GMM Pfaudler Q2 revenue rises 18%, margin falls to 10.3%

GMM Pfaudler Limited reported Q2 FY27 revenue of Rs 1,065 crore, up 18% year on year and 15% quarter on quarter, while its EBITDA margin fell to 10.3% from 13.5% in Q2 FY26. EBITDA was Rs 110 crore, 9% below the prior-year quarter but 18% above Q1 FY27.

What did GMM Pfaudler report in Q2 FY27?

GMM Pfaudler reported consolidated revenue of Rs 1,065 crore in Q2 FY27, compared with Rs 902 crore in Q2 FY26 and Rs 925 crore in Q1 FY27. The reported growth rates were 18% year on year and 15% quarter on quarter. Revenue was the highest in the five-quarter sequence shown, exceeding Rs 944 crore in Q4 FY26 and Rs 883 crore in Q3 FY26.

GMM Pfaudler recorded EBITDA, or earnings before interest, tax, depreciation and amortisation, of Rs 110 crore in Q2 FY27. This was Rs 16 crore above Rs 94 crore in Q1 FY27, but Rs 12 crore below Rs 122 crore in Q2 FY26. EBITDA had declined to Rs 75 crore in Q4 FY26 before increasing in each of the following two quarters.

Why was GMM Pfaudler's Q2 EBITDA margin below last year?

GMM Pfaudler reported an EBITDA margin of 10.3% in Q2 FY27, versus 13.5% in Q2 FY26 and 10.1% in Q1 FY27. Based on the rounded percentages in the presentation, the year-on-year difference is 320 basis points, where one basis point equals one-hundredth of a percentage point. The presentation does not give a cost-line breakdown or a 312-basis-point calculation for the margin change.

Revenue increased by Rs 163 crore year on year, while EBITDA decreased by Rs 12 crore, producing the lower Q2 FY27 margin. Sequentially, revenue increased by Rs 140 crore and EBITDA by Rs 16 crore, lifting margin by 20 basis points from 10.1% in Q1 FY27. The Q2 FY27 margin was above the 8.0% reported in Q4 FY26 but below the 11.9% in Q3 FY26 and 13.5% in Q2 FY26.

How did GMM Pfaudler's profit and EPS change?

GMM Pfaudler reported profit after tax, or PAT, of 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%, compared with 2.4% in Q1 FY27 and 4.2% in Q2 FY26. The presentation states that FY26 quarterly PAT figures were restated for Semco and GMM Inox Poland purchase price allocation, or PPA.

Earnings per share, or EPS, were Rs 7.40 in Q2 FY27, up 39% from Rs 5.32 in Q1 FY27 and down 16% from Rs 8.86 in Q2 FY26. EPS had been negative Rs 2.30 in Q3 FY26, then was Rs 3.82 in Q4 FY26 before rising in both reported FY27 quarters. Revenue, EBITDA, PAT and EPS all increased quarter on quarter, whereas EBITDA, PAT and EPS declined year on year despite the 18% revenue increase.

What does GMM Pfaudler's H1 FY27 performance show?

GMM Pfaudler reported H1 FY27 revenue of Rs 1,989 crore, up 17% year on year, and EBITDA of Rs 204 crore, down 8% year on year. The H1 EBITDA margin was 10.2%, 10 basis points below the Q2 FY27 margin of 10.3%. PAT was Rs 57 crore, up 20%, while EPS was Rs 12.72, up 12%.

GMM Pfaudler recorded H1 FY27 order intake of Rs 2,204 crore, up 17% year on year, and reported backlog of Rs 2,446 crore, up 14%. Q2 FY27 order intake was Rs 1,198 crore, up 19% quarter on quarter and 36% year on year, while India order intake was Rs 483 crore. Backlog increased by Rs 157 crore from Rs 2,289 crore at the end of Q1 FY27.

What market mix and corporate updates did GMM Pfaudler disclose?

GMM Pfaudler showed traditional industries at 44% of H1 FY27 order intake, compared with 42% in FY26, 33% in FY25 and 31% in FY24. The other two displayed categories each represented 28% in H1 FY27, although the graphic does not label those categories. Management said pharmaceutical investment remained strong, while chemical investment and outlook remained subdued because of global overcapacity.

For non-traditional industries, GMM Pfaudler cited demand or investment activity in petrochemicals, defence, nuclear and thermal power, metals and minerals, and semiconductors. It also disclosed repayment of about Rs 116 crore of net debt in H1 FY27, a CRISIL AA- rating with stable outlook, and a CRISIL ESG score of 61 for FY26 versus 50 for FY25. Gregory Gelhaus was appointed Group Chief Executive Officer and Ankit Nayyar Group Chief Financial Officer to provide oversight to four business divisions.

Conclusion

GMM Pfaudler's Q2 FY27 figures show higher sales and a sequential recovery in EBITDA, PAT and EPS, but lower year-on-year EBITDA, PAT and EPS. The Rs 1,065 crore revenue result was accompanied by a 10.3% EBITDA margin, leaving profitability below the 13.5% margin reported in Q2 FY26 despite improvement from 10.1% in Q1 FY27.

The next disclosed indicators to watch are conversion of the Rs 2,446 crore backlog and the level of new orders after Rs 1,198 crore of Q2 FY27 intake. Management's sector commentary identifies continued pharmaceutical investment and demand in petrochemicals, defence, power, metals and semiconductors, while chemical investment remains subdued.