GMM Pfaudler overseas sales drive revenue as profit falls

GMM Pfaudler Limited reported consolidated revenue from operations of Rs 1,064.62 crore for the quarter ended September 30, 2026, up Rs 162.28 crore year on year, as overseas revenue increased Rs 157.78 crore to Rs 802.94 crore; consolidated profit before tax declined to Rs 50.28 crore from Rs 61.69 crore.

What drove GMM Pfaudler’s September-quarter revenue growth?

Overseas operations drove GMM Pfaudler’s revenue increase in the September 2026 quarter. Overseas revenue reached Rs 802.94 crore, compared with Rs 645.16 crore in the quarter ended September 30, 2025, an increase of Rs 157.78 crore. That rise accounted for most of the Rs 162.28 crore increase in consolidated revenue from operations, which rose from Rs 902.34 crore to Rs 1,064.62 crore.

India revenue also increased, rather than declining, to Rs 261.68 crore from Rs 257.18 crore a year earlier. The Rs 4.50 crore India increase was far smaller than the overseas increase. Based on the reported segment total, overseas operations accounted for about 75.4% of September-quarter revenue, while India accounted for about 24.6%.

The sequential comparison showed revenue growth in both segments. Overseas revenue rose from Rs 699.63 crore in the quarter ended June 30, 2026 to Rs 802.94 crore in the September quarter, while India revenue rose from Rs 225.13 crore to Rs 261.68 crore. Consolidated revenue from operations increased by Rs 139.86 crore sequentially from Rs 924.76 crore.

How did GMM Pfaudler’s segment profit change?

GMM Pfaudler’s segment profit before tax and interest declined year on year despite higher revenue. Overseas segment profit before tax and interest was Rs 54.49 crore in the September 2026 quarter, compared with Rs 56.73 crore a year earlier. India segment profit before tax and interest fell more sharply, to Rs 27.23 crore from Rs 34.65 crore.

Total segment profit before tax and interest consequently declined to Rs 81.72 crore from Rs 91.38 crore. Finance costs rose to Rs 31.44 crore from Rs 29.69 crore, resulting in consolidated profit before tax of Rs 50.28 crore, down Rs 11.41 crore from Rs 61.69 crore in the restated prior-year quarter.

The quarter-on-quarter pattern was different. Overseas segment profit before tax and interest increased from Rs 44.65 crore in the June 2026 quarter to Rs 54.49 crore, and India segment profit increased from Rs 18.28 crore to Rs 27.23 crore. Total segment profit before tax and interest rose from Rs 62.93 crore to Rs 81.72 crore, while profit before tax increased from Rs 40.20 crore to Rs 50.28 crore.

Profit for the September 2026 quarter was Rs 35.13 crore, compared with Rs 37.68 crore a year earlier, even as it rose from Rs 22.10 crore in the preceding quarter. Profit attributable to equity holders of the parent was Rs 33.30 crore, versus Rs 39.84 crore a year earlier and Rs 23.90 crore in the June 2026 quarter.

What do GMM Pfaudler’s half-year figures show?

GMM Pfaudler reported half-year revenue from operations of Rs 1,989.38 crore for the period ended September 30, 2026, compared with Rs 1,696.89 crore a year earlier. Overseas revenue increased Rs 276.26 crore to Rs 1,502.57 crore, while India revenue increased Rs 16.23 crore to Rs 486.81 crore.

The half-year segment-profit comparison did not match the revenue growth. Overseas segment profit before tax and interest was broadly unchanged at Rs 99.14 crore, compared with Rs 99.20 crore in the restated prior-year period. India segment profit before tax and interest declined to Rs 45.51 crore from Rs 66.70 crore, reducing total segment profit before tax and interest to Rs 144.65 crore from Rs 165.90 crore.

Consolidated profit before tax for the six months fell to Rs 90.48 crore from Rs 93.30 crore, while profit for the period rose to Rs 57.23 crore from Rs 47.83 crore. Profit attributable to equity holders of the parent increased to Rs 57.20 crore from Rs 50.99 crore. The prior-year figures were restated following the finalisation of purchase price allocation for acquisitions completed in the year ended March 31, 2026.

How did GMM Pfaudler’s assets, liabilities and cash change?

GMM Pfaudler reported segment assets of Rs 3,309.39 crore in overseas operations as at September 30, 2026, compared with Rs 839.55 crore in India. Overseas assets increased from Rs 3,093.81 crore a year earlier, and India assets increased from Rs 799.57 crore. Total segment assets were Rs 4,148.94 crore, compared with Rs 3,893.38 crore at September 30, 2025.

Overseas segment liabilities were Rs 2,329.06 crore at September 30, 2026, up from Rs 2,173.85 crore a year earlier. India segment liabilities decreased to Rs 495.22 crore from Rs 517.94 crore. Total segment liabilities increased to Rs 2,824.28 crore from Rs 2,691.79 crore, while total equity was Rs 1,324.66 crore compared with Rs 1,232.99 crore at March 31, 2026.

Net cash generated from operating activities during the six months was Rs 41.12 crore, down from Rs 64.76 crore in the comparable prior-year period. The group used Rs 51.04 crore in investing activities and reported net financing cash outflows of Rs 198.91 crore, including Rs 100.47 crore of long-term borrowing repayments and Rs 47.99 crore of finance costs paid.

Cash and cash equivalents fell to Rs 426.55 crore at September 30, 2026 from Rs 635.38 crore at March 31, 2026. The group’s balance sheet showed non-current borrowings of Rs 456.79 crore and current borrowings of Rs 275.34 crore at September 30, compared with Rs 544.60 crore and Rs 290.46 crore, respectively, at March 31, 2026.

What acquisition accounting update did GMM Pfaudler disclose?

GMM Pfaudler said it had finalised the purchase price allocation under Indian Accounting Standard 103, or Ind AS 103, for its prior-year acquisitions as at September 30, 2026. The group said there was no change in the provisional fair values of assets and liabilities determined as at March 31, 2026.

During the year ended March 31, 2026, the group acquired a 100% stake in SEMCO Tecnologia em Processos Ltda., Brazil, through its Brazilian subsidiary for approximately Rs 162 crore. It also acquired a 51% stake in GMM Inox sp. z o.o. with an approximate capital contribution of Rs 25.30 crore. The acquisitions resulted in goodwill of Rs 88.09 crore during that financial year.

The filing restated the September 2025 consolidated profit before tax to Rs 61.69 crore from previously reported Rs 64.21 crore. Half-year profit before tax was restated to Rs 93.30 crore from Rs 95.82 crore, while cash-flow figures for the prior-year September half remained unchanged, including Rs 64.76 crore of operating cash generation.

Conclusion

GMM Pfaudler’s September-quarter revenue growth was principally overseas-led, with the overseas segment contributing Rs 157.78 crore of the group’s Rs 162.28 crore year-on-year revenue increase. India revenue also rose, but by Rs 4.50 crore. Higher revenue did not translate into higher segment profit year on year, and consolidated profit before tax declined to Rs 50.28 crore.

The next reported periods will show whether the September-quarter sequential increase in segment profit can continue after overseas revenue reached Rs 802.94 crore. The disclosed acquisition accounting matter is resolved, with the purchase price allocation finalised at September 30, 2026 and no change from the provisional fair values determined at March 31, 2026.