Garware Hi-Tech Films Faces Tariff Headwinds and Demand Challenges in Q1 FY26

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Films posted Q1 FY26 revenue of ₹495 crores, up 4.3% YoY, but saw EBITDA drop to ₹123 crores and margins slip to 24.8% from 27.4%. PAT declined to ₹83 crores from ₹88.4 crores as early monsoons dampened domestic demand and U.S. tariffs jumped from 6.25% to 16.25% in April, with another 15% hike from August 7, 2025. While Paint Protection Films grew 28%, SunControl Films fell 7% and Industrial Products dropped 3%. The company holds over ₹700 crores in cash and plans to expand its studio network to 300 by March 2026, though FY26 revenue guidance remains uncertain amid tariff volatility.