GMM Pfaudler Limited announced its financial results for the second quarter and half-year ended September 30, 2026. The company achieved its highest-ever quarterly order inflow, crossing INR1,000 crore sequentially and reaching INR1,200 crore. This strong performance reflects robust demand across its business divisions, alongside ongoing efforts in restructuring European operations to improve profitability and efficiency.
GMM Pfaudler Reports Strong Q2 FY27 Performance with Record Order Inflow
GMM Pfaudler Limited has announced a significant surge in its order intake for the second quarter of Fiscal Year 2027 (Q2 FY27), marking its highest-ever quarterly performance. The company’s order inflow for the quarter reached INR1,200 crore, building on the previous quarter’s strong momentum and more than doubling sequentially. This achievement underscores the resilience and growth trajectory of GMM Pfaudler’s diversified business portfolio.
Key Financial Highlights and Growth Drivers
The strong order inflow was broad-based, with contributions from all four business divisions, indicating healthy demand across various sectors. Key industries driving these orders include pharmaceuticals (especially CDMO and peptides), petrochemicals, fertilizers, defence, energy, power, and metals & minerals. The company’s diversified portfolio, strong order pipeline, and established technology capabilities are identified as key factors supporting this growth.
For the first half of FY27 (H1 FY27), the consolidated order backlog stood at a record INR2,446 crore, up 14% year-on-year, providing strong visibility for the second half of the fiscal year. Consolidated revenue for Q2 FY27 grew by 18% year-on-year, reaching INR1,065 crore. H1 FY27 revenue saw a growth of 17% year-on-year to INR1,989 crore.
Operational and Financial Restructuring Initiatives
GMM Pfaudler is actively engaged in a transformation program aimed at building a globally integrated organization with improved accountability, simpler decision-making, and a more competitive cost structure. A significant part of this involves addressing structural profitability challenges in certain European operations, which reported an EBITDA loss of approximately INR43 crore in H1 FY27 due to industry-wide resets, plant closures, and low investment. The company is implementing a restructuring program focused on aligning costs with business volumes, enhancing manufacturing efficiency, and establishing a more competitive European footprint. This includes shifting manufacturing activities to Poland and workforce reduction measures in Germany.
Financially, GMM Pfaudler has made progress in strengthening its balance sheet by repaying approximately INR116 crore of net debt during H1 FY27. The company is also focusing on rationalizing fixed costs, refinancing, and simplifying its group structure.
Outlook for FY27
Looking ahead to FY27, GMM Pfaudler expects continued double-digit revenue growth, supported by momentum across its business divisions. The reported EBITDA margin is projected to be around 10%-11%, including the loss-making entities. The company highlighted that its core business operates at EBITDA margins of 14%-15%, with the adjusted margin guidance reflecting the underlying earnings potential.
The management expressed confidence in the company’s underlying business strength and its positioning for improved profitability and sustainable growth, driven by strong order momentum and a more competitive operating model.
Source: BSE
