GMM Pfaudler (505255) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue was ₹795 crore, up 1.2% year-over-year, with EBITDA up 14% year-over-year, driven by strong India performance and margin improvements at both consolidated (12.7%) and standalone (15.7%) levels.

• Order intake reached ₹1,004 crore, up 14% year-over-year and 52% quarter-on-quarter, driving backlog to ₹1,906 crore, a 7% year-over-year and 17% quarter-on-quarter increase.

• Standalone net profit for Q1 FY26 was ₹16.70 crore, more than double the previous year, while consolidated net profit attributable to equity holders was ₹11.15 crore.

• Entered agreement to acquire SEMCO in Brazil for $18.5 million, expected to close in Q2 FY26, expanding the global mixing platform and providing entry into South American markets.

• CRISIL rating reaffirmed at AA- with outlook revised to Stable; SES ESG rating improved to 71.8.

Financial highlights

• Consolidated EBITDA margin for Q1 FY26 was 12.7%, up 143 bps year-over-year; standalone EBITDA margin at 15.7%, up 447 bps year-over-year.

• PAT at ₹10 crore, down 54% year-over-year, impacted by ₹19.8 crore non-cash forex loss on inter-company borrowings.

• Standalone revenue at ₹231 crore, up 3.6% year-over-year; standalone EBITDA up 45% year-over-year to ₹36 crore.

• International revenue at ₹589 crore, up 1% year-over-year; international EBITDA at ₹61 crore.

• Consolidated finance costs rose to ₹42.91 crore in Q1 FY26 from ₹25.00 crore in Q1 FY25.

Outlook and guidance

• India business expected to remain strong, with continued investments in pharma, chemicals, and anticipated growth in agrochemicals.

• International outlook remains cautious due to global uncertainties, but opportunity pipeline is growing, especially in non-glass-lined and mixing segments.

• SEMCO acquisition expected to boost mixing business revenue to $60 million and EBITDA to $8 million.