Garware Hi-Tech Films in Focus After Q3 Results; Board Approves ₹118 Cr Capex
Garware Hi-Tech Films Limited (GHFL), a leading global manufacturer of sun control films, paint protection films, and specialty polyester films, is in the spotlight after announcing its Q3 FY25 results and a ₹118 crore investment in a new TPU extrusion plant.
Stock Performance and Price Movement
During Friday’s trading session, GHFL’s stock experienced a sharp decline, closing at ₹3,383.65 on the BSE, down by 13.4% from its previous close of ₹3,908.75. Despite this dip, the stock has been a multibagger performer, delivering a 113.2% return in the past year and a 40.3% gain over the last six months.
The recent price correction can be attributed to the company’s Q3 FY25 earnings report, which revealed mixed financial performance amid industry challenges.
Q3 FY25 Financial Performance
Garware Hi-Tech Films’ Q3 FY25 financials reflected resilience despite seasonal fluctuations and industry headwinds.
| Financial Metric | Q3 FY25 | QoQ Change | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹466.4 Cr | ▼ 25% (from ₹620.6 Cr) | ▲ 2.8% (from ₹453.6 Cr) |
| Net Profit | ₹60.8 Cr | ▼ 42% (from ₹104.3 Cr) | ▲ 8.8% (from ₹55.88 Cr) |
| EBITDA | ₹93.7 Cr | ▼ (QoQ data not provided) | ▲ 10.7% (from ₹84.6 Cr) |
| EBITDA Margin | 20.1% | ▲ (QoQ data not provided) | ▲ (from 18.6%) |
The company reported revenue of ₹466.4 crores, reflecting a 2.8% YoY increase despite a 25% QoQ decline. Net profit stood at ₹60.8 crores, marking an 8.8% YoY growth, but a 42% drop sequentially.
EBITDA rose 10.7% YoY to ₹93.7 crores, supported by the sale of value-added products, while EBITDA margin expanded to 20.1% from 18.6% in the previous year.
Major Expansion Plans: ₹118 Crore Investment in TPU Extrusion
In a significant development, GHFL’s Board of Directors has approved a ₹118 crore capex to establish a TPU extrusion line at its Waluj Plant in Maharashtra.
Key Highlights of the Expansion:
✅ India’s first-ever TPU extrusion facility
✅ Planned capacity of 360 LSF per year
✅ Expected completion within 18 months
✅ Production to begin by October 2026
This expansion aligns with GHFL’s Make in India initiative and is aimed at supporting the company’s growing Paint Protection Film (PPF) segment. The new facility will seamlessly integrate with GHFL’s existing and upcoming PPF production lines, ensuring cost savings and operational efficiency.
Moreover, this investment will enhance the company’s R&D capabilities and strengthen its value-added product portfolio, further reinforcing its market leadership.
Innovation and Industry Leadership
GHFL continues to push the boundaries of innovation. In Q3 FY25, the company was granted a new patent for Floatable Shrink Film, further consolidating its position as a pioneer in the specialty polyester film industry.
With a strong focus on cutting-edge technology, premium product offerings, and strategic expansion, GHFL remains a dominant player in the global market for sun control films, PPF, and specialty polyester solutions.
About Garware Hi-Tech Films
Garware Hi-Tech Films Limited is a leading manufacturer of high-performance polyester films used in various applications, including:
✔ Sun control window films
✔ Paint protection films (PPF)
✔ Shrink films for labels
✔ Films for LCD & TV screens
✔ Specialized packaging solutions
Final Thoughts
Despite a short-term dip in stock price, GHFL’s robust long-term growth potential remains intact, backed by its strategic investments and product innovations. The upcoming TPU extrusion plant and patent approvals will further boost its competitive edge, making it a compelling player in the specialty films industry.
With a solid track record, steady revenue growth, and innovative product pipeline, Garware Hi-Tech Films continues to shine in the global specialty films sector. Investors should keep an eye on this stock as it navigates industry challenges and capitalizes on future growth opportunities.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.