GMM Pfaudler Q2 FY27 Results (NSE: GMMPFAUDLR)
Signal: Margin pressure
The read
The key inflection is revenue acceleration to ₹1,064.62 Cr, +18.0% YoY after +12.1% in Q2FY26, but the margin arc has turned down: derived EBITDA margin fell 260bps YoY to 11.8% as raw-material intensity rose to 43.8% of revenue from 39.9%, making earnings growth less durable despite overseas momentum.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,064.62 Cr | +18.0% | +15.1% |
| Net profit | ₹33.3 Cr | -16.4% | |
| EPS | ₹7.4 | -16.5% | |
| EBIT margin | 11.8% |
P&L walk
Revenue accelerated to ₹1,064.62 Cr, +18.0% YoY and +15.1% QoQ, but gross margin compressed to 56.2% from 63.3% as raw-material cost rose to 43.8% of revenue from 39.9%; derived EBITDA declined 3.9% YoY to ₹125.22 Cr and PAT attributable to the parent fell 16.4% to ₹33.30 Cr.
Segments
Overseas drove the group, with revenue up 24.5% YoY to ₹802.94 Cr and segment result at ₹54.49 Cr, while India revenue grew only 1.8% to ₹261.68 Cr and its result fell 21.4% YoY to ₹27.23 Cr.
Key positives
- Consolidated revenue increased 18.0% YoY to ₹1,064.62 Cr, accelerating from 12.1% YoY in Q2FY26.
- Overseas revenue grew 24.5% YoY to ₹802.94 Cr and contributed ₹54.49 Cr of segment result.
- Employee, labour and other operating expenses rose 8.4% YoY to ₹488.03 Cr, below revenue growth of 18.0%.
Key concerns
- Gross margin compressed 710bps YoY to 56.2% as cost of materials consumed rose to 43.8% of revenue from 39.9%; the filing does not disclose the driver.
- Derived EBITDA declined 3.9% YoY to ₹125.22 Cr and margin fell 260bps to 11.8% despite 18.0% revenue growth.
- India segment result declined 21.4% YoY to ₹27.23 Cr on only 1.8% revenue growth.
- Operating cash flow fell 36.5% YoY to ₹41.12 Cr while inventories and receivables, loans and other assets absorbed ₹206.76 Cr in H1FY27.
Research and educational content only. Not investment advice.