Mumbai, Aug 7 (IANS) Process equipment manufacturer GMM Pfaudler Limited on Thursday reported a sharp decline of 53.7 per cent in its net profit for the April-June quarter (Q1) of FY26.
The company’s net profit fell to Rs 10.1 crore, compared to Rs 21.8 crore in the same period previous year, according to its stock exchange filing.
While profits took a hit, the company posted a modest 1.1 per cent increase in revenue from operations, reaching Rs 794 crore for the quarter.
On the operational front, however, GMM Pfaudler showed improvement. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 14.3 per cent to Rs 100.7 crore, up from Rs 88.1 crore in Q1 FY25.
EBITDA margins also improved to 12.7 per cent from 11.2 per cent in the same period previous year — indicating better cost efficiency.
GMM Pfaudler, known for manufacturing corrosion-resistant equipment used in the chemical and pharmaceutical industries, has been expanding globally through acquisitions.
In June, the company announced that its German subsidiary, Pfaudler Normag Systems GmbH, secured an international order worth €33.2 million, approximately Rs 330 crore.
Continuing its global push, GMM Pfaudler also announced in July that its Brazilian subsidiary, Pfaudler Ltda., will acquire 100 per cent of the share capital of SEMCO Tecnologia em Processos Ltda., Brazil. The deal is valued at Rs 158 crore.
The latest results follow a difficult March quarter when the company reported a net loss of Rs 27 crore, mainly due to one-time closure costs amounting to Rs 47.7 crore.
These included severance pay, inventory write-offs, and asset impairments. After tax adjustments, the total exceptional costs stood at Rs 43 crore for Q4 FY25 and Rs 50.4 crore for the full fiscal year.
Despite the recent profit dip, GMM Pfaudler’s stock has gained around 9 per cent so far this year.
On Thursday, however, the stock closed lower at Rs 1,288 apiece on the Bombay Stock Exchange (BSE), down Rs 23.30 or 1.78 per cent.
–IANS
pk
