Please find enclosed the transcript of the earnings conference call for the quarter ended March 31, 2026, conducted on May 21, 2026.
GMMPFAUDLR · price
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GMM Pfaudler delivered steady FY26 performance with revenue up ~10% and EBITDA up ~11% to INR 403 crores. India business outperformed with 12% revenue growth, 24% EBITDA growth, and 40% PAT growth. Order intake surged 20% to INR 3,714 crores with backlog up 34%, providing strong revenue visibility. The company achieved INR 367 crores free cash flow (up INR 49 crores) and reduced net debt to adjusted EBITDA ratio to 0.4x from 0.5x. Nearly 50% of orders came from non-traditional industries like semiconductors, defence, and oil & gas, showing successful diversification. Germany restructuring is complete, expected to save INR 45 crores annually from FY27. Management targets 15% EBITDA margin in medium term versus current ~11.5% and expects improvement in FY27, but remains cautious due to geopolitical uncertainties and weak chemical sector.
Strong order backlog and diversification provide revenue visibility, but margin pressure in Q4 and high interest costs from inherited financing structure limit near-term PAT growth. The ongoing tax and financing restructuring should improve EBITDA-to-PAT conversion going forward.