly from sun control line.

That's the rationale behind putting this. Sure.

Just last clarification. What would be the tariffs which we would be paying right now?

Total tariff? I'll explain you.

The original tariff before this administration came was 6.26%, right? That was a standard till last year when it went added 10, then added 25, then added 50.

We'll talk of additional tariffs, which is only 10% now as compared to 50% last year.

So

6.26 is already there, it was always there. 50 was on top of that.

Now only 10 on top of this.

Got it. Thank you so much and all the best.

Yeah. Congratulations on good numbers and thanks for the opportunity.

Sir, my question relates to overall sales you are doing in your own brand, Garware and Global. Sir, you are able to pass on the whole price increase, whole cost increase because of all this raw material price increases, or B2B you may have some agreement, but B2C is a bit of a stretch or it takes some time?

No, actually, honestly, we are able to pass that on, because if you really see, when we talk of our IPD product business, there is almost a big correlation, I can say 45% to 50% directly into these raw materials, which is because of the crude oil, benzene, and all those things. There the market reacts pretty quickly and we were able to pass that, so that was number one.

Number two, when we talk of our consumer products and PPF business, PPF business is really driven by TPU and adhesives and all those things. There the increase was not that big, because they are not directly linked to crude, right?

There the increase was minimal, but still we were able to take our price increase there. Now the third sector is sun control business, which is based on polyester.

There the impact of overall whatever if 100 rupees is increased, is only 10 rupees on the polyester film, because rest of the components are high value addition, on coatings, on adhesives, on nanodispersion, and all those things. There we have seen that correlation going to between I can say approximately 10, 12, or 15% even, and there deliberately we were able to take the price increase on a different-different situation from different-different tools.

Of our overall sales, how much is we are selling in our own brand, Garware and Global?

If we see, roughly 55% goes into own Garware brands and Garware or Global, our brands, and roughly 40% to 45% goes into the private labels, and that may be direct private labels or neutral labels.

Okay. Last question relates to the going quarter.

See, last year, Q1 was impacted because of seasonal rain and also tariff which came up in US. Generally, you said that Q1 is a strong seasonal quarter, but if you see last year, there was a substantial decline from Q4 to Q1.

Generally, Q1 is softer than Q4 or it's equal or better than Q4?

Sir, you answered the question. We say Q1 is the strongest, because our major market is export.

For exports, it's like June, July, August, September, these are the strongest season in US and Europe, right? In such situation, I can say April, May, that is Q1 is the right time for the ordering for us, so that's why it is always a strong season.

In India, this is up to June is the strong season because of heat comes that season, and then rain comes, right? Last year, the situation, this did not happen.

There were two things: one, domestic market, the rain started coming in the month of April end also and beginning of May, and it never stopped, it continued till the monsoon last year; and also the tariff situation made it very uncertain in US for the ordering and everything, right? In this year, we don't see that challenge, you answered your question, sir, on your own.

Great. That's good, sir.

Sir, India, there was--

to

Thank you. Thanks for giving this opportunity and congrats on a great set of numbers.

Sir, my first question is on the SCF, the new capex. How much of this would be for the automotive part and how much of this would be for the Home Solutions if we can expect on this capex, and what would be the asset turnover from this, sir?

Okay. On the new capex, see, let me tell you, this addition is roughly 35% of capacity addition,

right?

If we see GHS, we don't see like from this plant how much it will go into which product line. I'll be very honest with you.

When we put the line, we put the line based on what sale increase we are seeing, that is what is the CAGR where we are going to grow and when I should need the extra capacity. Based on that, current 75% to 80% 75% to 80% will almost finish in Q2 of next year, that's what's the estimate.

Of course, we can do some debottlenecking on the old plants and we will not lose any sales because of that. That's the reason to put the new plant.

Now GHS, we have a separate target where we are talking because volumes won't be great. Like imagine a home.

I'll give you some numbers, like if you really see, our distributor or dealers, the second guy, distributor buys like 5, 7 lakh square feet in a month, and a dealer buys maybe 50,000 square feet or 1 lakh square feet. A home buyer buys like 50 square feet or a 70 square feet.

That number we can cater. The idea to do that, to reach every home means to make that even if that business goes to 20 lakh square feet, which is not even 7-8% of our business, but we will be catering a big part of the country, and the revenue generation can happen anywhere between 50 crore for one year and next year around 200 crore with all the PDLCs and everything.

That is the idea that to make the brand present everywhere and at the same time increase the sales from different-different channels, right? Because if you really see, the company, when we were doing only IPD and CPD in sun control, sun control and IPD, our revenues used to be 750, 800 crore.

Then we strategically increased the CPD business towards architectural business, then we went to 1,300 crore, right? Then we added this PPF business and along with the growth in architectural and normal sun control business, we reached a level of 1,600 crore in FY24, right?

Then with the growth in these two new lines coming and everything, we reached 2,100 crore last year. The idea is our products, when we increase the product basket, it helps us, because when we were not doing PPF, many customers were not coming only for sun control, because it's a basket order.

Now we are doing sun control for automotive, we are doing sun control for architectural, we are doing sun control for safety, security, decoration, and dual reflection, and then we are talking of now architectural in the Home Solutions, and we are adding TPU for architectural and automotive. We are continuously increasing our segment.

Each segment, even if adds 100 to 200 crore value, that will drive our next growth to 2,500, 3,000 crore in this year and next year. That's where we are moving.

Right. Sir, just to follow up, when you say architectural, help me understand on the architectural side, what is the addressable market for us?

I'm so sure we have chalked out an internal plan for us, what is the most attractive for us in the architectural, what geography looks most attractive for us, and help me understand, I know it's a very basic question that I'm asking, Home Solution, what I understand, is a part of architectural, right?

Yes.

Yes. What's the strategy?

Which geography, which products, what's the revenue potential, and what kind of margins if we have internally chalked out for us for next 2-3 years, if you could help me understand that, sir.

See, I'll answer the question in a strategic way, because if I give you numbers, margins, and everything, people who are just eyeing on these things will definitely,

because

everybody works with a strategy, right? We have a strategy in place.

Now to answer your question, I'll give you in a broad level. There is a big market potential in USA where we have made a team from one of the number one competition in USA.

Second biggest market, or I can say fastest growing market even more than USA, is Middle East, because if you see, it's an ideal market for sun control business, because there is a lot of sun and there is no rain and there is hardly any,

right?

The maximum development is happening. That's why two years back, we took the call, we made a strong team there, and the team now working, I can say proudly that one of the segment of Dubai Mall is also done by us.

That's the quality of our product, but it was missing the kind of the team which goes, which has got relation, which has got that kind of drive. We have done that.

Now with that subsidiary there, which is directly working with all because if we are there, we can directly add value to our sales team there. They can definitely take advantage of local things, right?

That market now you can see the growth, we see Middle East and North Africa region is something a big target for us. Then coming back to India, again we made a team which was no focus on automotive, it's fully dedicated for architectural business.

Now architectural business we already did railways, all airports, railways, and then best hospitality chains are working with us, and also some OEMs who redesign your entire home, bathrooms, and everything, we have directly tied up with them, okay? Now next thing is this how to cater to the smaller guys and make a brand, right?

If you go to B2B, they will test your product, they will say forget about it, I will make my brand, your product is outstanding. How do I grow the business of Garware or Global to the end consumer?

That's where the Garware Home Solutions and Garware and Global Application Studios come into picture, right? The product is great, the name is also great.

There the margin will be, like I said, 30%, 40% higher than distributor level, and branding will be there, and at the same time, there the strategy works. There is a separate team.

All the question is you are talking of the TAM, right? Now the TAM in this is we have our targets, we know what it is.

To tell you, we already catering, it's a big segment there, and I think with cheap imports coming from China and Korea, and at the same time products imported from USA. Again, put together, it's tip of the iceberg, because people do not know what the architectural product can do for homes and buildings, right?

Even the owners of many hospitality chains, they were not aware. When I explained them, their eyes were like, 'Oh, really?

That's the thing.' Again, we go to the basics like we did in PPF.

When we entered into PPF market, nobody was even aware what PPF is. We made that structure in India.

More than 50 participants are there importing product or buying from us, selling it. Same way, we are doing into this architectural business via Garware Home Solutions, and we will have the same strategy, guiding people, making those screen, going to hub, big buildings, and builders, making them explain.

This will be done all over India and in the Middle East. That's the strategy for us.

Okay.

In India, it's not just sun control, right? There are more

Yes, that is not only sun control, there will be surface protection films which is for your furniture, which is your kitchen sink and everything, other than sun control, then safety, security films. There will be a switchable film on demand, what we call a privacy on demand, you can make it opaque, transparent, semi-transparent, and so many lots of products are coming into that segment.

Okay. Can I just squeeze in one very small question?

I wanted to ask in last call also if you allow me.

Yes, please. Go ahead.

We were doing something with Vande Bharat. I just want to get an update on that.

Are we doing something for Vande Bharat?

We did during Kumbh Mela. Last year we did a whole train, we are doing.

Okay.

Okay. Thank you.

Thank you for the opportunity and congratulations for a great set of numbers, especially for the entire year we have done phenomenally well. Sir, my first question is on the impact of declining-- I'm

Little louder, please, yes.

Sure, sir. Sir, my first question is on the, the the declining US automotive sales.

If you look at last quarter and even in the month of April, we have seen 5-6% decline in the US new US automotive sales. What can be its impact on our automotive SCF sales as well as, on the PPF sales, because our, majority of the business on the SCF as well as on the PPF comes from US?

If you can elaborate on that and, how it's going to impact us. See,

I think that is quite understandable when the tariff was at peak, we were able to not lose the customer, but in just the same time, the sales were little affected because we were not able to do it freely with 50% of the tariff, right? Now going forward, we don't see any such challenge this year.

In fact, we see good growth potential coming from US market now, because the real challenge has gone from the market. Sure,

sure. Sir, on the PPF side, we have seen a bit of decline in this financial year, and our biggest customer on the PPF is also setting up its own manufacturing plant.

How do you see our relationship with them evolving, and it's a large part of our PPF sales, our sales will be impacted when their manufacturing plant comes online?

No, as I said, I think there is a lot of confusion on that, right? PPF they buy from other sources as well, and they got it manufactured.

Similar exercise they might be doing in future. I'm aware of everything which can say here, but at the same time, I don't see any impact on our business because our growth has been phenomenal.

Our Global and Garware brand, we have doubled what we were doing last year, and we expect that to grow in a steep sky-rocketing in the coming years. We are not bothered with that, right?

Because their volumes we were not supplying 100% to them because they have couple of more suppliers as well, right? I know some of this thing looks like that we are the only supplier or we are too much dependent on them on PPF.

That is not the case.

Our relationship with them will continue?

No, no, definitely. We are into sun control and other business.

See, it's not easy to change the product because our product has got a very unique properties in terms of sun control, and I can tell you with great pride that the product line is very different from what others supply. It's the base film, nanodispersion facility, and our adhesive technology is very unique and very different, and it cannot be changed.

Even if a brand wants to go for manufacturing and replace it, it's not possible, because it is something like a prevailing product. We have discussed that and we are continuing with our relations.

That's for their growth plan for future, but of course we have our plans and we continue to be in great relationship with each other.

Sure. Thank you and wish you all the best.

Thank you.

Please go ahead. This is really a good set of numbers in spite of a very, very tough year.

Just wanted one question in short. One is, how do you see your April volume growth given the summer seems to be better than last year?

See, I think that's a question related to current performance, I would like to avoid. I can only say that we have already given a guidelines for the year for 2,500 crore, we will maintain that, because we cannot answer because this is a quarter ongoing.

It will be beyond the scope of us talking about this right now.

Fine, I understand that. The other question was, when I look at your US volumes, you had said around 45% of your business came from US.

Last year you had said that you had to absorb most of the tariff because you couldn't pass on and you didn't want to penalize your customers. In spite of that you have maintained your margins.

That I just wanted to understand how could that be achieved? 45% of your business taking higher hit on margins.

Yeah. I think we discussed that even each quarter when despite 50% of 50% volume coming from there, 50% tariff, it still maintained because we grew on the other geographies quite handsomely.

At the same time, we we restricted our sales for just to continue without losing customers. That means we held our product in certain special conditions, right, and then in in when it was available, the the tariff went low, at that time we cleared the goods according to the demand from the customer.

It was like very strategically and well-maintained the supply chain, where we were we did not flush the material at the higher tariff. We tried to hold and navigated it through at the at the right time, right?

In fact, when this tariff was to come, we made more material and kept there to avoid the tariff. It was like prior to when we knew it is going to happen, we built our inventory there, and at the same time, we liquidated when it was only it was utmost necessarily to be done, which is at that time, and once it was once it went towards the low tariff and we cleared the goods.

This is like strategy which we followed, which worked.

I think it was a splendid execution. Thanks a lot for the answer and all the best for the current year.

Thank you. Thank you very much.

Thank you, and on behalf of Garware Hi-Tech Films Limited's management, I would like to thank all participants, and we hope we were able to answer all of your queries, and in case of any further explanation required, you can reach out to our IR team. With this, thank you very much, and I wish a great year ahead for everyone.

Thank you.