GMM Pfaudler (505255) Q3 25/26 earnings summary

Executive summary

• Nine-month consolidated revenue grew 8% year-over-year to ₹2,580.39 crore, with EBITDA up 14% to ₹327 crore and margins stable or slightly improved; Q3 FY26 revenue was ₹883.50 crore, up 10% year-over-year.

• Order intake for Q3 FY26 was ₹961 crore, up 9% sequentially and 20% year-over-year; backlog reached 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 outside chemicals and pharma, including defense, nuclear, metals, minerals, and oil & gas.

• 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 statements for the quarter and nine months ended December 31, 2025, were reviewed by independent auditors with no material misstatements.

Financial highlights

• Q3 FY26 consolidated EBITDA margin was 11.9%, down from 13.5% in Q2 FY26; nine-month EBITDA margin improved to 12.7% from 12% year-over-year.

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

• Q3 FY26 PAT was ₹32 crore, down 19% sequentially and 31% year-over-year, impacted by exceptional items; EPS (adjusted) was ₹7.28.

• Standalone Q3 FY26 revenue was ₹242 crore, up 2% year-over-year; EBITDA margin at 13.8%.

• International Q3 FY26 revenue was ₹663 crore, up 10% year-over-year; EBITDA margin at 10.0%.

Outlook and guidance

• Q4 expected to be strong in India for revenue and shipments, with continued order intake momentum, especially in Pharma, Oil & Gas, and Nuclear.

• 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.