Results - Analysis
Garware Technical Fibres As on : 06-Aug-26  04:58

On consolidated basis

Quarter ended June 2026 compared with Quarter ended June 2025.

Net sales (including other operating income) of Garware Technical Fibres has increased 31.35% to Rs 482.37 crore.  Sales of Synthetic segment has gone up 41.06% to Rs 380.68 crore (accounting for 77.74% of total sales).  Sales of Fiber & Industrial segment has gone up 4.44% to Rs 109.00 crore (accounting for 22.26% of total sales).  Inter-segment sales rose Rs 7.02 crore to Rs 7.31 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 39.37% to Rs 99.73 crore.  PBIT of Synthetic segment rose 37.63% to Rs 76.41 crore (accounting for 76.62% of total PBIT).  PBIT of Fiber & Industrial segment rose 45.39% to Rs 23.31 crore (accounting for 23.38% of total PBIT).  

PBIT margin of Synthetic segment fell from 20.57% to 20.07%.  PBIT margin of Fiber & Industrial segment rose from 15.36% to 21.39%.  Overall PBIT margin rose from 19.12% to 20.37%.  

Operating profit margin has jumped from 18.55% to 18.68%, leading to 32.25% rise in operating profit to Rs 90.09 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.52% to 26.57%.   Purchase of finished goods cost fell from 7.08% to 4.17%.   Employee cost decreased from 14.41% to 12.97%.   Other expenses rose from 34.04% to 38.14%.   

Other income fell 30.45% to Rs 8.93 crore.  PBIDT rose 22.31% to Rs 99.02 crore.  Provision for interest rose 5.38% to Rs 3.33 crore.  

PBDT rose 22.99% to Rs 95.69 crore.  Provision for depreciation rose 25.91% to Rs 9.33 crore.  

Profit before tax grew 22.69% to Rs 86.36 crore.  Share of profit/loss was 120% higher at Rs 0.11 crore.  Provision for tax was expense of Rs 21.87 crore, compared to Rs 17.3 crore.  Effective tax rate was 25.29% compared to 24.56%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 21.68% to Rs 64.60 crore.  

Promoters' stake was 54.25% as of 30 June 2026 ,compared to 53.00% as of 30 June 2025 .  

 

Full year results analysis.

Net sales (including other operating income) of Garware Technical Fibres has declined 0.74% to Rs 1528.79 crore.  Sales of Synthetic Cordage segment has gone down 4.60% to Rs 1,215.25 crore (accounting for 78.20% of total sales).  Sales of Fiber and Industrial Products & Projects segment has gone up 12.98% to Rs 338.73 crore (accounting for 21.80% of total sales).  Inter-segment sales came down from Rs 33.60 crore to Rs 25.20 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 4.44% to Rs 317.45 crore.  PBIT of Synthetic Cordage segment fell 11.76% to Rs 249.72 crore (accounting for 78.66% of total PBIT).  PBIT of Fiber and Industrial Products & Projects segment rose 37.67% to Rs 67.73 crore (accounting for 21.34% of total PBIT).  

PBIT margin of Synthetic Cordage segment fell from 22.22% to 20.55%.  PBIT margin of Fiber and Industrial Products & Projects segment rose from 16.41% to 19.99%.  Overall PBIT margin fell from 21.11% to 20.43%.  

Operating profit margin has declined from 20.70% to 18.55%, leading to 11.03% decline in operating profit to Rs 283.61 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.31% to 26.07%.   Purchase of finished goods cost rose from 3.54% to 5.60%.   Employee cost increased from 13.78% to 15.05%.   Other expenses fell from 36.88% to 35.25%.   

Other income rose 25.27% to Rs 47.69 crore.  PBIDT fell 7.15% to Rs 331.3 crore.  Provision for interest fell 32.30% to Rs 13.56 crore.  Loan funds declined from Rs 64.86 crore as of 31 March 2025 to Rs 42.82 crore as of 31 March 2026.  Inventories rose to Rs 398.60 crore as of 31 March 2026 from Rs 269.62 crore as of 31 March 2025.  Sundry debtors were lower at Rs 276.68 crore as of 31 March 2026 compared to Rs 316.86 crore as of 31 March 2025.  Cash and bank balance rose to Rs 139.72 crore as of 31 March 2026 from Rs 50.61 crore as of 31 March 2025.  Investments declined from Rs 703.03 crore as of 31 March 2025 to Rs 495.64 crore as of 31 March 2026.  

PBDT fell 5.66% to Rs 317.74 crore.  Provision for depreciation rose 21.56% to Rs 34.45 crore.  Fixed assets increased to Rs 345.80 crore as of 31 March 2026 from Rs 273.62 crore as of 31 March 2025.  Intangible assets increased from Rs 3.34 crore to Rs 74.62 crore.  

Profit before tax down 8.16% to Rs 283.29 crore.  Provision for tax was expense of Rs 70.97 crore, compared to Rs 76.91 crore.  Effective tax rate was 26.32% compared to 24.93%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 14.20% to Rs 198.67 crore.  

Equity capital stood at Rs 99.27 crore as of 31 March 2026 to Rs 99.27 crore as of 31 March 2025.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 53.36% as of 31 March 2026 ,compared to 53.00% as of 31 March 2025 .  

Cash flow from operating activities decreased to Rs 162.07 crore for year ended March 2026 from Rs 196.12 crore for year ended March 2025.  Cash flow used in acquiring fixed assets during the year ended March 2026 stood at Rs 56.38 crore, compared to Rs 43.75 crore during the year ended March 2025.  

Management Commentary:

 

Commenting on the performance Mr. Vayu Garware, CMD, Garware Technical Fibres said 'The Company delivered a strong performance in the first quarter of FY27, achieving '31% growth in revenue compared to the corresponding quarter of the previous year. This growth was primarily driven by the robust performance of the Synthetic Cordage segment, supported by healthy demand across the domestic market, Salmon Aquaculture business, and a return to normal in the USA post tariff disruptions. The Geosynthetics business sustained its strong growth momentum during the quarter and continued to deliver excellent profitability.

 

During the quarter, revenue was impacted by inflationary pressures arising from higher raw material costs and elevated freight rates linked to the continuing Middle East conflict. The Company effectively managed these challenges by passing on the increased costs to customers, though with some time lag.

 

Reflecting the strength of the operating performance, Profit Before Tax (PBT) increased by 23% in Q1 FY27 compared to Q1 FY26.

 

The Company continues to closely monitor the impact of the ongoing Middle East conflict and volatility in raw material prices. Through proactive supply chain management and strategic procurement initiatives, the Company has ensured uninterrupted customer service while maintaining operational resilience.

 

The Company remains committed to its innovation agenda, with new product development and rollout. The Company remains confident of sustaining its growth trajectory and delivering profitable growth in the coming periods.

Garware Technical Fibres : Consolidated Results

Quarter ended Year ended Particulars 202606 202506 Var.(%) 202603 202503 Var.(%) Net Sales (including other operating income) 482.37 367.23 31.35 1,528.79 1,540.11 -0.74 OPM (%) 18.68 18.55 13 bps 18.55 20.70 -215 bps OP 90.09 68.12 32.25 283.61 318.76 -11.03 Other Inc. 8.93 12.84 -30.45 47.69 38.07 25.27 PBIDT 99.02 80.96 22.31 331.30 356.83 -7.15 Interest 3.33 3.16 5.38 13.56 20.03 -32.30 PBDT 95.69 77.80 22.99 317.74 336.80 -5.66 Depreciation 9.33 7.41 25.91 34.45 28.34 21.56 PBT 86.36 70.39 22.69 283.29 308.46 -8.16 Share of Profit/(Loss) from Associates 0.11 0.05 120.00 0.25 -0.01 LP PBT before EO 86.47 70.44 22.76 283.54 308.45 -8.08 EO Income 0 0 - -13.9 0 - PBT after EO 86.47 70.44 22.76 269.64 308.45 -12.58 Taxation 21.87 17.3 26.42 70.97 76.91 -7.72 PAT 64.6 53.14 21.57 198.67 231.54 -14.20 Minority Interest (MI) 0 0.05 - 0 0 - Net profit 64.6 53.09 21.68 198.67 231.54 -14.20 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 64.6 53.09 21.68 198.67 231.54 -14.20 EPS (Rs)* 6.51 5.35 21.68 21.05 23.33 -9.77 * EPS is on current equity of Rs 99.27 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Garware Technical Fibres : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202606 202506 Var.(%) % of (Total) 202603 202503 Var.(%) Sales Synthetic 77.74 380.68 269.88 41.06 78.20 1,215.25 1,273.91 -4.60 Fiber & Industrial 22.26 109.00 104.37 4.44 21.80 338.73 299.80 12.98 Total Reported Sales 100.00 489.69 374.24 30.85 100.00 1,553.98 1,573.72 -1.25 Less: Inter segment revenues   7.31 7.02 4.24   25.20 33.60 -25.02 Net Sales 100.00 482.37 367.23 31.36 100.00 1,528.79 1,540.11 -0.74 PBIT Synthetic 76.62 76.41 55.52 37.63 78.66 249.72 283.01 -11.76 Fiber & Industrial 23.38 23.31 16.03 45.39 21.34 67.73 49.20 37.67 Total PBIT 100.00 99.73 71.56 39.37 100.00 317.45 332.21 -4.44 Less : Interest 3.33 3.16 5.39 13.56 20.03 -32.31 Add: Other un-allcoable -10.04 2.00 PL -34.50 -3.72 -827.80 PBIT Margin(%) Synthetic   20.07 20.57 -50.03   20.55 22.22 -166.71 Fiber & Industrial   21.39 15.36 602.40   19.99 16.41 358.56 PBT 100.00 86.36 70.39 22.68 100.00 269.39 308.46 -12.67

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