GMM Pfaudler (505255) Q2 26/27 earnings summary

Executive summary

• Record Q2 order intake of INR 1,198 crore, up 36% YoY; H1 orders reached INR 2,204 crore, up 17%, and backlog stood at INR 2,446 crore, up 14%.

• Q2 revenue rose 18% YoY to INR 1,064.62 crore; H1 revenue reached INR 1,989.38 crore, up 17%.

• Core EBITDA margins were 15.9% in Q2 and 15.2% in H1 excluding loss-making European entities; reported margins were 10.3% and 10.2%.

Financial highlights

• Q2 EBITDA was INR 110 crore, down 9% YoY, and PAT was INR 35.13 crore versus INR 37.68 crore; both increased sequentially.

• H1 EBITDA was INR 204 crore, down 8% YoY; PAT was INR 57.23 crore, up 20%.

• Q2 consolidated PBT was INR 50.28 crore versus INR 61.69 crore YoY; H1 PBT was INR 90.48 crore versus INR 93.30 crore.

• Consolidated EPS was INR 7.40 in Q2 versus INR 8.86 YoY; H1 EPS was INR 12.72 versus INR 11.34.

• Standalone Q2 revenue was INR 279.35 crore and net profit INR 17.32 crore; H1 revenue was INR 514.84 crore and net profit INR 28.47 crore.

Outlook and guidance

• FY27 guidance calls for double-digit revenue growth and reported EBITDA margin of 10%-11%; adjusted margin guidance is 14%-15% excluding loss-making European entities.

• H2 FY27 margins are expected to improve sequentially; Europe is expected to at least break even, with Germany targeted to return to profitability next year.

• FY27 priorities include executing the record backlog, cost efficiencies, greater use of low-cost manufacturing and resetting European costs; fuller transformation benefits are expected from FY28.

• FY28 priorities include stronger growth and margins and improved earnings conversion from lower finance costs; no FY28 revenue or margin guidance was set.