GMM Pfaudler reports mixed Q4 results amid manufacturing restructuring

GMM Pfaudler reported quarterly revenue of ₹807 crore for Q4FY25, up 9 per cent year-on-year, while full-year revenue declined 7 per cent to ₹3,199 crore. The company’s EBITDA margin for the quarter stood at 11.5 per cent, with annual EBITDA falling 20 per cent compared to the previous year.

Shares of GMM Pfaudler Ltd were trading at ₹1,176.50 down by ₹89.30 or 7.05 per cent on the NSE today at 11.50 am.

The corrosion-resistant technology manufacturer generated strong free cash flow of ₹318 crore in FY25, improving by ₹97 crore over the previous year. Order intake reached ₹3,102 crore, up 3 per cent annually, though order backlog decreased 3 per cent to ₹1,636 crore.

GMM Pfaudler is executing a global manufacturing footprint optimisation programme, closing sites in Leven, UK and Hyderabad, India, while establishing a new low-cost facility in Poland. The company completed the Hyderabad closure and expects to finish the UK site closure by Q2FY26.

The India business showed significant improvement in the second half, with Q4 revenue of ₹252 crore and EBITDA margin of 17.4 per cent. The opening order backlog for India increased 20 per cent to ₹549 crore for FY26.

Managing Director Tarak Patel cited challenges from the chemical and pharmaceutical sector slowdown and geopolitical uncertainties, particularly affecting international operations due to unclear US tariff policies. The company appointed Gregory Gelhaus as Chief Transformation Officer and recommended a final dividend of ₹1 per share, bringing total FY25 dividend to ₹2 per share.

Published on May 22, 2025