GMM Pfaudler (505255) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached ₹902.34 crore, up 14% sequentially and 12% year-on-year, with EBITDA at ₹122 crore, up 20% QoQ and 27% YoY, and PAT at ₹41.43 crore, up 288% QoQ and 136% YoY.

• H1 FY26 revenue was ₹1,696.89 crore, up 7% YoY, with EBITDA up 21% YoY and PAT up 29% YoY.

• Order intake for Q2 FY26 was ₹878 crore, with a record order backlog of ₹2,146 crore.

• SEMCO (Brazil) and GV (Poland) acquisitions completed and consolidated; SEMCO contributed $20 million to the order backlog.

• Interim dividend of ₹1 per share announced for FY26.

Financial highlights

• Q2 FY26 EBITDA margin improved to 13.5% from 12.7% in Q1 FY26 and 11.8% in Q2 FY25.

• PAT margin for Q2 FY26 was 4.4%, up from 1.3% in Q1 FY26 and 2.1% in Q2 FY25.

• EPS for Q2 FY26 stood at ₹9.22, a 271% increase YoY.

• Net debt increased to ₹544.50 crore as of September 30, 2025, from ₹433.64 crore as of March 31, 2025.

• Net cash generated from operating activities for H1 FY26 was ₹64.76 crore, down from ₹117.35 crore in H1 FY25.

Outlook and guidance

• India business expected to have a strong year, with a well-diversified backlog across product lines.

• Europe remains slow in chemicals and pharma, but new sectors and systems business show promise; US market shows improvement, with potential upside from Make in US and Biosecure Act.

• Focus on growth from non-traditional markets such as Mining, Metal & Minerals, and Water Treatment post-SEMCO acquisition.

• Management targets double-digit growth in India and sustainable, moderate growth internationally.

• The Board remains focused on growth through strategic acquisitions and operational integration.