GMM Pfaudler revenue rises 18% as EBITDA margin falls 320 bp

GMM Pfaudler Limited reported Q2 FY27 revenue of Rs 1,065 crore, up 18% year on year, while EBITDA margin fell 320 basis points to 10.3% from 13.5% and EBITDA declined 9% to Rs 110 crore. GMM Pfaudler ended the quarter with an order backlog of Rs 2,446 crore.

How fast did GMM Pfaudler’s Q2 FY27 revenue grow?

GMM Pfaudler’s consolidated Q2 FY27 revenue rose 15% quarter on quarter and 18% year on year to Rs 1,065 crore. This was the highest revenue in the five-quarter trend presented, exceeding Rs 925 crore in Q1 FY27 and Rs 902 crore in Q2 FY26. The presentation does not provide a revenue split by business division, geography or product category.

Revenue increased by Rs 140 crore from Q1 FY27 and by Rs 163 crore from Q2 FY26. The quarterly trend shows revenue moving from Rs 902 crore in Q2 FY26 to Rs 883 crore in Q3 FY26, Rs 944 crore in Q4 FY26, Rs 925 crore in Q1 FY27 and Rs 1,065 crore in Q2 FY27. This means the Q2 FY27 revenue result followed a sequential recovery after the Q1 FY27 level.

What affected GMM Pfaudler’s EBITDA margin in Q2 FY27?

GMM Pfaudler’s reported EBITDA margin was 10.3% in Q2 FY27, 320 basis points below 13.5% in Q2 FY26, as EBITDA fell 9% to Rs 110 crore despite 18% revenue growth. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 18% from Rs 94 crore in Q1 FY27, lifting the margin by 20 basis points from 10.1%.

The presentation identifies losses at European entities as an impact on group performance. It reports an EBITDA loss of Rs 43 crore from loss-making European entities in H1 FY27, amid a structural reset in Europe’s chemicals market that included plant closures and lower investment in new large-scale capacity. The source does not allocate that H1 loss between Q1 and Q2.

GMM Pfaudler reported a Q2 FY27 EBITDA margin of 15.9%, or EBITDA of Rs 139 crore, excluding loss-making European entities, compared with the reported 10.3% and Rs 110 crore. Management said it is consolidating the CRT European glass-lined manufacturing footprint, after closing the UK facility in Q3 FY25 and implementing German workforce-reduction measures in Q3 FY26. It also said PPT restructuring in Western Europe is ongoing, with Poland and India becoming lower-cost hubs for Europe.

Profit after tax, or PAT, was Rs 35 crore in Q2 FY27, up 59% from Rs 22 crore in Q1 FY27 but down 7% from Rs 38 crore in Q2 FY26. PAT margin was 3.3%, versus 2.4% in Q1 FY27 and 4.2% in Q2 FY26, while earnings per share were Rs 7.40, up 39% sequentially and down 16% year on year. The FY26 PAT figures were restated for Semco and GMM Inox Poland purchase-price accounting.

What does GMM Pfaudler’s Q2 FY27 order backlog show?

GMM Pfaudler ended Q2 FY27 with an order backlog of Rs 2,446 crore, up 7% quarter on quarter and 14% year on year. Q2 FY27 order intake was Rs 1,198 crore, up 19% from Q1 FY27 and 36% from Rs 878 crore in Q2 FY26. The order intake exceeded Q2 FY27 revenue of Rs 1,065 crore by Rs 133 crore.

The backlog rose by Rs 157 crore from Rs 2,289 crore at the end of Q1 FY27 and by Rs 300 crore from Rs 2,146 crore in Q2 FY26. It has also increased from Rs 1,636 crore at the end of FY25 and Rs 2,194 crore at the end of FY26. The presentation provides no timetable for converting this backlog into revenue.

GMM Pfaudler reported H1 FY27 order intake of Rs 2,204 crore, up 17% year on year. Management described pharmaceutical investment as continuing to be supported by contract development and manufacturing organisations and peptides, while chemical investment remained subdued because of global overcapacity. Its diversification outlook also cited demand in petrochemicals, defence, nuclear and thermal power, metals and minerals, and semiconductors.

How did GMM Pfaudler perform in H1 FY27?

GMM Pfaudler reported H1 FY27 revenue of Rs 1,989 crore, up 17% year on year, while EBITDA declined 8% to Rs 204 crore and EBITDA margin was 10.2%. The first-half numbers extend the Q2 pattern of revenue growth without comparable EBITDA growth. The presentation does not disclose the corresponding H1 FY26 revenue and EBITDA amounts.

H1 FY27 PAT rose 20% year on year to Rs 57 crore, while earnings per share rose 12% to Rs 12.72. These first-half profit measures differ from the Q2 comparison, in which PAT fell 7% year on year and earnings per share fell 16%. The presentation reports the figures but does not provide a reconciliation for the different year-on-year PAT movements.

The reported H1 FY27 EBITDA of Rs 204 crore equals the Rs 94 crore shown for Q1 FY27 plus the Rs 110 crore shown for Q2 FY27. Q2 revenue of Rs 1,065 crore accounted for more than half of the Rs 1,989 crore H1 total; the implied Rs 924 crore for Q1 differs by Rs 1 crore from the separately disclosed Rs 925 crore because the presentation uses rounded figures.

Conclusion

GMM Pfaudler delivered higher Q2 FY27 revenue and a larger order backlog, but reported EBITDA and EBITDA margin remained below the prior-year quarter. The 18% revenue increase to Rs 1,065 crore came alongside a 320-basis-point margin reduction, while Q2 order intake of Rs 1,198 crore lifted backlog to Rs 2,446 crore.

The next results will show the effect of management’s European restructuring, which includes CRT footprint consolidation and ongoing PPT restructuring in Western Europe. Investors can also watch whether the reported 15.9% Q2 FY27 EBITDA margin excluding loss-making European entities, compared with the 10.3% reported margin, changes as the restructuring proceeds and backlog is executed.