GMM Pfaudler Reports Q3 Net Loss on One-Time Provisions, Revenue Climbs 10%
GMM Pfaudler, a leading manufacturer of corrosion-resistant glass-lined equipment, unveiled its financial results for the December quarter today, revealing a net loss of ₹8 crore. This marks a significant downturn from the net profit of ₹41.48 crore recorded in the same period last year, primarily driven by substantial one-time provisions.
Key Factors Behind the Profit Decline
According to the company's earnings filing, the decline in net profit was largely attributable to specific provisions. These included a ₹12.7 crore provision related to the implementation of new labour codes at GMM Pfaudler India and a more substantial ₹43.6 crore provision for severance and retiral benefits associated with workforce reduction at its German subsidiary, Pfaudler GmbH.
Revenue and Operational Performance Highlights
On a positive note, the company reported consolidated revenue from operations of ₹883.50 crore for the quarter, representing a 10.23% improvement over the ₹801.5 crore reported in the year-ago quarter. Operationally, EBITDA stood at ₹105 crore, showing a marginal increase from ₹96 crore in the December 2024 quarter.
Strong Order Intake and Backlog Growth
Order intake during the quarter demonstrated robust growth, improving by 20% year-on-year to ₹961 crore. This surge has propelled the total order backlog to an impressive ₹2,205 crore, indicating strong future revenue potential.
Management Commentary on Q3 FY26 Results
Tarak Patel, Managing Director of GMM Pfaudler, commented on the quarterly performance. "On a nine-month basis, we have achieved revenue growth of 8% and an EBITDA increase of 14%. Although the global business environment remains challenging, we have again recorded strong order intake this quarter and continue to build our backlog, which now stands at ₹2,205 crore, representing a 27% increase year-on-year."
He further elaborated on strategic adjustments, "As part of our efforts to streamline our global manufacturing footprint, we have agreed to a workforce reduction at Pfaudler GmbH in Waghäusel, Germany, and we have accounted for this adjustment in our quarterly results."
Patel also highlighted the company's diversification efforts, "Our diversification strategy is gaining momentum, with nearly 50% of our order intake now coming from non-traditional industries. This shift is not only enhancing our resilience but also positioning us well for the upcoming financial year."
GMM Pfaudler Share Price Trends and Historical Performance
The company's shares have faced challenges in gaining momentum within the Indian stock market, experiencing significant stress since November 2022 and falling to multi-year lows. In January, the shares dipped below the ₹1,000 level, reaching their lowest point since April 2020 at ₹950 per share.
From its record high of ₹2,304 per share, the stock has corrected by 57% and is currently trading at approximately ₹994 per share. In terms of yearly performance, the stock concluded 2025 with a 7% decline, marking its second consecutive year of annual losses.
Despite this sharp correction from its peaks, the stock has delivered a remarkable 3,534% gain over the past 12 years. Between 2013 and 2021, the stock enjoyed a sustained bull phase, closing each of those years positively and achieving a cumulative gain of nearly 5,800%.
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