Garware Hi-Tech Films Ltd (NSE: GARWARPOLY) Q3 2025 Earnings Call dated Feb. 10, 2025
Corporate Participants:
Deepak Joshi — Director, Sales & Marketing
Abhishek Agarwal — Chief Financial Officer
Analysts:
Vikash Verma — Analyst
Dhwanil Desai — Analyst
Nikhil Kanodia — Analyst
Aditya Rathi — Analyst
Naitik Mohata — Analyst
Unidentified Participant
Rahul Jain — Analyst
Ankush Agarwal — Analyst
Mahesh Bendre — Analyst
Mihir Dhami — Analyst
Sunil Jain — Analyst
Ankur Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, please stay connected. The call will begin shortly. Ladies and gentlemen, please stay connected. The call will begin shortly. Thank you Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Karawal Hi-Tech Flims Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Vikash from Ernst Young. Thank you, and over to you, sir.
Vikash Verma — Analyst
Thank you. Thank you,. Good afternoon, everyone. Welcome to the quarter three and Nine-Month FY ’25 earnings call for Garwari Hi-Tech Films Limited. On behalf of the company, I would like to express our gratitude to each of you joining the call today. To discuss the performance of the company and to answer the questions, we have with us from the company, Mr Ms Aksul, Director Technical; Mr Deepak Joshi, Director of Sales and Marketing; Mr A. Venkataraman, Senior President, Corporate Affairs and Finance; and Mr Abhishek Agarwal, the Chief Financial Officer.
Before we begin, I would like to draw your attention to the fact that today’s discussion may contain forward-looking statements that are subject to various risks, uncertainties and other factors, which will be beyond management’s control. We kindly request that you bear in mind there may be uncertainties, certainties when interpreting such statements. Please note that this conference is being recorded. We will now start the session with an opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I would now like to invite Mr Deepak Joshi to make his opening remarks. Over to you, Mr Deep.
Deepak Joshi — Director, Sales & Marketing
Good afternoon, ladies and gentlemen, and thank you, Vikas, and thank you all for participating in Garwari Hi-Tech Films Limited earnings call for the 3rd-quarter and the nine-month period ending December 31, 2024. We appreciate your continued interest and support. Let me start by providing a brief overview of our financial planning. As we reflect on the 3rd-quarter of FY ’25. We acknowledge the resilience and strategic agility of our company. Following an outstanding performance in the first-half of the year, our performance has demonstrated a stable year-over-year growth trajectory despite the anticipated seasonal softness, which traditionally impacts this quarter.
While we did experience a Q-o-Q decline, this was largely in-line with our expectation given the lower sales of our higher-margin IR products, which are naturally affected by the seasonal fluctuates — fluctuations. Nevertheless, our strategic initiatives and diversified product offerings have allowed us to navigate these seasonal factors effectively, ensuring that our financial outlook and the guidance remains unchanged.
On a consolidated basis, we have reported a revenue of INR466.4 crores and a profit-after-tax of INR60.8 crores for the quarter. Our CPD segment, which is PPF plus Uncontrol saw a slight decline of 7% year-on-year basis. However, our IPD segment grew by 24%, driven by increased penetration in newer markets. Let me take you through our transformation since 2018 towards a niche and value-added product portfolio. In 2018, our revenue was INR874 crores with an EBITDA margin of around 9%.
We have completed and delivered pre-CapEx since 2018, which has helped us to build a portfolio of newer products, which has significantly increased our revenues by approximately 2.5 times and EBITDA margins at 24% based on the nine months FY ’25 on an annualized basis. The fourth capex of additional PPF line is on-track and is expected to be completed by September ’25. Furthermore, we are pleased to announce that the Board of Directors have approved an investment of INR118 crores, which is a first-of-its-kind TPU exclusion line at our plant.
The new TPU is expected to be completed within 18 months with a planned capacity of 360 LSF lakh square feet per annum. Production from this line is set to commence by the end of October ’26 and further strengthening our capabilities and expanding our product offerings. The output from this new line will support the input requirements of both of our existing and upcoming PPF production lines, ensuring seamless integration into our manufacturing process.
This strategic move is expected to yield incremental advantages, including an expanded product portfolio, improved margins and enhance operational efficiency and cost-savings. This initiative not only opens up new pathways for expansion, but also diversifies our growth potential across a range of products in automotive, healthcare and architectural to name a few. Now let me briefly explain our main product lines. Our paint protection film business continues to experience strong demand from key customers in USA, Middle-East and India.
There is a consistent traction in this segment and we are actively enhancing our product offerings and customer experience. We recently introduced two advanced PPF product variants at the Bharat Mobility Global Export 2025 in Delhi. The first is colored PPF, which is a game-changer for Indian Auto and, offering vibrant color options to personalize and protect vehicles like never before. The second is headlight and glass protection, providing advanced solutions to safeguard the brilliance of car lighting systems.
Additionally, we have launched EMI solution with Bajaj Finance, making premium protection films more accessible to Indian car owners through low-cost flexible financing options. We have also introduced PPF Insurance in partnership with Insurance Deco, the first-of-its-kind comprehensive insurance coverage for PPF in India, ensuring long-term stress-free utilization. With these developments, we continue to expand our offerings, strengthen our market presence and enhance customer satisfaction.
We are quite confident of continuous growth and are making provisions accordingly by addressing certain debottlenecking measures and considering further growth plans. Now, I would like to take you to our Sun Control fins. On SCF business, we experienced 15% year-on-year growth in revenues. This growth is attributed to the expansion of our architectural business. We expect this positive trend to continue, further supported by the introduction of innovative products for the auto sector and new grades in the architectural and decorative film segment.
We continue to receive significant interest at various exports and trade shows we participated in, which indicates strong potential for both our existing and newly introduced product lines. Now, lastly, I would like to talk about the industrial product business. The IPD segment has grown by 24% Y-o-Y basis, supported by strong demand for specialty films such as leading films, PCR and shrink films. We remain focused on the future of this value-added segment. We have also secured a patent for our innovative floatable shrink, reinforcing our position as industry innovators and leaders.
Our strategy includes expanding the specialty segment, improving capacity utilization and enhancing operational efficiency. These initiatives will help us strengthen our market presence and further drive profitability for the IPD business. We actively work on expanding our team by bringing in resources from across the world, participating in key industry events and increasing our digital media presence globally.
We are also proud to share that this quarter gone by, we were awarded the winner in packaging and allied activities by Turn and Bread Street, further reinforcing our excellence. Looking ahead, we are confident in our ability to build-on the progress we have made and we continue to afford the forecast we previously communicated. Our surplus cash reserves are being strategically deployed to fuel the next phase of growth with our recent announced capital expenditure expected to mirror the trumps of our past capital investments.
As market — as market demand remains steady and our strategic innovation initiatives take shape, we are by a robust product lineup, strategic investment and targeted efforts to broaden our market reach. With these in-place, we are hopeful of realizing improved performance in the forthcoming quarters. Thank you once again for your time today and for your continued trust in Garwari High-Tech Limited.
With this, I now request Mr Abhishek Agrawal, our CFO, to take us through the highlights of the financial performance. Over to you, Abhishek.
Abhishek Agarwal — Chief Financial Officer
Deepak, and good afternoon to everybody on the call. So start with our financials for Q3 FY ’25. The consolidated revenue was INR466.4 crores, this is a 2.8% growth over the previous year-on-year number of 453 while our nine months ended December 31, the revenue stood at INR1,561 CR, marking a 27% year-on-year growth from 1230 CR to the nine months of FY ’24. This growth was attained or sustained was driven by sustained demand across our key business segments.
Despite industry headwinds like geopolitical tensions, supply-chain disruptions, we have delivered a steady performance and a strong EBITDA for Q1 FY ’25 — Q3 FY ’25, which is now at — standing at INR93.7 crores, an increase of 10.7% over INR84.6 crores of the previous year. On a nine-month basis, my EBITDA stood at INR374 crores, registering a 61.7% growth compared to INR231 crores in the Nine-Month of FY ’24.
This improvement reflects the positive impact of our high-value product mix, deeper market penetration and continued operational efficiencies. On the PBT side, the Q3 FY ’25 stood at INR81 crores and again reflecting 11% increase from INR73 crores of Q3 FY ’24, while for the Nine-Month FY ’25, PBT stood at INR336.7 crores, marking a 75.2% — 75.2% year-on-year growth from INR192 crores. On the PAT front, our Q3 FY ’25 number is at INR60.8 crores, up 11% against INR55.9 crores in Q3 FY ’24.
While for the Nine-Month FY ’25, PAT stood at INR36.7 crores, reflecting a 75% — 75% growth over INR192.2 crores in nine months of FY ’24. Exports will continue to be a strong contributor comprising approximately 74% to our performance with value-added products compromising — comprising 85% of product mix and playing a key role in our global expansion. Our financial position remains strong and we are pleased to report that we have a cash surplus of by INR72 crores as of 31st December 2024.
We continue to remain net-debt posit — zero-debt to net-debt positioning us well to advance our strategic projects. The newly announced capital expenditure for the TPU extrusion line is expected to drive operational improvements and enhance our profitability indicators. And given our strong cash flows, we will fund this expansion through internal accruals. Looking ahead, we are confident that our efforts will continue to drive measurable improvements in financial performance. With this, I turn — I will turn the call over to the moderator for the Q&A session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Dhwanil Desai from Capital. Please go-ahead.
Dhwanil Desai
Hi, good morning, everyone, and congratulations for a steady set of numbers. So my first question is, I think as you indicated this was a seasonally soft quarter. But going into Q4, how do you see the demand, especially given the overhang of tariff backdrop that is happening, control side, I think February, March when we start doing the shipments. So you know, what are you hearing from your customers and has anything changed since our last interaction? And going into FY ’26, I think we were looking at INR2,500 crore kind of a number. So are we still on course to do that. So if you can talk a bit about that. Thank you.
Deepak Joshi
Yeah. So thanks for your question. Like I said in the opening remark, the guidance for this financial year and next financial year remains unchanged. We are very confident that we are going to meet the guidance given previously. And as we speak about the tariffs, so as of now, it is like a — we are hearing lot of things and we are continuously in touch with our customers. So I mean, given the government initiative to reduce the tariff for the goods like Harley-Davidson and all those things, which was actually discussed during the — during the campaign of Mr Trump, that has been lowered and we hope like upcoming visit between the countries will subside the risk.
Worst — in the worst phase, if I say like worst-case scenario, there can be a counter of reciprocal tariff, which does not affect much because it’s hardly 2% to 3% difference. I would like to reinforce one thing that the duty on our neighbors China is around 35% now vis-a-vis our duty stands at 6.6%. So we have a lot of headroom available in US market and we are treating it as an opportunity for us and our entire sales force and the team works to get the advantage of this scenarios.
Dhwanil Desai
Very good to hear. Thanks,. Sir, second question is, I think we have indicated that you know our margins will remain 25% plus or minus 3%. I think this quarter we are lower than that range maybe because of the seasonal fluctuation. And I also see that even on a year-on-year basis, the commodity mix has increased significantly. So anything to read into this? And as we bounce-back on revenue, are we kind of on course to do that 25% plus or minus 3% range on the margin side?
Deepak Joshi
Yes. As you rightly indicated, like Q3, as we stated in our previous calls that the highest-margin product for us is Sun Control, especially Sun Control IR films, which goes to its minimum in Q3. So that’s how the margins were lower in the previous quarter. But if you see Nine-Month numbers, we are still at 24%, which is a very healthy sign as compared to the past. And Q4, we expect to maintain these kind of numbers. So we are very well on course. I mean, all the guidelines have been given, which are still valid, no change in that.
Dhwanil Desai
Thank you. And one more question on the..
Operator
— to interrupt, sir.
Dhwanil Desai
Okay. I’ll come back-in the queue.
Operator
Thank you. Ladies and gentlemen, please limit your questions to two per participants as there are several people waiting for their turn. The next question is from the line of Nikhil Kanodia from Monaj Networth Capital. Please go-ahead.
Nikhil Kanodia
Hello. Good afternoon, sir, and congratulations on a decent set of numbers. I had a question on the TPU capex that you have announced.
Deepak Joshi
So yes, please.
Nikhil Kanodia
Yeah. So sir, number-one, you said it in the press release that it is to be incurred in within a span of 33 months. So if you can give us some yearly guidance on the capex that will be incurred for this facility as well as the upcoming PPF facility? That’s number-one. And number two, so I like from the understanding point-of-view, so this TQ will be kind of a raw-material for your PPF, right?
Deepak Joshi
Yes.
Nikhil Kanodia
So how much benefit is it going to give you in terms of cost and also like the capacity that we have for PPF will be around 600 LSF and this is around 360 LSF. So what sort of ratio will be having going ahead like when it comes to raw-material procurement from internal sources and from the open-market?
Deepak Joshi
Yeah. So first of all, on the capex, which we have announced, it is INR118 crore, that is total and to be spread over 18 months, right? So it will be more towards last six months because we make provisions with our LCs and all those things. So maximum spend happens the — in next year, right? So now going to how it will benefit. So it is going to — it is going to be the backbone of — it is going to be the backbone of the PPF lines, which we have.
As if you see, the real strength of the company is for all it’s a backward integration, right, from petrochemicals to chips to films to our nano dispersion or making our own adacive and top cores. So this was the only point missing in PPF. It makes us very value proposition in the market. And another thing, it will add lot of innovations for the new product developments as the market wants continuously innovation with this, I mean, we can do all those our in-house testing and new product developments within three months in the field of PPF and some of the architectural segment.
So this line, first of all, it will be a cost-saving for the PPF. Second thing, it will add to R&D developments and it will open up new product portfolio for the company, which we will disclose at the coming quarters. But right now, the thing is there are like many segments which we are targeting with that because if you really see our products like we — Garware was the first company who brought the films in India, then we were the first one to do sun control films and paint protection films.
And now with this innovation, it will be a backbone for our PPS. At the same time, we will venture into new product portfolio with this line, right? So I hope I have answered if anything missed in your question, sorry, you can ask again.
Nikhil Kanodia
Yeah. So one thing that I asked is the capacity is around 360 LSF for this CPU plan, right? And the existing plus upcoming PPF facility, we have around 600 LSF capacity.
Deepak Joshi
Yes.
Nikhil Kanodia
So in that sense, like if we take like one is to one conversion ratio, so like what — like I just wanted some sense on the — like…
Deepak Joshi
Yeah. So it will be sufficient as you rightly pointed out for one-line as of now. So it gives us, you know, us going-forward with this, I mean this will be sufficient for one-line only. So we will use 100% capacity for that. As I said, we will keep some provision for the new product developments in the different segments.
And going-forward, like if everything permits the way we are growing, I’m happy to announce here that this is fifth of its kind of announcement. We have done four capex till-date in a short period of last four years from PPF Line 1 and then Sun Controlled and metalizing and PPF line number two is still on course for September ’25. So — and this new capex will come on October 26.
But the point here is the company has turned around its top-line and bottom-line significantly with the addition of capex, right? So this capex is putting us into a strong value addition for our PPF and of course, opening up new foray into different product lines. So to answer your questions, yes, it will be like 50% of our existing requirement and 50% we will continue to source.And we will look into further expansion depending on the situation going ahead.
Nikhil Kanodia
Okay. Okay. And sir, with the nine months, I guess, for the Q4, the asked is around at the PAT level of around INR80 crores. So we — like while you said that at the annual level, you will be able to do what you have guided earlier. So I guess — so with INR80 crores ask for the Q4, like are we still confident in that sense?
Deepak Joshi
You mean revenue guidelines for the year?
Nikhil Kanodia
Pat.
Deepak Joshi
Pat guidelines. Yes, we — we are — I mean, if you see like we have shown a 75% growth in nine-month basis. Q3 being always as stated is like a lowest possible season for us. We are — we will do definitely on course to do good in Q4. So the guidelines remain intact. We are confident of achieving that. Okay, sir. Those were my questions for now. Just in case if I have any other questions, I’ll rejoin the queue. Thank you and best of luck for the future.
Operator
Thank you. The next question is from the line of Aditya Rathi from Investments. Please go-ahead.
Aditya Rathi
Hello. Good afternoon, sir. Thank you for the opportunity. Sir, I wanted to know more about the impact that we could face because of the US. I know you just mentioned it, but if you could just show some more light on that.
Deepak Joshi
Yeah. See, as I said, the tariff, first of all, there — the tariff which is announced has been favorable to us because it is on China, right? The 25% goes to 35%, right, where vis-a-vis our number is quite low, like as we speak in the current situation. Then government of India has already started taking proactive actions, that means reducing the imports from USA, right?
So it was like a point of very well — I mean this is a geopolitical discussion, but we are keeping a very close eye on that through our customers and our consultants, right? In — what in worst-case scenario also, we seem to be benefited from this situation.
Aditya Rathi
Sir, will this lead to any margin contraction for us from the export side?
Deepak Joshi
Yes, it will depend on how much is the duty. As I said, in the worst-case scenario, it will — it can impact 2% to 3% only. But if you see the duty put on other countries, including China and the possible talks about EU and all, they are coming ahead of — I mean, they are in the list of prior to prior to India.
So this any case is going to benefit us rather than giving a negative impact to that because there may be an opportunity for price increase because right now, it’s uncertain, right? It can go anywhere around. If we talk of present situation, it’s good for us. If we talk of a duty, which is like exactly same reciprocating the duty, we are going to get benefited.
So we are very positive about that and we are working to get the maximum advantage of the situation. Despite, I mean it goes even the worst-case, we see we have a strategy and we are doing good with that.
Aditya Rathi
Okay, okay. Sir, my second question, last question is also on the same line exports from Latin-America. If you could throw some line, I think we are seeing subdued growth in that — from that area
Deepak Joshi
From Latin-America. So you know, Latin-America, I mean, if you talk of the company’s strategy, we added a resource in last quarter to fuel the growth because Latin-America is a very big area where we wanted to increase the presence. Let me tell you one thing, like we have kind of going — growing very fast.
We have been growing in USA and other parts and India. So we have now targeted the areas where we were little, you know, lacking because of our distance and all those things at the same time of resources and different languages. So we have hired another resource in that area to fuel the growth for South American market, Latin-America. So we are very cognizant of the fact that we need to grow continuously. So all those territories where we have not been present or present lower than what we anticipated. We are doing everything to grow there.
Aditya Rathi
Okay. Thank you, sir. Thank you so much. That’s it from my. Thank you very much.
Operator
The next question is from the line of Netak Mohata from Sequen Investments. Please go-ahead.
Naitik Mohata
Hello, sir, can you hear me?
Deepak Joshi
Yes.
Naitik Mohata
Sir, I just want to understand what was the guidance for FY ’25 and ’26? Also, I, I mean, you did mention that the commodity mix has increased on year-on-year basis like when compared to the Q3 of the previous year. But is there any particular reason?
Deepak Joshi
So the guidance given for FY ’26 was INR2,500 crore that we maintain the same guidance. I mean, we definitely meet that. And into — if we see the nine-month results, we are on course to cross like a won’t mention the number, but the INR2,000 crore-plus guidance was more or less given. So that we are going to achieve.
Naitik Mohata
Okay, sir. And what about the commodity mix?
Deepak Joshi
Yeah. So commodity, you know, this all — if you really see the Q — our number-one product and the highest revenue and profitability earner is Sun Control Films. And Q3 because of the lower demand and the seasonality, mainly because of seasonality. The other portion seems to be like industrial product and commodity seems to be up.
But we expect overall, let us look at the growth on annual basis and because this will always happen, like sometimes more inventory goes to the market and then we see a little lower in the next quarter. But if you see year-on-year basis, our guidance remains the same and our growth will come from Consumer Product division and we are very confident of that.
And that’s why the — and having said that, on industrial products, we have made like significant progress towards shrink films and we just took an patent — we got the patent for floatable shrink films. Similarly, there are more efforts are being put into that direction and leading being a very, very strong growth area for us, which will drive our business to North-America and South America.
So we put all the efforts to the specialty even in the Industrial Product segment and the number which looked little up-and-down for commodities, it will — it is only because of a quarter three being seasonally low for sun control controls. That’s the only reason.
Naitik Mohata
Okay. Thank you.
Operator
The next question is from the line of Pratam from Quantum AMC. Please go-ahead. Hello, Sir. Your line audible. It is little low. If you can speak little louder, sir, please.
Unidentified Participant
Okay. So yeah, hi. First of all, congratulations on the numbers. I had a question from the competition side. So one of your competitors has introduced the PPF product in the Indian markets. So what kind of impact are we seeing on our business
Deepak Joshi
Yeah. So first of all, I mean, if we are — if you are referring to the — that I mean that company, I can say that we have announced like we are manufacturing PPF with line number-one and we declared when it was commissioned and grown. And now second-line, which is coming on in September ’25, right?
So I didn’t hear any such announcement that there is a manufacturing facility in India. Just please if you relaunched, there are already 10 products launched in India, right? So — but we need to really aware of the fact whether those who are launching are the manufacturers, right?
So I’ll tell only this much here. Now if you talk of our position, we make our own PPF and we make all four components by ourselves. And with the announcement of EPU, we are going to go very strong in that, right? And with the launch of colored PPF series, headlight, taillight and then with Bajaj Finance and of course, with insurance, like we have been targeting the market in a very strong way and we are doing everything possible to remain the forefront of this.
And our technical capabilities are also very strong and superior. And lastly, whoever has been doing this in India is actually our major market, 80%, 85% is export-driven. And in the export market, the customers are very, you know, technically very superior. They want to know each and every component where it has been manufactured. So having all said that, I think I have been able to answer your question.
Unidentified Participant
Okay. Thank you. That’s from my side. Thank you very much.
Operator
The next question is from the line of Rahul Jain from Credence Wealth. Please go-ahead.
Rahul Jain
Hello. Thanks for the opportunity, sir. Sir, my first question is with regards to FY ’25 numbers which you spoke. So the way — and you had guided earlier also that quarter three will be a seasonally soft quarter, but we will see a good improvement from quarter-four because of seasonality effect as well as the preparation for the coming season. So can we expect some 15% to 18% growth for this quarter, March quarter on a year-on-year or a quarter-on-quarter basis.
Deepak Joshi
Yeah. I think we will do much better than that, right, on quarter-on-quarter basis will be a very strong growth and there will be a strong growth as Y-o-Y basis also. And we’ll meet the guidance of INR2,000 plus crore and on-top line and bottom-line. So we are on-track. And as I said, it will be a good growth, more than what you are saying. It will be stronger than that.
Rahul Jain
That’s nice to hear, sir. And sir, secondly, with regards to the inquiries, we’ve been talking to customers since our PPF line would be coming in September and also the fact that compared to the first-line, I’m sure this time in terms of quality, in terms of the initial processes, which be much lower. So how do you see the second-line ramping-up in what time-frame?
Deepak Joshi
Yeah. So I mean, we expect this will be like running for six months and within one or the timeline given for that is September ’25. So it will be like very quick to adopt like a high — I mean a high-quality products that is A-grade product. But looking into — we would like to be conservative in terms of adding their revenues.
So you can say it will be utilized 50% to 75% conservatively for six months. But it will — in terms of technicality and all, it will be very — I mean, it will be up and running very fast. From September ’25 onwards within a month, it will be like — I mean, it can give 100% revenues, but depending on the market and all those factors, we will be like able to generate a more than our guidance what we have given.
Rahul Jain
So I have couple of questions more, but I’ll come back-in the queue. Thank you so much. Thank you.
Operator
Thank you very much. The next question is from the line of Ankush Agarwal from Search Capital. Please go ahead.
Ankush Agarwal
Yeah. Hi, sir. Thank you for taking my questions. Sir, first question is around growth. I mean, it is understandable that seasonally Q3 in the 4th-quarter and there are seasonality in terms of inventory. But what I’m trying to understand is the growth that we have given this quarter versus the commentary that we had in Q2.
So the commentary was sort of indicated in the Q2 con-call was that we are looking for a better sequential number. If not in Q3, then Q4, definitely we expect sequential growth. But compared to that, I mean, the expectation overall was that Q3 would be maybe a similar quarter number compared to Q2 was slightly lower, but it’s a much larger degrowth.
So just wanted to understand where the things have gone wrong versus the commentary. I mean, seasonally it is pretty understandable in the business, but I think the commentary was very different from what we have delivered during the quarter.
Deepak Joshi
Okay. See, like we said in that, I mean, we never declared that sequentially Q3 will be better than Q2. It is — I mean, it was not never mentioned, right? It was always said that Q3 numbers because it’s a seasonally low, right, it will be not as great as Q2, Q1 and Q2, right? And if you see Y-o-Y basis, we have closed close to 10% growth on-bottom line, right?
And see, again, I will say our these — our business model is very different in terms of seasonality and the sale, right? Our real sale happens from our warehouses in USA to our customers. That comes — that is recorded as a consolidated, right? So if you really see our quarter-on-quarter variations and all those things are not really what we are looking for.
We are looking — we are looking for a long-term growth. We are looking for a year-on-year growth basis and we are on course with that. I mean, nobody can predict like what will happen to this month-to next one because sometimes more inventory goes, then you will see the sale drop-in the next month.
So overall, if you really see, we have shown an outstanding growth. In nine months, if you see, it’s 75% growth over last year. So just on the bottom-line. So I think that’s a remarkable thing what we have done. And we are giving the guidance for the whole year also similar kind of growth.
So I mean quarter-on-quarter sometimes because when it is lean, we don’t know-how much lean it would be, plus there are so much of the — I mean, uncertainty in terms of geographical tensions, despite the fact that we are quite confident and there is nothing wrong in all those things. So I mean I can say that the growth on like annual performance and everything is going to remain robust.
Ankush Agarwal
Okay. Got it. So the second question is on the PPF business and our dependence on one of the largest customer updates out of US. You sort of commented on the previous question also that you are looking to limit our dependability on the customer, maybe you would not try to sell the entire second capacity to them.
And I mean, it’s sort of visible also in the quarterly variation that we have in the PPF. So if you can give some color how much of our business is dependent on that customer for the PPF line and also solar control also because I think that company has also started doing window films quite big.
Deepak Joshi
So see, in terms of a customer, we never discuss that thing because it is a confidentiality agreement between the companies, right? So I’m unable to comment anything on that. However, like we have given the guidance, our growth and everything is intact. If you really see, again, please see the numbers and everything, there is no change in that.
Sometimes one customer may buy more in a quarter and then he sees lower sale-in automotive and all those things, it can go up-and-down. So I can’t really comment on a particular customer, right? We have many such customers who are big enough to like go here and there.But overall, we are quite well as portfolio. And so that’s why I would not like to comment, right? But what was the second question about window films?
Ankush Agarwal
No, I think that customer has also started doing window films in the last few years and they are actually doing very well on that as well. So I wanted to understand if we have certain dependence on SCF side also with that customer. But I can understand that it could be difficult for you to answer the question, okay.
Deepak Joshi
Is it dependence is good or bad? I mean it’s like if some reputed customer comes to us, we take it as a pride. But we always — see, if you really see when we talk of like we export to more than 100 countries, that means we have presence everywhere into the market, right? So we do not talk of one particular customer. I mean, if you really see internally, we have quite well spread portfolio on window films as well and we are very strong. In fact, I’ll just give you the forumer number that we — last year we made a separate team for domestic architectural business.
And I’m happy to announce that this — the — this team has performed so well because we made an entire new team with a new team leader. So it has performed in the architectural domestic market two times growth as compared to last year. If we see in the nine-month data, he has gone too. So we understand the growth with the you know in the areas where we have not grown. So nothing stops us from any customer or anybody from growing our own. So same thing we are now replicating in US market where we have hired a very senior team leader to make the similar team what we have done in India, we will replicate the same architectural business in USA.
So we are thinking on a very different parameter than you are considering, like we are growing to backward integration, we are going into new products, colors and all. We will now looking into venturing into architectural more than the polyester, we will also be doing lot with the TPU and all. So our vision is to grow everywhere in the world, the customers who are welcome as a big customers and all. But at the same time, we have very strong team, which is growing further through all geographies and all product portfolio.
Ankush Agarwal
Okay. That was helpful. Thank you. Thank you very much.
Operator
Thanks. The next question is from the line of Mahesh from LIC Mutual Funds. Please go-ahead.
Mahesh Bendre
Hi, sir. Thank you so much for the opportunity. Sir, just wanted to know what was the contribution from Sun Control Film and PPF for the current quarter.
Deepak Joshi
Yeah so we had a decent growth on Sun Control as compared to previous year, even though it was a — basically market or is not a great time to have it. We grew almost like 20% in Sun Control. And PPS we — because of seasonal factor, there was there was a little drop on PPF and there was a 50% to 20% growth on Sun Control numbers. And those numbers are again because of the inventory adjustment because people carry their product in our warehouses. So the sale from warehouses expected always to be better in Q4.
And of course, Q1 goes to be very stronger. So now another factor is there is some duty which is refunded to US customers. So it usually starts picking off of, I mean, February second-half because of those refunds. So sale from our warehouse in US, which is actually recorded as a consolidated performance, that starts picking-up of second-half of February onwards.
Mahesh Bendre
Okay. And sir, you spoke about the achieving INR2,500 crores of sales in FY ’26, which is like a 20% kind of growth, 20% growth over FY ’25. So if we have to look for FY ’27, given our second-line for PPF is also coming up by this year end. So we’ll be able to continue similar performance in FY ’27?
Deepak Joshi
Yes. We expect top-line growth of 20% to 25% on-top line. And bottom-line, as we said, like we focus on mainly on the operating margins, which you can see they are continuously going up like I shared the journey from 2018 where we were mostly the commoditized and our operating margin was only 9%.
As we speak, nine-month number are 24%, right? So these numbers, all the growth is now coming from a specialty segment, right? So with the PPF growing more and then TPU coming on-stream, on a longer-term also we expect that top-line growth like I shared 22% to 25% on a bottom-line also, we see a consistent growth with operating margin increasing slowly and slowly.
Mahesh Bendre
Sure. And sir, we are setting up a new facility for backward integration. So this add to our margins in terms of any benefit to us in terms of — at a gross margin level?
Deepak Joshi
Yeah. We expect the growth of — because PPF business as a whole will benefit in terms of profit margins. So I can say overall company-level, if we talk of current revenues, like definitely the revenues are going to go up. We expect around 1.5% to 2% improvement in the gross margin — operating margins.
Mahesh Bendre
Okay. Okay. And sir, last question from my end is, now rupee has depreciated from INR84 to INR88 almost. And our 75% export is — I mean 75% of our sales is exported. So will we get the benefit in terms of this rupee depreciation or is it that this rupee depreciation benefit is passed on to customers?
Deepak Joshi
No, definitely not, because what happens is for our — if I say there is lot of imports as well, which is definitely going to go down with further backward integration, right? So balance advantage goes to company. I mean a customer we don’t discuss that because what happens is when it appreciates, then we have to ask. So it is understood that the sale is in US dollars, so that continues to be like that. I mean it is not passed on, because for them, it’s like a US dollar purchase, which continues to be at that level.
However, we gain quite strong with the exchange rate, but at the same time, sometimes we have to give some benefit to customers, not in terms of you know as a benefit pass-on, but if other currency also depreciate in the similar way, then they feel a lot of pressure on prices with the competitors. So we make minor adjustments in that case. But overall, in a nutshell, that is not passed.
Mahesh Bendre
Okay. So if I have to put these two things together, I mean the backward integration benefit of 1.5% to 2% at the gross margin and plus depreciation benefit, if at all comes. So this can significantly take our margins up by maybe 25% kind of stuff.
Deepak Joshi
Yes. You are right. I mean it depends on how things unfold in future, but I mean as a principally, logically, you are right. I agree with that.
Mahesh Bendre
Yeah, because I’m leaving aside the operating leverage benefit. That is a different part.
Abhishek Agarwal
No, no, definitely. You’re right. This is — this happens. Now one thing I would like to add is cost optimization benefit benefits where we are certain because we are putting up a plant for INR118 crores. But as far as rupee depreciation, we are not sure because these are all fluctuating every month we might be noticing. So we are not sure about at this point of time.
To answer your question, definitely the margin improvement what we discussed about 1% to 1.5% on the cost optimization project what we are going to put up INR118 crores, that is the tech.
Mahesh Bendre
Okay. Yeah. Thank you. Sure. Thank you. Thank you so much, sir.
Operator
Thank you. The next question is from the line of Aman from Astute Investment Management. Please go-ahead.
Unidentified Participant
Yeah. Good afternoon, sir. My first question is on this FCF and PPF business. So we did quite well in Q1 and Q2 and Q3 obviously we expected was a lean season. But in — do we expect that number Q1 and Q2 sales to cross in Q4 in terms of SCF or PPF or it will cross it those numbers in Q1 next year?
Deepak Joshi
See, yeah, like as you mentioned, Q1 will be relative to-Q1 last year because Y-o-Y is very important because of the nature of the business. So we expect the repeat performance — better performance in-going forward because if we talk of current year guidance of INR2,000 crore and next year’s guidance of INR2,500 crores. So definitely that will improve on a Y-o-Y basis. These numbers for Q1, Q2, Q3 and Q4 obviously. And going to Q4 versus last year Q4, definitely we are going to see a strong growth over that.
Unidentified Participant
Just on that part, I’m still not sure. So Q1, Q2 was very, very good growth. So those numbers you don’t think we’ll repeat in Q4, mostly we’ll repeat those numbers in Q1 next year.
Deepak Joshi
I’m not saying no. I mean, we will be close to those numbers.
Unidentified Participant
Okay. Okay. That will be helpful. Close to those. Second question is on architectural films as well as TPF film, which is in domestic market. So architectural film, if you can talk about the upgrade, what kind of growth are we seeing? It was very good in the nine months, but do you expect the same growth to happen in the Q4 as well as next year FY ’26? And samely, if you can talk about domestic PPS business. Could this new products like EMI and insurance and all, do you see a good uptick in this canvas become like a INR200 crore INR300 crore business for us in next two, three years, domestic PPS.
Deepak Joshi
Yeah. So one-by-one. The first question is to architectural growth. Yes, as I said, I mean, there has been a whole new team has been set-up and product portfolio has been completed to see this kind of growth, which is double in architectural in the domestic market. So this growth is going to continue because we still talking to very big names in the industry who has started procuring our products because I would say we have created some of the market to do for the same.
Like we did in PPF, we are doing in some — I mean, architectural films as well. We are creating some markets. So we expect at least next two to three years now we are seeing very strong growth on architectural in India. Now architecture in America, like I said, we have set-up similar — the success story of India. We are going to now test in America when the team leader has been hired from a top company in US and he is setting up his team and is on-the-ground already to take this business to next level.
So that is again — we are seeing quite good opportunities there and we are hopeful that we will continue to show strong performance of architectural films, both in India and export market as well. Now secondly, on to the PPM, right? We have grown from, I mean, very low-base to the numbers which we are seeing now.
And that growth will continue now with new set of you know, initiatives for the domestic market where we have given an opportunity for financing their PPF. For example, our titanium, which is priced at around INR1.5 lakh per car, right. So that can be almost at no interest cost or at a very, very low number that customers can take advantage of EMI for 15 to 18 months and then it becomes more affordable, right?
So we are seeing very good growth, I mean, very good inquiries from our customers, our application studios to start that thing. So it is already launched and now the data is being exchanged. So this will definitely see growth pattern in the domestic market. And with the colors and all, we are seeing a lot of opportunity where even the market which is secondary cars and all are asking for these products in a good amount.
So we expect a very good growth of PPF in the domestic market. And domestic market, if we really see on CPD, Sun Controls for PPF, we are seeing 60% to 70% growth. On architecture, we are seeing almost 100% growth. On other part, we are expecting you know, we are doing like 50% to 60% growth on the domestic market.
And at least for next two, three years, this will continue because again, we are seeing a market which is close to 2% of PPF penetration, whereas we can target 10% of that. So this all is like, again, we are not working on one particular area or one particular product. We are working as a whole to entire geographies, domestic and export market and with a very different product-line, which will give us very good results in-going forward in future.
Unidentified Participant
Yeah. Thank you. Just given we are talking about generating INR300 crores, INR400 crore kind of cash each year now don’t you think this is a good time for that special dividend or buyback, which we were planning because we have a lot of cash available. So what are your views on that?
Deepak Joshi
Yeah. See, again, you know, when let me just highlight one thing that TPU plant which we have put, just I’m giving an example, for we — this is the fifth of its capex in last four years, right? So this capex is taking us to a very different route. It is a first of its a kind extrusion facility in India, TPU extrusion facility and that will open up a lot of avenues for new product lines and everything, which will add the value.
I’m again going back to the table where we said like from 2018, 9% of our operating margin, we are not standing at 24%, right? And we are putting all efforts to increase that valuation to us, right? So this — all the deployment will take-in due course. Right now, we are finding a very strong path in our growth trajectory. So we’ll decide in due course. Maybe we can definitely look into like cash surplus into a growth of the new product lines and new plants.
Unidentified Participant
Okay, thank you. Thank you very much.
Operator
The next question is from the line of Ankit Gupta from Bamboo Capital. Please go-ahead.
Unidentified Participant
Yeah. Thanks for the opportunity. Sir, you know SCF, we have seen significant growth in this nine months. And given we had a very-high base of PPF last year, it seems that you know on a nine-month basis, PPS growth has been significantly lower, we might have actually degrown in PPS. So if you can indicate how much has been the growth or degrowth or degrowth in PPS in nine months of this financial year.
Deepak Joshi
So see we have definitely grown in nine months for PPF. Let me give you an example. Q2 has been the highest-ever sale for PPF, right? So now for nine months, definitely, we have grown quite big in in PPF, right? Yeah. So if I tell you the number like it has grown by 20% in nine months. I was just looking at the data, sorry. So nine months, we have grown by 20% in PPF.
That’s why you are seeing up like on the bottom-line, you are seeing a 75% growth, right? On the top-line, we are seeing a very strong growth of the company and that is actually led by Sun Control PPF and of course, IPD has also contributed. So, I mean I gave you the number like we have grown 20% on PPF only in nine months.
Unidentified Participant
Okay. Okay, okay. And sir, on the — on the geography front, you know, like how is India performing because India revenues as you give the breakup, we used to do somewhere around INR110 crores, crores INR120 crores on a quarterly basis. And even if I look at Q3 of last year, we did almost INR103 crores.
And compared to that, if and we have done almost INR82 crore of revenues in Q3. So is it the commodity side, which has been doing or we are seeing some challenges in performance on our PPF and FCF sales in the domestic market through our own studios and through other distributors as well?
Deepak Joshi
Sorry, so the question is where the growth has come in the domestic market?
Unidentified Participant
Actually, domestic is that there has been some degrowth which has happened in the domestic markets. Earlier we used to do almost INR110 crores INR116 crores we did in last quarter and as per the presentation of Q3 last year, we did almost INR103 crore in Q3 FY ’24. So compared to that, we have done almost — we have done INR82 crore of revenue in this quarter. So is it — so let me grown? Yeah. Sure.
Deepak Joshi
No, no, let it degrown means actually, if you see, we are putting a lot of efforts on IPD side. So IPD, if you see, they have grown, so that growth has come from the export market. So that’s why we are seeing a little lower number on IPD side where export has grown, right? So export of IPD has grown and domestic IPD has a little gone down. But as I said on the domestic market or CPD division, we are showing overall growth of 60% to 70% on nine-month basis, right? So that’s why the growth on CPD has been very strong and we are intentionally putting more efforts on IPD for export side. So that’s why this mix has little changed because this is on the company-level.
Unidentified Participant
Okay. So the de-growth is on the IPD side and not on the consumer side.
Deepak Joshi
Definitely.
Unidentified Participant
So sir, on the colored PPF, if you can highlight what can be the scope of this product? And the last question is on the architecture films. How is that scaling up? So the scope of color PPS and how is architecture films performing and how do you see the growth in the segment?
Deepak Joshi
So, yeah, good. So you know what is happening? We are seeing — we have launched the color PPF with a different reason. The reason was like if you see Tesla currently doing stainless steel bodies, right? So the colored PPF has become very popular in the US market, right, because the kind of color you want, you are getting with that, right?
In India, we are expecting, you know, with the current geopolitical, as I said, we are taking to — we are very positive in terms of taking advantage of the situation where we feel lot of such a vehicle may come to India, right, because it’s whatever happens in the West in USA and all, they come to India, right? If we see like Tesla launching cybertruck in the stainless bodies, there are some factors behind that. That paint is one of the most hazardous compound or part on a car. So that’s why they are doing a stainless steel bodies. But if you talk of the aesthetic point-of-view, people love color, right? So that’s how the business of Tesla colored PPF has increased.
So you think of any opportunities, these things coming to India, we will be the number-one and the market leaders in providing all those things, right? And we are doing the same thing in America also. But in India, this will go through a very different set of growth. That is number-one. Number two, when you talk of colored PPF like black and all, right? So the black PPF and is gre doing really good for us, where the quality of the car aesthetic value of car goes very-high with colored PPF because you are putting another colored layer on your color. So the gloss increases and the protection goes to the next level.
And all the new and young generation, which are car endu, they want to do it with a two different color, three different colors, right, that attracts them. So we are trying to make that. As of now, I can say that the business has not grown that much. But all the businesses which we are doing now, we have seeded that into the market and we are expecting a sort of — I mean, steady growth into that, which will lead us to really good volumes in future.
I can say, if you talk of the market where people just produce transparent PPF. We are now level of a very different color of PPS and then PPF and onto that the excluding our own GPU. So with that, we become a very value-added and I mean this everything is a value addition to PPA business. So this will definitely drive more revenues and higher per — I mean EBITDA and bottom-line cost.
Unidentified Participant
Anything on pricing we have decided for that of PPF?
Deepak Joshi
Yeah. See, colored PPF, definitely, I can give you like in a percentage terms, it is roughly 25% on transparent PPF and a ballpark figure because this pricing and all those is decided based on the market situation, competition and all those things. But in a — like comparative between our products, it is 20% to 25% at a higher price because it has got a value addition in it.
Unidentified Participant
Yeah. So on the architectural also.
Deepak Joshi
Sorry, your question was to architectural business as well. So like I answered that question that the growth in India is getting very strong and that will continue for at least next two to three years because we started from a low-base. But at the same time, in America, we are trying to replicate that thing. So definitely this will add-up a new brands for us
Operator
MR. Ankit, please fall-back in the question queue for further questions. The next question is from the line of Mihir Dhami from Share Khan. Please go-ahead.
Mihir Dhami
Sir, in HCS business, can you help us with the growth of and separately, separately and also the revenue split for the current quarter?
Deepak Joshi
Sorry, I was lost with the question. Can you repeat, sir?
Mihir Dhami
Yeah, yeah. Year-on-year growth in architectural and and also the revenue split for the current quarter.
Deepak Joshi
Okay. So growth has been — Abhishek, can you just show the growth on PPF business? And PPF, as we have said, it has grown by 20% already, right? On the Sun Control, the growth has been 42%, right? On a nine-month basis, three months. IPD 14%. The Sun Control 42% and PPF 20%.
Mihir Dhami
So can you help to the three months growth Y-o-Y growth in the 3rd-quarter 3rd-quarter
Deepak Joshi
Hey, this is Nine-Month data. Now 3rd-quarter just a second because I’ll just give you numbers yeah so that actually normally we are not declaring, but let me just tell you that there has been, like we said on Sun Control, there has been a growth of 16%, 20% growth on Sun Control on quarterly basis, almost flat on PPS and around how much percentage in IPD there has been minimal growth. Okay. But Nine-Month basis there has been a very strong growth like I explained.
Mihir Dhami
Got it. And in the PPS business, is there any reason in particular that there was a little bit decline this quarter?
Deepak Joshi
Yeah, yeah, definitely. There is a strong reason for that. If I’ll tell you in Q2, the numbers has been very, very strong. If you see the Q2 numbers where the growth has been phenomenal, right? So when such strong dispatches happen from India, so there is always some kind of a drop-in the numbers going-forward because Q2 that has grown to phenomenal numbers, PPM. So that’s why we saw a little low in next month onwards. But again, we are seeing the same. It is going to grow up from Q4 onwards.
Mihir Dhami
Okay. Got it. Thank you. Thank you.
Operator
The next question is from the line of Vinay from Hathaway Investments. Please go-ahead.
Unidentified Participant
Hello. Yeah, we can hear you. Hello.
Operator
Yes, sir, please go-ahead. We can hear you.
Unidentified Participant
Hello, can you hear me?
Operator
Yes, sir, we can hear.
Unidentified Participant
I’m sorry for this. Sorry for this. Just wanted quickly, what is the cash balance you said? Free-cash available?
Deepak Joshi
INR574 crores you.
Unidentified Participant
Okay. And secondly, what is the guided number for PAT percentage for F ’26.
Deepak Joshi
PAT percentage. See PAT percentage depends on the taxation and so many things. What we track is the operating margins, EBITDA percentage, right? So that we have given a guideline that is always going to remain 25% — 25% plus-minus 3%. But though we are performing around 24%, right? So we are optimistic that these numbers will be — will remain same or grow slightly.
Unidentified Participant
Okay, including the two advantages that you’re going to grow in terms of backward integration and the additional PPF line, you are estimating it to remain in 25% plus-minus 3%?
Deepak Joshi
No, with this, when TPU plant comes, then we have given a general guideline, another addition of 2%, right?
Unidentified Participant
Over and these
Deepak Joshi
Are estimated numbers, it will depend on the situation that time. But if we talk of 25% at plus-minus 2%, 3%. So there will be — definitely it can go 23% plus-minus 3% that’s a broad guideline we’ll have. And see the TPU line will start in FY ’27, which is October ’26. So FY ’26, we cannot assume that scale yeah.
But we are thinking as again, we are talking here the annual contiguous growth on annualized basis and because Q1, Q2 and Q3 little low, then Q4 goes up, Q1 always becomes stronger Q2 even. So that’s the flow. So what we are trying to say here is like year-on-year basis, there is a strong plan for the growth. There is a sales addition, there is marketing efforts continuously into that direction.
Unidentified Participant
Okay. And lastly, this employee cost, which has increased in this quarter significantly is because of your deployment in US is it was that? Addition? Addition?
Deepak Joshi
Yeah, see, what we are doing is, like I said, we are deploying employees over — I mean overseas and making a new team and you know what we have seen like we feel a strong need of growth in countries where only we can further grow. Number-one is of course, the US and other than somebody — some gentleman asked me about South America there also addition has happened.
So if I tell you like now we have like a addition everywhere in sales and marketing and plus there has been a good addition on the R&D side as well because of, you know, this is the DNA of the company where we always try to come up with new solutions for industry, right, for that there has been addition on R&D side as well.
Unidentified Participant
Thanks a lot, sir. Thank you.
Operator
The next question is from the line of Sunil Jain from Nirmal Bang Securities. Please go-ahead.
Sunil Jain
Sir, my question relates to PPF, wherein you said that there is no seasonality, there is — I think there is no seasonality in PPF. Am I correct, sir?
Deepak Joshi
Yes. Yes. Just because there was an excess buying in the Q2 and that is getting normalized. Yes.
Sunil Jain
And how you are seeing the trend in — already we are about one month, 10 days in the current quarter. So are we seeing buoyant buying coming back into the — in this year, in this quarter?
Deepak Joshi
Yeah. Yeah. Actually we are not allowed to talk about the current quarter, but overall, as a guidance, yes, I mean the things are — again, I would request like what we are trying to do here, like month-on-month basis, it’s very difficult for us to predict. But overall, like we have — our way of working is we have very strong, you know, the order book, which comes from like USA and other parts of the world, then it is manufactured here, then it is put on-the-water, it reaches to our warehouses and from there it is actually sale to our customers.
So but whatever we have on-the-water and on the warehouses, this is basically gives us the real sale going-forward. So that has already happened, right? So the actual realization will come during coming months. But the sale and everything, that’s why month-on-month data is really difficult for us to predict, right? But on a — like I said on a quarterly basis or on an annually basis, we are seeing things are going like better from here.
Sunil Jain
Okay. And sir, second question related to your tariff, you said impact of around 2%, 3%. So in that how much tariff increase you are thinking of how much tariff you have been put on?
Deepak Joshi
Honestly, we are not thinking of any tariff, right? So there was — we gave you the worst-case scenario because we evaluate all those things. We are in touch with our customers, we are in touch with the customer — our consultants. So there seems to be no — I would say, there is no as of now, tariff expectations for us because whenever we can make out from the discussions, there has been one mention in the past about a save tariff to India and whatever they touch and like whenever they charge to us, right?
So we are just evaluating like one thing that as of now, there is nothing, right? There is nothing, absolutely nothing because the stock has been on the EU and all, whereas Government of India has already lowered the duties on certain items, which has been discussed by in the past and there is expected meeting in this week, next week between those head of states, right, Head of countries, right?
So we don’t expect anything, but worst-case scenario is not going to affect us because I’ll give you another number like the way somebody asked me, if that happens, then a dollar may further appreciate and we can gain that advantage from there. Like we have like a full vision in our — in front of us, like if that goes up, then there is 2%, 3%, we — there definitely other ways where we are going to make it from somewhere else. So we don’t feel that there is anything negative. In fact, in the current situation, we feel like because there has been an already-strong duty addition to Chinese goods, so we can take advantage of that situation.
Sunil Jain
Sir, last thing about you last quarter indicated that Q4 can be similar to Q2. Is that possible, sir?
Deepak Joshi
See, exact number I can’t give because there are lot of ups and downs. But definitely, as I said, it is going to be much better than Q3, right? It will be like, I can say Q1, Q2 kind of numbers in Q4 as well.
Sunil Jain
Okay. Great. Thank you very much, sir.
Operator
Thank you. The next question is from the line of Ankur Kumar from Alpha Capital. Please go-ahead.
Ankur Kumar
Hello, sir. Thank you for taking my question. Sir, I wanted to understand as in nine months, we have gone — we have grown really well this year, even with a slow Q3. But given we are guiding for only INR2,500 crores, which is like — and this year also we’re saying INR2,000 plus crore, which would mean Q4 will not be much. So any plans to increase this INR2,500 crore number because going so well, sir.
Deepak Joshi
Okay. Yeah. See, better to give some guidance because that guidance was given two years ago, if I remember, right? So we are rushing to that with a good pace, right? So we would not like to change it. Having said that, it is our — you have seen our performance like even the last years, the — I would say more than the top-line, just see the bottom-line.
The kind of growth has been like 75% to 80% growth, right, 75-plus percentage growth on the bottom-line, right? So we focus more into like value addition product, value-added products, which gives us best margin because everyone or ourselves will look at the operating margin how we can make it better without losing, of course, any sales, right? So we’ll keep the same top-line number, but definitely we’ll try to improve on that. Definitely, we’ll try to improve on that.
Ankur Kumar
Got it. And sir, on margin side, as you can see, you say 25 plus-minus 3%. So is it like since we are focusing on more on margin side, can we get to closer to the top-end number?
Deepak Joshi
Yeah. See, on nine-month basis, we are already at 24%, right? So definitely our year is going to-end with a strong number, right? So nine months, we have already given 24% has been the nine-month number. So now if you really see our efforts, company efforts is towards the niche product, that is how this TPU project is going to help us, which we set definitely to improve the cost-saving and improve the operational efficiency and new product developments and improving operating margins for us. So this is actually a step towards this direction only.
Ankur Kumar
Sure, sir. Thank you and all the best.
Operator
Thank you. The next question is from the line of Desai from FODS Family Office. Please go-ahead.
Unidentified Participant
Yeah. Thanks. Thank you for the opportunity, sir. Sir, my question is on the PPF side. Since what I’ve been noticing is for last couple of years, both the large capexes were announced on that side, including the TPU. So one thing I wanted to understand on the overall market size or the potential. I mean, do we — are we strategically focusing on that as an area we think that this can be a very large-enough market for, let’s say, next two, three years perspective and really want to focus on the opportunity.
So just want to get a sense, given that our Sun since is a largely mature market, do we see this as an area which can give us a large growth and can this become probably large-enough — as large as Sun Control in next two, three years? And on the TPU side specifically, since the — I mean your announcement mentions a 33 month of payback period at INR118 crore of capex. So are we roughly looking at INR40 crore INR45 crore of annualized savings, which will directly flow into EBITDA?So if you could just that.
Deepak Joshi
So the last — to answer your last question is, yes, you are in the right direction. We will say INR4 crore, INR5 crore here and there, but you are back on the numbers, right? So I support your numbers, so that is going to happen on an annualized basis, right, on the TPU side, right? So going back on to PPF, yes, PCF, if we talk the story, like we have built the market India market from 0.1% to right now, the market is 2% and there is a big headroom available in India itself for around 8% to 10%. So we are working towards that. That’s number-one. Number two, in the colored PPF and all those things, there are lot of opportunities coming into the US and other markets.
And we study it quite well that there are very few people who are into the colored people. There are many people selling. But again, what we are saying is the manufacturing world, right? So there are very few people who are manufacturing that. So you will see these advantage in-going — coming years where we will definitely have the advantage of these things. So please note the word manufacturing. So that’s the capability of Garwari Hi-Tech films with a very strong R&D, very strong new product development team. We are eyeing at a very-high market of PPF with both penetration into the market and targeting newer market with different product-line that is colored PPF and different matte and other size PPF.
Unidentified Participant
And my second question, I think in your comments at the beginning, you mentioned healthcare is one of the segments in the opportunity. So if you can elaborate a bit there.
Deepak Joshi
Yeah. See, we mentioned that number with a very, very nascent these things, what we have done is like this particular line, right, is capable to supply one of the two lines, that is 50% of the capacity. But having our DNA into strong R&D sector, we will keep some portion always available for these kind of studies.
What we have done, we are doing through some consultants and all, eyeing on some niche market, which we would not like to comment on the products right now because that is what we want to do with a very, you know very specialty value-added product-line. So healthcare is one of them, but it will take some time for us to disclose the products and all, right?
So that can be one of the things. Another thing we also said about the architecture, we are also seeing lot of you know value addition in the — for the glass industry where this product goes as a base field. So there also we are eyeing. These are completely new segments for us and so we are venturing into that.
Unidentified Participant
Sure. Thank you, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, due to time constraint, this was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
Deepak Joshi
Thank you. Yeah. Dear partners, we are really thankful for your attendance here. It has been a great pleasure to interact with you guys. And once again, we would like to thank you for the participation, giving your time. We hope that such interaction will continue and we continue to interact and hand the company continues to grow and create value for its shareholders. Thank you very much.
Operator
On behalf of Flims Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. Thank you.