GMM Pfaudler Q2 FY27 Revenue Rises 18% as Margins Decline

GMM Pfaudler Limited reported consolidated Q2 FY27 revenue of ₹1,065 crore, up 18% year-on-year, but its EBITDA margin fell 312 basis points to 10.3% and profit after tax declined 7% to ₹35 crore. The result highlights stronger sales and order inflow alongside continuing pressure on profitability.

What did GMM Pfaudler report for Q2 FY27?

GMM Pfaudler reported consolidated revenue of ₹1,065 crore for the quarter ended September 30, 2026. Revenue increased 15% sequentially and 18% from a year earlier, according to the revised investor presentation released on November 4, 2026. The company presented unaudited standalone and consolidated results for both the quarter and first half of FY27.

Quarterly EBITDA was ₹110 crore, which was 18% higher than the preceding quarter but 9% below the year-earlier level. Profit after tax was ₹35 crore, up 59% quarter-on-quarter but down 7% year-on-year. Earnings per share stood at ₹7.40, rising 39% sequentially and 16% year-on-year.

The revenue performance was supported by a higher order intake of ₹1,198 crore during the quarter, up 19% from the prior quarter. The order backlog reached ₹2,446 crore, a 7% sequential increase. These figures indicate that the company entered the second half with a sizable set of orders to execute.

Why did GMM Pfaudler's margins decline despite revenue growth?

GMM Pfaudler's EBITDA margin declined to 10.3% in Q2 FY27, down 312 basis points from the corresponding quarter of the previous year. PAT margin was 3.3%, down 88 basis points year-on-year. Thus, the reported sales growth did not translate into year-on-year growth in operating profit or net profit.

The presentation states that losses in European entities weighed on margins. The company has identified margin improvement through cost efficiencies and the ramp-up of its global supply chain as FY27 priorities. It has also referred to restructuring benefits as a factor behind its FY28 outlook, although the release does not quantify the expected benefit.

For FY27, GMM Pfaudler has indicated double-digit revenue growth and an EBITDA margin target of 10-11%. It has separately referred to an adjusted EBITDA margin range of 14-15%, excluding loss-making European entities. The reported Q2 margin of 10.3% is within the stated FY27 reported-margin range.

How did GMM Pfaudler perform in the first half of FY27?

GMM Pfaudler's financial snapshot lists H1 FY27 consolidated revenue at ₹1,989 crore, up 17% year-on-year. H1 EBITDA was ₹204 crore, down 8% year-on-year, while EBITDA margin was 10.2%. H1 PAT increased 20% to ₹57 crore, with a PAT margin of 2.9%, and EPS rose 12% to ₹12.72.

H1 order intake was ₹2,204 crore, up 17% year-on-year, and the reported backlog was ₹2,446 crore, up 14% year-on-year. Revenue by division for the first half was ₹966 crore for CRT, ₹586 crore for PPT, ₹165 crore for HET and ₹273 crore for PST.

The supplied material also contains a separate statement that puts H1 FY27 revenue at ₹2,289 crore. That differs from the ₹1,989 crore shown in the detailed H1 financial snapshot. Investors should refer to the revised investor presentation and the company's subsequent disclosures for confirmation of the applicable H1 revenue figure.

What does the order backlog mean for GMM Pfaudler investors?

GMM Pfaudler's ₹2,446 crore order backlog provides visibility over revenue that is yet to be executed. The backlog exceeded Q2 revenue and was 14% higher than the prior-year level on an H1 basis. Its execution is therefore central to the company's stated aim of delivering double-digit revenue growth in FY27.

However, the quarterly results show that revenue growth alone has not restored year-on-year profitability growth. The fall in EBITDA and PAT, combined with the decline in operating margin, keeps attention on cost control, the performance of European businesses and the pace at which global supply-chain initiatives are implemented.

No share-price movement, dividend decision or revised formal financial forecast was provided in the supplied disclosures. The board met on November 4, 2026 to consider the unaudited results, and the company scheduled an earnings call for November 5, 2026 at 12:00 IST to discuss the Q2 and H1 performance.

Conclusion

GMM Pfaudler delivered 18% year-on-year revenue growth in Q2 FY27 and expanded its order backlog to ₹2,446 crore, showing continued demand across its operations. But EBITDA fell 9% and the EBITDA margin declined to 10.3%, underscoring the impact of European losses and the importance of operational improvement.

The next disclosed event is the November 5, 2026 earnings call, where investors can look for more detail on backlog execution, European restructuring and the route to the company's FY27 margin range of 10-11%. Clarification of the differing H1 revenue figures appearing in the supplied material will also be relevant.