GMM Pfaudler (505255) Q3 25/26 earnings summary

Executive summary

• Revenue for the nine months increased 8% year-over-year to ₹2,580.39 crore, with EBITDA up 14% to ₹327 crore and margins stable to slightly improved.

• Q3 FY26 consolidated revenue was ₹883.50 crore, up 10% year-over-year, with EBITDA at ₹105 crore and margin of 11.9%.

• Order intake for Q3 FY26 reached ₹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.

• PAT for Q3 FY26 was ₹32 crore, with an adjusted PAT margin of 3.6% after accounting for exceptional items.

Financial highlights

• Nine-month consolidated revenue rose 8% year-over-year to ₹2,580.39 crore; EBITDA increased 14% to ₹327 crore, margin at 12.7%.

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

• Standalone Q3 FY26 revenue was ₹242.42 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%.

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

Outlook and guidance

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

• Management targets a mid-term EBITDA margin of 16%-18%, contingent on global economic recovery and operational improvements.

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

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

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