GMM Pfaudler (505255) Q3 25/26 earnings summary

Executive summary

• Revenue for the nine months increased 8% year-over-year to ₹2,580 crore, with EBITDA up 14% to ₹327 crore and margins stable to slightly improved.

• Q3 FY26 consolidated revenue was ₹883 crore, flat sequentially and up 10% year-over-year, with EBITDA at ₹105 crore and a margin of 11.9%.

• Order intake for Q3 FY26 reached ₹961 crore, up 9% sequentially and 20% year-over-year, with backlog at an all-time high of ₹2,205 crore, up 27% year-over-year.

• Diversification strategy is gaining traction, with 50% of order intake and backlog now from non-traditional industries such as defense, nuclear, oil & gas, and metals/minerals.

• Profit after tax for Q3 FY26 was ₹32 crore, with an adjusted PAT margin of 3.6% after accounting for exceptional items related to labor code provisions and workforce reduction in Germany.

Financial highlights

• Nine-month revenue up 8% year-over-year to ₹2,580 crore; EBITDA up 14% to ₹327 crore; EBITDA margin for nine months increased from 12% to 12.7%.

• Q3 FY26 EBITDA margin was 11.9%, down from 13.5% in Q2 FY26; PAT for Q3 FY26 was ₹32 crore, down 19% sequentially and 31% year-over-year, impacted by exceptional items.

• Gross margin for the quarter was 60.1%, compared to 63% in previous quarters, attributed to product mix.

• Q3 FY26 EPS (adjusted) was ₹7.28, down 21% sequentially and 31% year-over-year; 9M FY26 EPS (adjusted) at ₹18.98.

• Order intake for the quarter: INR 290 crore from India, INR 600+ crore international; backlog: INR 550 crore India, INR 1,600 crore international.

Outlook and guidance

• Q4 expected to be strong in India for revenue and shipments, with continued order intake momentum.

• Management targets mid-term EBITDA margin of 16%-18%, driven by growth in higher-margin non-glass-lined businesses and operational efficiencies.

• No specific FY27 growth guidance provided; management will update after Q4.

• The company continues to monitor regulatory changes, especially regarding new labour codes, and will adjust financial reporting as needed.

• India business continues to improve, driven by investments in Pharma, Oil & Gas, and Nuclear, while Chemicals remain weak.