GMM Pfaudler (505255) Q4 25/26 earnings summary

Executive summary

• Achieved 10% year-over-year consolidated revenue growth to ₹3,524 crore for FY26, with Q4 revenue up 17% YoY to ₹944 crore.

• EBITDA increased 11% YoY to ₹403 crore for FY26, with stable margins despite a challenging macroeconomic environment.

• PAT rose 5% YoY to ₹52 crore for FY26, with Q4 PAT surging 155% YoY to ₹15 crore; adjusted PAT was ₹99 crore (2.8% margin).

• Order intake rose 20% YoY to ₹3,714 crore, with a 34% higher opening backlog, providing strong revenue visibility.

• Significant organizational changes: new Group CEO and Deputy CFO appointed.

Financial highlights

• Free cash flow reached ₹367 crore, with free cash flow to EBITDA ratio above 90%.

• Net debt to adjusted EBITDA reduced to 0.4x; net debt to equity improved to 0.1x.

• EPS for FY26 at ₹12.86, up 9% YoY; Q4 FY26 EPS at ₹3.82, up 164% YoY.

• Consolidated gross margin for the quarter dropped to 55.4%, with margin volatility attributed to product mix and one-off large orders.

• Standalone net cash from operating activities for FY26 was ₹92.92 crore; consolidated net cash from operating activities was ₹388.80 crore.

Outlook and guidance

• Strong backlog and order intake provide confidence for the coming year, but management remains cautious due to global uncertainties.

• Board recommended a final dividend of ₹1 per share, total FY26 dividend at ₹2 per share, subject to shareholder approval.

• No formal multi-year guidance issued yet; management plans to provide a three-year vision once macroeconomic clarity improves.