Garware Technical Fibres reported an 83.4% year-on-year increase in net profit to ₹58.6 crore for the second quarter of FY27, compared with ₹31.9 crore in the corresponding quarter last year. Revenue rose 33% to ₹462.6 crore from ₹347.9 crore, supported by strong performance in its salmon aquaculture and US sports businesses, along with sustained growth in the domestic market.
Earnings before interest, tax, depreciation and amortisation , a measure of operating profit, increased 65.3% year-on-year to ₹80 crore from ₹48.4 crore. The EBITDA margin expanded to 17.3% from 13.9% in the year-ago quarter. Salmon aquaculture, US sports businesses drive growthVayu Garware, chairman and managing director of Garware Technical Fibres, said the company delivered a strong operational performance during the quarter, driven by its salmon aquaculture and US sports businesses, alongside sustained growth in the domestic market.
The geosynthetics business also continued to grow profitably during the quarter, with the company expressing a positive outlook for the segment. Its value-added rope business continued to deliver results in both international and domestic markets. Raw material inflation, freight costs remain concernsGarware Technical Fibres said inflationary pressures from higher raw material prices and elevated freight costs on international routes persisted during the quarter.
The company has been addressing these challenges through price increases, prudent procurement strategies and operational efficiencies, while maintaining customer relationships and service levels. Management also said the company remained focused on innovation and new product development to address evolving customer needs.
It will continue to monitor the impact of the West Asia conflict and other disruptions on oil prices, raw material costs and global logistics. First-half profit rises 46.5%The company's profit after tax for the first half of FY27 increased 46.5% year-on-year, according to the management statement.
Garware Technical Fibres also reported a significant improvement in free cash flow and return on capital employed during the first half compared with the corresponding period last year. The company said its strong balance sheet, improved working capital management, disciplined capital allocation and better cash flow conversion positioned it to pursue growth opportunities while maintaining a focus on profitability.
Shares of Garware Technical Fibres closed 0.21% lower at ₹750.10 on October 29, ahead of the earnings announcement.