Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Garware Hi-Tech Films Ltd (NSE: GARWARPOLY) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Garima Singla — Investor Relations
Deepak Joshi — Director of Sales and Marketing
Abhishek Agarwal — Chief Financial Officer
Analysts:
Rahul Jain — Analyst
Mahesh Bendre — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Sunil Jain — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen,
Rahul Jain — Analyst
Good day and welcome to Garware high tech films G4 and FY26 earning conference call hosted by Coindia Advice. This conference call may contain forward looking statement about the company which are based on beliefs, opinion and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation.
Conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the CONFERENCE over to Ms. Karima. Thank you. And over to you ma’. Am.
Garima Singla — Investor Relations
Thank you. Good morning everyone. And I’m Garima Singla. And it’s my pleasure to welcome you on behalf of Darware High Tech Films Limited. Thank you for joining us today for quarter four and full year FY26 earnings conference. This call is being hosted by Goindia Advisors. Please note that today’s discussion may 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, the 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 and A. Thank you. And over to you.
Deepak Joshi — Director of Sales and Marketing
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 High Tech film 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 sum of core principles. Innovation, integrity and a customer first approach.
FY26 was a year that truly tested these values. The global environment remains challenging with geopolitical volatility and elevated tariff structure 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 offtake to ensure supply chain continuity and more importantly to stand by our customers and partners and that made the difference. Despite the challenging environment, we were able to maintain our market share across each geography 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. Q1 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 crores, EBITDA at INR 500 crores 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 remain equally focused on building for the future. We continue to strengthen our value added product portfolio with the launch of sustainable TPU based UV printable films, PDLC specialty films, enabling privacy on demand and advanced graphics 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 products and unmatched distribution network. In India we further expanded our domestic footprint by onboarding four large OEMs in automotive segment along with seven plus strategic addition in our architectural business segment, supporting our continued expansion in the fast growing B2C 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 developed over a 500 crore towards capacity expansion across two PPF, one sun control, one metallizer and one TPU and other ancillary lines entirely funded through our internal accruals. Reflecting strong cash generation and disciplined capital allocation, we announced an additional 191 crore investment in a new Suncontrol 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 a cash reserves of 774crores 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 Plex Council Highest Exporter Award and being recognized among India’s top value creators by Dunn and Bradstreet. As we look forward, the next phase of growth for Garware high tech films will be driven by our high value and innovation led segments including Sun Control, Paint protection Films, Graphic Solutions, Garvare 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 B2B 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 Agrawal, our CFO to take you through the financial performance in detail. Thank you,
Abhishek Agarwal — Chief Financial Officer
Thank you Deepak and good morning everyone. Let me take you through the key financial highlights for the fourth quarter and full year ended 31 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 PPT stood at 142 crores up 31% year on year while PAT increased to rupees 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 2120 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. PVT came near 46 crore 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 balance sheet with cash and liquid investments of rupees 774 crores at year end. Our disciplined capital allocation and strong balance sheet give us the confidence to pursue this growth while continue to enhance stakeholder value. Thank you all. I will now hand it over to Deepak.
Deepak Joshi — Director of Sales and Marketing
Over to the moderator please.
Rahul Jain — Analyst
Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch on telephone. If you wish to remove yourself from the question queue, you may press star N2 participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question come from the line of Mahesh Bendre from LIC Mutual Fund. Please go ahead.
Questions and Answers:
Mahesh Bendre
Hi. Good morning, sir. Thank you so much for the opportunity. Sir, one housekeeping question. I mean for full year, what proportion of our revenue have come from the Sun Controlled Films, paint production films and rest. The commodity products.
Deepak Joshi
Yeah. So. Thank you, Mahesh. So our revenues for last year, I mean were almost 50% from Sun Control Films and both 25% from PPF and 25% from IPDS. So that’s like a breakup for last year.
Mahesh Bendre
Okay, sure. And sir, the latest expansion that the plan we have prepared. So when this will become operational, which year it will start contributing to our sales.
Deepak Joshi
So this new Sun Control film expansion, commercial production will start by June 2027. So that is Q1, FY28.
Mahesh Bendre
Okay. Okay. So this will be. I mean just are we. I mean this will be carried in the existing plant or we are going to set up a new plant?
Deepak Joshi
No, no, this is entirely a new plant at the same location. But it’s. It’s a new facility. The. Our earlier Sun Control, the earlier line, it will be adjacent to that line. But this line will have more features in terms of automation and robotics to take us. I mean 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 improve our efficiency, it will improve our productivity. At the same time I mean it will be entirely new experience for our consumers as we are growing at a very fast pace in sun control business
Mahesh Bendre
This entirely will be export focused or is it domestic also?
Deepak Joshi
So our strategy if we see we focus on the both markets, I mean both are important but the ratios which we expect like growth all across the territories, those domestic market will also grow but ultimately it will be like 80%, 75, 25 or 80:20 ratio between exports and domestic market. That ratio will continue because of the overall growth which we are targeting for the company.
Mahesh Bendre
Sir, last question from my end. So last year our revenue was flat almost some revenue what we reported in 25. So if we are to look at for next two years what kind of growth we anticipate in terms of sales and given the backward integration project is going to come off, what kind of improvement in margin we see next two years. Yeah,
Deepak Joshi
So we expect like you know 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. So we didn’t get enough time to recover what was done in the last year. So that’s the reason because if you see nine months performance was around 10 to 15 below our previous year FY25 performance. But we did a great jump in Q4 by taking revenues and profitability to highest level for us.
So that means this year we hope that such situation is not there. Right. So we expect minimum 2500 crore revenue for FY27. Right. And we will maintain 25% plus minus 2% of the 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. And with the growth of the company strategy now to direct to consumer D2C business. That’s why we have emphasized that Garware application studios, Global application studios in US and Middle east and Garvare Home solutions, these three are directly to the consumers.
So 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 like 5,000, 7,000 in a month it has gone almost, you know close to 1.7, 1.8 lakh a month. So our digital drive and the focus towards the consumer is the key Key focus for years to come and direct to consumer is the right strategy. And another one thing we are doing, we are selling direct to consumer in US USA PPF business also.
So all those things reflects like the key strategies D2C supported by digital marketing. And 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 film. That means you can make your windows like fully opaque, semi transparent and full transparent by click of a button. So these kind of new technologies which we want to make this technology to go to every standard homes in India and then it will go to abroad.
So with all those strategies I mean our major focus is brand building and direct to consumer focus.
Mahesh Bendre
Sure. Thank you so much sir.
Deepak Joshi
Thank you.
Rahul Jain
Thank you. Our next question comes from the line of Dixie Jain from Incred. Please go ahead.
Unidentified Participant
Hello. Congratulations on paid 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?
Deepak Joshi
Yes, definitely. We have four big partnerships with OEMs. That means direct agreement with the OEM so they take our material to their showrooms. We have four such strong partnerships and two are already in discussion and samples are already approved. So that is already there.
Unidentified Participant
And what are the current utilization levels at all our facilities?
Deepak Joshi
Yeah, so our sun control lines are running around 75 to 80%. So 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. So 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. So that also we expect to go full and we will use some feasibility of the new sun control line and think of future expansion if required on that and rest TPU line is on one target that is coming on October this year.
So that’s the operating rate for us as of now.
Unidentified Participant
Last question from my side. The anti dumping duty that were that was supposed to come on the cheap imports that are happening from China and Korean Korea. So any update on that?
Deepak Joshi
See that might be a question. I mean there may be some, you know interest or confidentiality but the news is that they’re all hearing submissions and everything happened, all visits, what government officials do that has also been done. So we expect a positive news pretty soon as as fast as maybe this month or next month. Want.
Unidentified Participant
Okay. Thank you. Thank you for answering the question.
Deepak Joshi
Thank you very much.
Rahul Jain
Thank you. Next question come from the line of Rahul Jen from Credence Wealth. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Am I audible?
Deepak Joshi
Yes.
Unidentified Participant
So first of all congratulations to the entire team of the GAR High Tech to the promoters also wonderful set of numbers and in a tough environment for the last one year.
Deepak Joshi
Thank you very much.
Unidentified Participant
Yeah. So Deepak, we have been talking in the previous two calls about our focus on Middle east. So just to. And we had formed a subsidiary which was supposed to get completed in this quarter four and we had spoken that various other strategies are being put in place including on the marketing side and also whether how this subsidiary would further be available for some other options including sales across other regions as well as there was a discussion about some manufacturing plaque. So first of all if you can talk about where are we in terms of sales today in Middle east?
What are the various steps being taken and where do you see Middle east sales going up in next one or two years?
Deepak Joshi
Yeah, so see we consider Middle East North Africa is an MENA which is a growth biggest growth driver for us as of now. Let me tell you the sale of that is roughly around $15 million and we expect that a growth of around 25 to 30% CAGR for the year. So we are targeting 20 to $22 million in during this year. Right. So that’s growth pattern. Now how did this happen? Like we said we have a separate team which is 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 there is some already, some work has gone into this, some kind of you know I would say manufacturing or some kind of value addition. That work is going on and the primary purpose of that of any kind of unforeseen situation from anywhere in the world like we faced last year, we are, we will be well poised to keep cater our customers with these kind of flexibility. So that was the purpose and we are well on track for that.
So I’ve shared you like the targeted numbers and what we are doing there and this work is in progress and when there is any further update we’ll update you on that
Unidentified Participant
With regards to this CAPEX which we have announced. So PCF we already at 85, 89% utilization as what you mentioned to the previous participant.
Deepak Joshi
Yes.
Unidentified Participant
And STF is probably around 75 80.
Unidentified Participant
So
Unidentified Participant
With that understanding I would have thought you must have already decided or thought about or discussing about a new PPF line. But before a new PPF line we are going ahead and building up a new SC applying almost 30% capacity addition.
Unidentified Participant
So
Unidentified Participant
Just to understand the scenario behind this. Is it because the demand is quite robust in terms of SPF and architecture frame which is a part of spf. Which is why we have announced this SPF expansion prior to going for one more PPF line.
Deepak Joshi
Yeah. See I will tell you the growth in SCF has been pretty rapid. Of course PPF is also growing us very fast. But next year see FCF means we are a very well known brand in India and US Global is a well known brand for automotive. So you see that growth is always there despite like we have hit a quite strong market penetration on that. But at the same time all architectural growth also comes from there. And if you see our new initiative which is, you know which are coming from Garware Home Solutions which is like 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 that glass. In architectural it is the word because if you see the normal control films, safety and security films, the films which are on privacy, privacy on on demand. And finally you know the. I can say the. When you can see. I mean we make the products we just dual reflective or reflective. So you see options are unlimited in architectural segment. And we just started that work two, three years back.
Right. So we are growing pretty fast there with GHS on board and and architectural other brands 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. So that’s why the need for sun control sin came first. And and another thing is sun control capacity is bigger than the ppf. When we put a new line that means PPF lines because of its speed and microns it produces roughly 25 lakh square feet in a month.
Whereas sun control film can produce 101,25 lakh square feet in a month. So what happens is when we put sun control plant that means fungibility wherever we 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. So that’s the rationale behind putting a sun control line ahead of a PPF line.
Unidentified Participant
Okay. I thought there is something to do with P1 or one of our large customers who just on yesterday’s con call mentioned about environment changing from demand limited to more of capacity limited. That’s the statement made by one of our large customers in yesterday. So maybe we are trying to build capacity somewhere and keeping that in mind.
Deepak Joshi
No, that growth 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. So Sun Control is. See let me tell you, I just answered the first question like 50% of our revenues are from Sun Control. So anyway Sun Control is our number one like number one product. And if you see the growth is also the fastest in that everything is linked to that, right? And building a Sun Control line, anybody can say anything but it’s.
It’s one of the toughest challenge that people have. And our lines, I can’t tell the details but they are so advanced that people can’t compete with that kind of. You know the operations done at one go like they are built by our own team. There are very unique operations with all of that Sun Control machine with which nobody has in the world. So we know our Sun Control business is a unique model which is growing very fast. There is no stopping to that. And PPF of course is growing very fast for us.
And like previous participants asked about anti dumping and similar, many measures are going here, Middle east and USA and especially direct to consumer is one of the first priority in ppf. So 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 PPM. And of course TPU as a backward integration will have more demand. So that will also be decided by the company where to move fast. But we are on a takeoff mode on all three products.
Unidentified Participant
That’s very hard thing to know. Deepak. Sir, last thing on architecture. Since you didn’t mention much about our architecture in the previous calls we had mentioned that we are about to do about 300 crores in FY26 and that 300 moving to 400 crores in FY27 and further to 500 in FY28. Now given the changes which has happened in terms of the tariff changes and also your trust on Middle east do we expect this architectural frames to be higher than the number which we have given in the previous call?
Deepak Joshi
It’s very difficult to give each numbers ahead. So what I am saying is like we are quite confident to reach 2 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. So the growth which we can. Whatever happens cannot happen in. In a year’s time. We are building 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 stronger new product developments. R and D and a channel which remains there with the help of consumers. Right. All others are definitely there. We are strong in. I mean B2B segment. We are strong with OE’s because they like the product, they like the quality. And on much bigger hospitality and other industries including railways and airport. Right. But our ultimate goal is to penetrate everywhere. But it should be the brand should be visible in terms of, you know, consumers.
So that’s the first priority with the digital penetration. So I am giving you this number of 2500 crore plus plus a growth of 20% circumstances CAGR which we have done in last four years barring last year. Right. So that will include everything.
Unidentified Participant
Thank you so much, Deepak sir. And wishing you all the best for much more success going ahead. Thank you so much.
Deepak Joshi
Thank you. Thank you very much. Thank you.
Rahul Jain
Thank you. Ladies and gentlemen. In order to ensure that the management will be able to address all the questions from the participant we kindly request you to limit your question to two questions per participant. If you have a follow up question, please rejoin the queue. Our next question comes from the line of Saran Gupta from Swan Investments. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Deepak Joshi
Yes.
Rahul Jain
Yes sir.
Unidentified Participant
On a very good set of products. I had a few questions. So firstly I just wanted to understand like how is the industry dynamics right now like with the war going on in the middle. So how has it come if we talk about from post January and what are they currently.
Deepak Joshi
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 word. The world will go like that. We as 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 big market. Then there was a conflict. And then I said this tariff which was the biggest like headwinds for us.
Right. So now this Middle east thing has come. But let me you tell, tell you one thing. The big, the good thing about Garvare is that it has got it supplies over 90 countries in the world. So when USA is in trouble, Europe and Eastern Europe helps us. When there is a issue in some other part of the world, the other part helps in the Middle east region. Whenever there is a problem, we have like other areas which really perform well because I. I think somehow the material reaches there, but through different routes.
So we have all and we are in touch with our customers this and we are not feeling any, you know, negative impact. I mean it’s a 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. And in terms of like you know, our sailings, we are in the past also we have avoided hormones and we have also avoided Suez Canal. It takes longer route, little more on expenses on you know, 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 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 there will be a brighter time. So we held on to that. We made our inventories to sustain in a way that whenever the opportunity comes, people can refill the customers can refill their inventories to meet to. To sail through it successfully.
So same thing with all those things we always think for future like how we can cater that market in the best possible way. And in the current situation we see it’s not as big as like the last year as big as trouble it was last year. So it is being handled very nicely. I can say.
Unidentified Participant
Did mention that due to the tariff our inventories are at the port and we are just waiting for the tariff to subside so that we can export the. We can release those inventories. So how is the situation from the supplier and right now like at what position we are in the inventory.
Deepak Joshi
So. So whatever we said actually that held true. And that’s why we did a good job in the in. In second half of February and March we released most of the goods. I can say, I mean required by the consumer at that time. We still have good. I can say roughly if we 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.
So I gave you the inventory Numbers and it’s. It’s good demand cycle going on. That’s all I can say right now.
Unidentified Participant
As you mentioned that from six home studios in this year. So how big of this segment can it be if I see for at least 3, 4 years, 5 years can.
Deepak Joshi
Sorry I was not able to hear you are talking of Garware Home Solutions or Garware or global application studios.
Unidentified Participant
I basically I’m talking about
Deepak Joshi
Garware Home Solutions. Yeah. So 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. So by end of this year target is 50 right. To open the 50 studios in different parts of India. Right. And this is definitely the concept of. This is as our distributors dealers are pretty big in size to cater these smaller home buyers we are opening these studios in every in neighborhood so that the smaller ticket size job can be done.
Of course it’s a higher margin job. Right. And the ultimate idea is direct to consumer strategy that fits into our D2C model. Direct to consumer model where the most of the work will be done through I mean digital mode. That means the payments and ordering and all flows will be digital mode. That work is still into that. I mean making. But the. 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 these kind of small ticket supplies from us and I’m very happy.
When I was in Delhi and Gurgaon and we opened there I met many customers and they said you know these small ticket side business from Garware which is a big brand name. This is helping us and we are using 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.
Unidentified Participant
The kind of value added products that we made understand like how big this segment can become in future. Like if you see.
Deepak Joshi
Hi. So as I said we just started it’s in nascent stages and it’s very like a digital driven business. So we expect like by next financial year end we should cross around 200 crore from Garware Home Solutions plus other new products together because these all mostly would be part of Garware Home solution and going forward our aim is higher than that. But at least I can say for next financial year FY28 we should cross 200 crores business from Garvare Home Solutions and plus edit new products like PDLC and others
Unidentified Participant
And all the Best. Thank you so much.
Deepak Joshi
Thank you.
Rahul Jain
Thank you. The next question comes from the line of Akan Pratap Singh from GM Financial Mutual fund. Please go ahead
Unidentified Participant
Sir. My question is related to refund of carries from the USA government which implemented earlier actually. So what kind of amount we are expecting?
Deepak Joshi
See this amount is definitely whatever we pay is being refunded. But. And we are in touch with authorities also and we have opened the account. But this is like. I’m. I’m not sure. Like I cannot guarantee because this is a government matter and as the. The time it comes definitely I mean. I mean then only I can confirm about that because it’s. It’s something which is accounting related matter. But. But let me tell you when from 50% tariff we did such a great job. We only like maintained 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 like 25, 30% growth there. So on that number I’m avoiding because it may not when it comes it’s like accounting. We would like to be conservative and whatever is in our end we are focusing on that. Right. What is the strategy for the company, how big that means 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 you know see like on the accounting standards how it is to be put into our books and. And some of them we might have to give for the consumers also. Right. So but definitely there will be a positive news on that.
Unidentified Participant
Okay. And the second question related to this input cost rise. So there is a significant increase in the raw material cost. So just wanted to know the kind of inventory again we will be having. Are we a like reporting the better margins in the Q1 and how we will be managing this cost increase? Actually
Deepak Joshi
We have like very great agreements with our consumers because we are always transparent with them. Like in the 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 or customers and do away. We have always been very, you know, understanding same way our customers are also understanding because the situation we have a scientific method where we see the correlation between the raw materials which is PT and MEG versus our IPD products versus our CPD product.
So in all that likelihood we went to the market and discuss with them and we were able to get that kind of increase from our customers in a very healthy and ethical way.
Unidentified Participant
Okay. Okay, sir, answer. In PPF business, can you tell what is the proportion between the direct to consumer and B2B?
Deepak Joshi
So you mean margins between D2C and the. I mean big customers distributor. That’s what you are asking?
Unidentified Participant
Yeah. You mentioned B2B as well actually in the. Yeah, yeah.
Deepak Joshi
So you know in. 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 handling those things. But in that the real cost comes off your. Your digital marketing and penetration. But of course the margins are definitely 25, 30% higher than the distributor margins.
Unidentified Participant
So revenue friend, what is. I’m sorry to interrupt you sir, but you may please rejoin the queue. Yeah, just last question. Revenue share I was looking for, sir, from the D2D2C and B2B in the PPF business.
Deepak Joshi
In that is. Let me tell you, this is just. We started this campaign maybe two years back with Karwari Application Studios. But Global Application Studio is. We started like six months back only. So as of now I can estimate the D2C business is only 10% of overall our revenue in India. It is like. I can say it’s like 40% as high as. But together with world market, I can say it is only 10 to 15% right now. Right. But it’s growing very fast and that’s the future for us.
Unidentified Participant
Okay, sir. Okay. Thank you sir.
Deepak Joshi
Thank you.
Rahul Jain
Thank you. Reminder to all the participants, kindly limit the question to two question per participant. Our next question comes from the line of Nikhil Chaudhary from Toro Wealth Managers llp. Please go ahead.
Unidentified Participant
Yeah. Hi Deepak. Sir, congratulations on a fantastic end to the year despite a challenging environment. I had two questions. Rest of the questions have been answered. In the Q3 call we had mentioned that we have some partnerships that are going on with the Chinese players using our global brand. Any status update on any partnership that we have signed and what could be the outlook with respect to these partnerships? And in the PPT we have mentioned about four OEMs onboarded. Is it in the PPS business?
Is it like a oem like the Mahindra tie up that we did that we had done a couple of quarters back.
Deepak Joshi
So answering the second question first. So yes, it is the same tie up with which it with Mahindra and Maidra similar because I am not naming name for the competitive safety for us. So we have now four in our books and another two are already the discussions are going on. So you are right on that. And that’s how the growth into PPF is continuously happening in the domestic market. So this is your second question and 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 like somewhere in February we updated you on that. So 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 that will definitely help us in PPF business going forward. It’s not yet concluded but we are, we are making sure that it goes in the right direction.
Unidentified Participant
Got it. Got it. And 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 African region which is around 6% of the revenues. What would be the US share for Q4 and full year?
Deepak Joshi
One second what was US? Yeah, so it is last year it was 45%. It was. I mean if you talk of FY25 it was 48% last year because of tariff and all situation it was 45%.
Unidentified Participant
Got it. Got it. Thank you so much and wish you all the best and thank you very much. Thank you very much for
Deepak Joshi
Encouraging words.
Rahul Jain
Thank you. Our next question comes from the line of a Sriram Palanyappan from I thought bms. Please go ahead.
Unidentified Participant
Am I audible, sir?
Sunil Jain
Yes.
Unidentified Participant
A textful opportunity. My first question is on on offer customer has indicated plans to move toward in house manufacturing of ppl. So how should we think about the potential impact on our business over medium term? And also what is our medium term goal with global application studios?
Deepak Joshi
Yeah, so that, I mean 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, I mean there are others as well. So 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. So for us we don’t see any challenge on that.
In fact we are like we are now 85, 89% of runability. 85 to 89 and we are full with order books on that. So there is no challenge which we see into that. Right. Because and the second thing is our major market is major thing is sun control which is 50% of our revenue generator. And then we are continuously growing even with the stronger. With the stronger strength going forward. Right. So that is there. And when you talk up about Global Application Studio that are like in USA and Middle east so they are continuously in.
We have a target for both the places like overall we should have at least. I mean I can say 50 for 50 for next one year. That’s the target which you are keeping for Garware Global Application Studios. And they will be when we say there will be like currently 10 to 15% volumes coming from their them ga Garware and Global Application studios and we definitely would like to go 25% and then 35% as a target going forward for our business and that will add our. That will increase our margins. So that’s the end.
Second thing is the brand visibility will increase more and more.
Unidentified Participant
Got it sir. And within the ACF sales in FY26 can you know what is the contribution of Architecture Influencer.
Deepak Joshi
Okay, Architectural. It is around 25% of total sun Control sales. But that is growing. I can say 25 to 30% is moving towards that. Thank you.
Rahul Jain
Thank you. Our next question come from the line of Riya Mehta from Equitas. Please go ahead.
Unidentified Participant
Thank you for giving me the opportunity and congratulations on good set of numbers. So my first question is in terms of you are focusing that Varvari will now become more of a D2C brand Etc. So what kind of investments are we doing? Because in terms of marketing and all that spend etc. So will our margin be lower than the D2B for some time?
Deepak Joshi
See, our strategy is not. We are not stopping B2B to grow into a D2C right? So what is happening? This work has been. We have been doing this work since last one year, right. Where our DTC D2C focus is increasing. And we already did a great marketing campaign last year which was part of the current performance of FY26 where our impression were close to 8 crore from you know, meta platforms only. And apart from that we revamped all our websites and put a new effort so that everybody sees actually what we are doing into the market.
And in Garware Home solutions we are directly building A channel which is you can order online these kind of things with the 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 our numbers already. So I can say there is a slight increase in our marketing budget. But definitely D2C is going to be 25 to 30% higher margin than B2C even for this year. And. But the volumes for this year is not that great.
I think the next year it will be even bigger. But these numbers of will not change. Change like the 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. So that’s the strategy for us.
Unidentified Participant
Got it. And in terms of the current results, what will be the currency appreciation in the entire result? Impact.
Deepak Joshi
Sorry,
Unidentified Participant
Impact of dollar appreciation. I
Deepak Joshi
See on the currency we definitely get advantage. I won’t say no on that. But you know 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. So I can say 45 to 50% impact is definitely nullified with that. Right. So for the balance definitely we get an advantage of that exact number. Abhishek, can we give. Do we have some kind of thing on that? I’m just asking, asking our CFO on that.
Definitely as I said 50 or is naturally health because our imports, import or import parity business is there balance? Definitely we get advantage of that. Sorry, please go ahead. Raw
Unidentified Participant
Materials availability and the pricing currently are we able to pass on the entire incremental raw material price hike? This is for both your traditional business of funds as well as the PPF and SPF because so maybe two questions. Availability and ability to pass on the price hike.
Deepak Joshi
Yes, I can tell you that we have been able to pass maximum of it. Because industrial product business is normally the consumer are directly affected. So 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 the appreciation and by the time price increase comes we are good with that. So I can say no negative impact of that. In fact slight positive impact might be there because of that.
Unidentified Participant
Got it. And my last point question would be that with the current interest rate going up and inflation also picking up in various geographies that you cater to. Or do you see any impact of demand anywhere or you see people curtailing down the cost because this is not a staple cost and more of a discretionary spend.
Deepak Joshi
Sorry, can you repeat the question please?
Unidentified Participant
With the current inflationary scenario interest rates also hiking, do you see any impact on demand or do you see any kind of slowdown coming in from any places? Because it’s a discretionary spend after all.
Deepak Joshi
I think the kind of segment we are in, it’s not a commodity where people do this is really. I mean if you’re referring to kind of global. You are talking about global warming in this situation?
Unidentified Participant
No, no, no. I am talking about inflation and interest rate. So
Deepak Joshi
Honestly this, whatever is happening is happening in the peak season. That’s summer for us. And in that like demand really remains high for us in India for like 3 months, 4 months, 4 months and in the world it is yet to come. So people have started building their thing. So we are not seeing that kind of impact. This might be more can be visible during weak season of Q3 but fortunately for us all those things is happening into the peak season. So we are not seeing the impact as of now.
Unidentified Participant
You know the demand is
Deepak Joshi
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 the Middle East.
Unidentified Participant
Got it. And in terms of next. I’m so sorry to interrupt you
Rahul Jain
Rhea. Thank you. This question comes from the line of Nilesh Jain from Astute Investment Management Private Limited. Please go ahead.
Unidentified Participant
Thank you for the opportunity. My question was on the TPU line which is going to come up in October. Broadly I wanted to understand largely this is given a background. Have you identified any other product what the 25% that you mentioned will be using apart from the PTS?
Deepak Joshi
I mean your question is for the new. Oh sorry question is for the TPU business. Right. So like we said it is. It can be used 100% in the PPF for the margin improvement. But we have built a new team R and D team which is working on some products and we have identified, identified already two products where we will start our first foray into from the TPU business. Right. One is the automotive product and one is the architectural product. So with that product, with these two products we are Definitely will start our sales which will be like.
Because it’s starting in the Q3 of this year so in three, four months I think there will be a very minimal revenue but we will set targets for the next year. So these two products definitely we are eyeing on from the start of the TPO business. And if that goes successful then it will be, I mean I say a big potential. And let me tell you about one of the product is being used widely in USA and Europe market and not touched by anybody in India. So that can be a good product for us in architectural segment from tpo.
Unidentified Participant
Okay, thank you. Given you mentioned you’re adding capacity on SCS side, what I understand given your current utilization is 80% and it will be fully utilized for this year and the additional capacity is going to come in next year, 20% capacity. Don’t you feel there’s a constraint on capacity to grow? You might need to add PPF line as well.
Deepak Joshi
Like I gave you the example that the growth, the major growth drivers are both PPF and sun control. But D2C business from Garware Home Solutions is growing very fast and the line size of window fair value. So this lamination lies much bigger than the ppf. Right. So we can use the fungibility for PPF business. Definitely. 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, we know the right capital allocation. So the, the decision was between PPF and window films and we have taken the decision of window film lamination line because the size is much bigger.
It’s four times production comes as compared to ppf. Right. Because of the thickness and all those things. So 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. So that’s the rationale behind putting this line.
Unidentified Participant
So and just last clarification. I’m sorry to interrupt you
Rahul Jain
Mr. Jain, but please rejoin the queue for more questions. Thank you.
Unidentified Participant
Just last, I’m just going to clarification. Yeah, yeah, just go ahead. What would be the standard tariff which we would be paying right now?
Deepak Joshi
Total tariff. So I’ll. I’ll explain you. You know the original tariff between before, I can say 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. So we’ll talk of additional tariffs which is only 10% now as compared to 50% last year.
Unidentified Participant
Okay, so 6.26
Deepak Joshi
Is already there. It was always there. But 50 was on top of that. Now only 10 on top of this.
Unidentified Participant
Okay. Okay. Thank you so much and all the best.
Deepak Joshi
Thank you.
Rahul Jain
Thank you. Our next question comes from the line of Sunil Jain from Nirmal Bank Securities Private Limited. Please go ahead.
Sunil Jain
Yeah, congratulations on good numbers and thanks for this opportunity. So my question relate to whatever the sales you are doing in your own brand, whether you are able to pass it on, the whole price increase or whole cost increase because of all these raw material price increases or B2B you may have some agreement but B2C is that happening at a stretch or it will take some time?
Deepak Joshi
No, actually honestly we are able to pass that on. Because if you really see this, when we talk of our industrial 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 jumping and all those things there the market reacts pretty quickly and we were able to do that. So that was number one. Number two, when we talk of our consumer products and PPF business. PPF business is mainly driven by TPU and at the and all those things there the increase was not that big because they are not directly linked to crude.
Right. So there the increase was minimal. But still we were able to take our price increase there. Now the third factor 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 edasses, on nano dispersion and all those things there we have seen that correlation going to like between I can say of approximately 10, 12 or 15% even.
And there calibrately we were able to take advantage of that. Sorry, we were able to take the price increase on a different, different situation from different customers.
Sunil Jain
So out of the total sales how much is we are selling in our own brand like Garvare and global.
Deepak Joshi
So if we see roughly 55% come goes into own garware brands and global, I mean our brands and roughly 40 to 45% goes into the private labels. And that may be like you know, direct private labels or neutral labels.
Sunil Jain
Okay, it’s a last question. Relate to the coming quarter. See last year Q1 was impacted because of the seasonal rain and also duty which came up in the 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. So generally Q1 is softer than Q4 or it’s equal or better than Q4.
Deepak Joshi
Sir, you answered the question. We say Q1 is the strongest because of the the seasonal. You know our major market is export. So for exports it’s like June, July, August, September. These are the strongest season in US and Europe. Right. So in such situation this the I can say April, May, that is Q1 is the right time for the ordering from us. So that’s why it is always a strong season. And in India this is like up to June is the strong season because of heat comes that season and then rain comes.
Right. So last year the situation this did not happen. There were two things. One, domestic market, the rain started coming in the month of April and also and beginning of May and it never stopped. It continued till the monsoon last year. And also the tariff situation made it very, very uncertain in US for the ordering and everything. Right. So in this year we don’t see that challenge. So you answered your question sir on your own.
Sunil Jain
Okay, just was confirming so India sales. But you
Rahul Jain
May please rejoin. Yeah,
Sunil Jain
Yeah. Okay. Please limit
Rahul Jain
Question to. Yeah reminded all the participant. Please limit the question to two question only. Thank you. Our next question come from the line of Shwetchaj and from Ans Wealth. Please go ahead.
Unidentified Participant
Hi sir, thanks for giving this opportunity and congrats on a great set of numbers. So my first question is on the SCS to the new capex. So how much of this would be for the automated part and how much of this would be for the home solution, the safe that you are expecting on this capexer and what would be the you know the asset turnover from this sir.
Deepak Joshi
Okay so on the new capex see Garware, let me tell you this. Overall this addition is roughly 30% of capacity addition, right. So if we see a G, 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 where I should need this capacity. So based on that current 75 to 80, 75 to 80% will almost finish in by Q Q2 of next year.
That’s what the estimate of course we can do some bottlenecking on the old plants and we will, we will not lose any sales because of that. So that’s the reason to put a new Plant. Now ghs we have a separate target where we are talking. Because the volume won’t be great. Like imagine a home. I’ll give you some numbers. Like if you really see we our distribute or dealers, the second guy distributor buys like 57 lakh square feet in a month. And a dealer buys maybe 50,000 square feet or 1 lakh square feet.
But a home buyer needs like 50 square feet or a 70 square feet. So that demand 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 the next year around 200 crore with all the PDLCs and everything. So but 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 business. Our revenues used to be 750800 crore. Then we strategically increased the CPD business towards architectural business. Then we went to 1300 crore, right? Then we added this PPL business. And along with the growth in architecture, architectural and normal sun control business we reached a level of 1600 crore in FY24. Right? And then with the growth in these two new lines coming and everything we reached 2100 crore last year.
So 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 on. 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. Then we are adding TPU for architectural and automotive. So we are continuously increasing our segment.
Each segment Even if adds 100 to 200 crore value that will drive our next growth to 25003000 crore in like this year and next year. So that’s. That’s where we are moving,
Unidentified Participant
Right? So just a follow up. So when you say architectural. So so help me understand on the architectural side, you know
Unidentified Participant
What
Unidentified Participant
Is the addressable market for us. I mean I’m so sure we have chalked out an internal plan for us that you know what is the most attractive products for us in the architecture. What geography looks most attractive for us. And Help me understand. I know it’s a very basic question that I’m asking but home solution what I understand is a subset in architectural, right?
Unidentified Participant
Yes. So
Unidentified Participant
You know what is the strategy like with geography? Which product, what is the revenue potential and what kind of margins that we have internally chopped out for us for next two, three years. You know, if you can help me understand that sir,
Deepak Joshi
That will be like. I’ll answer the question in a strategic way. Because if I give the numbers margins and everything. So the people who are just eyeing on these things will definitely that’s. We work every. Everybody works with a strategy, right? So we have a in place now to answer your question. I’ll give you in a broad level like there is a big market potential in USA where we have like made a team from our one of the number one competition in in USA second biggest market or I can say fastest growing market.
Even more than USA is the Middle East. Because if you see it’s ideal market for sun control business. Because there is lot of sun and there is hardly any. There is no rain and there is hardly any winter. Right. And the maximum development is happening. So that’s why two years back we took a call. We made a strong team there. And the team now working. I can say that proudly that one of the segment of Dubai mall is also done by us. So that’s the quality of our product. But it was missing the kind of.
You know the team which goes. Which has got relation which has got that kind of drive. So we have done that and 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. I mean they can definitely take advantage of local thing. Right. So that market is now you can see the growth. We see a Middle east and North Africa region is like something a big target for us. Then coming back to India again we made a team which was no focus on to automotive is to fully dedicated for architectural business.
Now architectural business. We already did railways, airports all airports, railways and then best hospitality chains are are working with us. And also some OEs who make like your would redesign your entire home bathrooms and everything we have directly tied up with them right now. Next thing is these 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. But how do I grow the business of karva or global to the end consumer.
So that’s where the garware Home Solution and Garware and Global application studios come into picture. Right? The product is great, but the name is also great. So there the margin will be like I said, will be 30, 40% higher than distributor level. And the branding will be there. And at the same time there the strategy works that there is a separate team. There is a. Now the question. Question is you are talking of the TAM right now. The TAM in this is you can create. I mean we have our targets, we know what it is.
But to tell you there is like we already catering such a big segment there and fighting with one of the like cheap imports coming from China and Korea and at the same time products imported from usa. But again put together everything has not even. It’s like I will say tip of the iceberg. Because people do not know what architectural product can do for homes and buildings, right? Even the owners of many hospitality chain they were not aware when I explained them. Their eyes were like oh really? That’s the thing.
But again we go to the basics like we did in ppf. When we entered into PPF market, nobody was even aware what a PPF is. We made so popular in India. More than 50 participants are there importing product or buying from us and 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 campaigns. Going to have big buildings and putting canopies, making them explain. And this will be done on over India and in the Middle East.
So that’s the strategy for us.
Unidentified Participant
Okay. Okay. So in products it’s not just sun control, right?
Deepak Joshi
Yes, that is not only sun control. There will be like surface protection films which is for your furniture with your kitchen sink and everything other than sun control. Then safety, security fin there will be switchable film on demand. That is called a privacy on demand. You can do like make it. Make it opaque, transparent, semi transparent. And so many lots of products are coming into that segment.
Unidentified Participant
Okay, so can I just squeeze in one very small question I wanted to ask in last call also if you allow me.
Deepak Joshi
Yes, please go ahead.
Unidentified Participant
Okay. So we were doing something with one day Bharat. I just want to. Just. Just want to get an update on that. Are we doing something for one day Bharat?
Deepak Joshi
We did during Kumbh Mela last year. We did a full train to avoid. You know. So you know we are doing. Thank you.
Unidentified Participant
Okay, thank you. Thank you.
Rahul Jain
Thank you. Our next question comes from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Operator
Yeah, thanks for the opportunity. And congratulations for a very set of numbers especially for the entire year we’ve done phenomenally well. Sir, my first question is on the, you know the impact of declining. Ankit, I’m sorry to interrupt you
Rahul Jain
But can you be a little louder please?
Unidentified Participant
Yes,
Operator
Sure. Sir, my first question is on the, you know the declining US Automation automotive sales. So if you look at last quarter and even in the month of April we have seen 5, 6% decline in the U.S. New U.S. Automotive sales. So what can be its impact on our automotive SCF sales as well as you know on the PPS sales? Because our you know majority of the business on the FCFS that is on the PPS side comes from us. So if you can elaborate on that and you know how it can impact us.
Deepak Joshi
See I mean I think that is quite understandable. When the tariff was at speed we were able to I mean make. I mean not lose the customer but in, in at the same time, you know the sales were little affected because we were not able to do it freely with 50% of the tariff Right now going forward when I mean we have like we don’t see any such challenge this year. In fact we see a growth, good growth potential coming from US market now because the real challenge has gone from the market.
Operator
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. So how do you see our relationship with them evolving? And you know it’s a large part of our PPS sales. So our sales will be impacted when their manufacturing plant comes online.
Deepak Joshi
No, as I said I mean this. I think there is a lot of confusion on that. Right. It’s the we they PPF they buy from other sources and as well and they got it, they get it manufactured similar excise they might be doing in future. I’m aware of everything but 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 skyrocketing in the coming years.
So we are not bothered with that. Right. Because their volumes we were not supplying 100% to them because they are couple of more suppliers as well. Right. I know some, some of this thing looks like that we are the only supplier or we are like too much dependent on them on tpf. That is not the case
Operator
But our relationship with them will continue.
Deepak Joshi
Oh definitely no, no. Definitely we are a big like 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 let me tell you with. I mean I can tell you with great pride that the product line is very different from what other supply. The base pair nano dispersion 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 prevailing product. And we have discussed that and we are continuing with our relations. That’s what their growth plan for the future. But of course we have our plans and we continue to be in great relationship with each other.
Operator
Sure. Thank you.
Deepak Joshi
Thank you.
Rahul Jain
Thank you. Anesthesia come from the line of Vinay Nandkarni from Hathaway Investments Private limited. Please go ahead.
Unidentified Participant
Yeah, it was a really good set of numbers in spite of a very very tough year. Just wanted one. Two questions. In short one is how do you see your April volume growth? Even this summer seems to be better than last year.
Deepak Joshi
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 2500 crore. We will maintain that. Because I. We cannot answer because this is a current ongoing. It will be like beyond the scope of us talking about this right now.
Unidentified Participant
Fine. I understand that. The. The other question was when I look at your US volumes you said around 45% of your business came from US. And 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. So that I. I just wanted to understand how could that be achieved with 45% of your business taking higher hit on margins.
Deepak Joshi
Yeah. So I think we discussed that even each quarter when despite 50% of 50% volume coming from there. But 50% tariff we still maintained because we grew on the other geographies quite handsomely. At the same time we. I mean we restricted our sales for just to continue without losing customer. That means we held our products 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.
So it was like a very strategic and well maintained supply chain where we were. We did not flush the material at the highest tariff. We tried to hold and navigated it through at the right time. Right. And in fact when this tariff was to come, we made more material and kept there to avoid that tariffs. I mean it was like prior to when we knew it is going to happen, we built up our inventory there and at the same time we liquidated when it was only, I mean it was utmost necessarily to be done. We did at that time and when it was when it went towards the low tariff and we cleared the book.
So this is like the strategy which we followed which worked for us.
Unidentified Participant
Yeah, I think this is a splendid city. Thanks a lot for your answer and all the best for the current year.
Deepak Joshi
Thank you. Thank you very much.
Rahul Jain
Thank you so much. Ladies and gentlemen, due to the time constant that was the last question for today, I now hand the conference over to the management for the closing remarks. Over to you team.
Deepak Joshi
Thank you. And I would like to on behalf of Garware High Tech Films limited management, I would like to thank all participants and we hope, I mean 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 and with this thank you very much and have I wish a great year ahead for everyone. Thank you.
Rahul Jain
Thank you sir. Ladies and gentlemen, on behalf of Garwari High Tech Films, that concludes this conference, thank you for joining us and you may now disclose to lengths.