GMMPFAUDLRNSEQ2 FY26November 13, 2025

GMM Pfaudler Limited

9,476words

122turns

15analyst exchanges

7executives

Download PDF ↗GMMPFAUDLR stock page →

Management on call

Tarak Patel

MANAGING DIRECTOR, GMM PFAUDLER LIMITED

Thomas Kehl

CHIEF EXECUTIVE OFFICER (INTERNATIONAL

Gregory Gelhaus

CHIEF TRANSFORMATION OFFICER,

Alexander Poempner

GROUP CHIEF FINANCIAL OFFICER, GMM PFAUDLER LIMITED

Dhananjay Bajpeyee

CEO, HEAVY ENGINEERING TECHNOLOGIES

Dhaval Rajput

SR. GENERAL MANAGER FINANCE & ACCOUNTS, GMM PFAUDLER LIMITED

Mittal Mehta

COMPANY SECRETARY & COMPLIANCE OFFICER

Key numbers — 36 extracted

INR 902 crore

f by giving you a quick update on the performance highlights of the quarter: Our revenue stood at INR 902 crores, up 14% quarter-on-quarter and 12% year-on-year. Our EBITDA for this quarter is up 20% quarter-o

14%

uick update on the performance highlights of the quarter: Our revenue stood at INR 902 crores, up 14% quarter-on-quarter and 12% year-on-year. Our EBITDA for this quarter is up 20% quarter-on-quarter

12%

nce highlights of the quarter: Our revenue stood at INR 902 crores, up 14% quarter-on-quarter and 12% year-on-year. Our EBITDA for this quarter is up 20% quarter-on-quarter and 27% year-on-year and s

20%

INR 902 crores, up 14% quarter-on-quarter and 12% year-on-year. Our EBITDA for this quarter is up 20% quarter-on-quarter and 27% year-on-year and stands at INR 122 crores. Our EBITDA margin currently

27%

ter-on-quarter and 12% year-on-year. Our EBITDA for this quarter is up 20% quarter-on-quarter and 27% year-on-year and stands at INR 122 crores. Our EBITDA margin currently is at 13.5%. The revenue f

INR 122 crore

year. Our EBITDA for this quarter is up 20% quarter-on-quarter and 27% year-on-year and stands at INR 122 crores. Our EBITDA margin currently is at 13.5%. The revenue for H1 FY’26 is up 7% year-on-year and EBI

13.5%

r-on-quarter and 27% year-on-year and stands at INR 122 crores. Our EBITDA margin currently is at 13.5%. The revenue for H1 FY’26 is up 7% year-on-year and EBITDA is up 21% year- on-year. Order intake w

stands at INR 122 crores. Our EBITDA margin currently is at 13.5%. The revenue for H1 FY’26 is up 7% year-on-year and EBITDA is up 21% year- on-year. Order intake was strong this quarter with INR 878

21%

TDA margin currently is at 13.5%. The revenue for H1 FY’26 is up 7% year-on-year and EBITDA is up 21% year- on-year. Order intake was strong this quarter with INR 878 crores of order intake and the or

INR 878 crore

s up 7% year-on-year and EBITDA is up 21% year- on-year. Order intake was strong this quarter with INR 878 crores of order intake and the order backlog currently stands at INR 2,146 crores. The acquisition of S

INR 2,146 crore

strong this quarter with INR 878 crores of order intake and the order backlog currently stands at INR 2,146 crores. The acquisition of SEMCO has also been completed this year and we have consolidated SEMCO for t

rs,

e obviously on our way and the market does seem to support it. Hopefully, over the next few quarters, we can see additional order intake and growth for some of the markets, which we have

Advertisement

Guidance — 20 items

Tarak Patel

opening

“Like I mentioned to you in the last call, we expect India to have a good year this year and with the order backlog that we currently have, which is well diversified across our three business lines, which is glass-lined, non-glass-lined and heavy engineering, we do see the India business doing quite well for this financial year.”

Tarak Patel

opening

“SEMCO has a strong order book and a strong brand name in the local market and we expect SEMCO to have a nice growth going forward over the next few quarters.”

Alexander Poempner

opening

“However, in the next half year, the remainder of this financial year, we expect an improvement again.”

Tarak Patel

“So, we have that capability and hopefully we will be able to build that.”

Tarak Patel

“But Lilly, probably it will be something to do with Mounjaro or one of the new generation GLP drugs, right?”

Tarak Patel

“I think a lot of people, and I have done a lot of research on this, I think that it is definitely going to be something that in the future a lot of people will be consuming for better health and longevity.”

Tarak Patel

“And we do expect order intake from this industry at least in this quarter as well.”

Alexander Poempner

“We will conduct the PPA now in the following, or in up to 12 months, and then the goodwill will be reduced.”

Koushik Mohan

“And this will be depreciated over the next five years?”

Alexander Poempner

“What we do with all the previous acquisitions as well, we conduct a purchase price allocation, and then we will allocate part of the value to, for example, customers or technologies, and the remainder will be the goodwill.”

Risks & concerns — 5 flagged

So, I think what has helped us over the last maybe few quarters also, like why we have seen a slowdown in our core business of glass-lined and our core industries of chemical and pharma, I think our diversification strategy, our ability to cater to newer markets and new industries has helped us make up some of the shortfalls.

— Tarak Patel

ASME stamps, which obviously is more difficult from Europe.

— Tarak Patel

So, I really cannot put a number because we are living in a very uncertain time, right?

— Tarak Patel

Because, as said before, China remains weak.

— Alexander Poempner

So, besides the Shikhar program and heavy engineering segment, the price undercutting slowdown has led to this margin expansion, or basically those two were the only main reasons for margin.

— Yug Jhaveri

Advertisement

Q&A — 15 exchanges

Sure. Hi Tarak, good evening. Tarak, first question. Could you call out how much is SEMCO's order backlog in the overall backlog that you reported?

Alexander Poempner

We have 20 million in the Backlog, 20 million USD. Understood. So, when I look at your overall international order intake, I mean, is recovery still expected to be possibly later down the year? Are you seeing any green shoots there? Because we have seen a considerable recovery on the India business. How is the situation on the international side? I understand on the chemical side it is not still picking up, but possibly the rest of the industry? So, maybe I will add and then I will jump in here and then Thomas can add a little bit about what he has seen in Europe and the US. But as I mentioned

Sure. Thank you so much.

Management

I just wanted to understand, from last year to this year, our goodwill has grown by INR 200 crores. Can I get the clarity, what is this exactly? How much for this acquisition, recent acquisition, and what is this accounting, like INR 200 crores accounting?

Alexander Poempner

This is Alex. If I understood correctly, you asked regarding the INR 200 crore increase in goodwill. This is mainly due to the SEMCO acquisition. So, as of now, we have considered everything in goodwill. We will conduct the PPA now in the following, or in up to 12 months, and then the goodwill will be reduced. But the increase is just coming from SEMCO, and a little bit from the Polish acquisition. Okay. And this will be depreciated over the next five years? This is my understanding. No. What we do with all the previous acquisitions as well, we conduct a purchase price allocation, and then we

Hi. Very good evening, sir. My question is that just recently your U.S. Biosecure Act was passed in both the houses, and it is due to this being become a law. So, what traction do we see in the next, let us say, two to three years, and then the next five years in terms of reshoring by the U.S. pharma companies for this?

Tarak Patel

So, you are talking about the Biosecure Act. So, yes, it has been passed. Like I said, and I wrote that in our press release as well, that we mentioned that the U.S. could see some investments coming in from the Make in U.S. initiatives, the Biosecure, the tariff situation. Currently are we seeing a lot of movement on the ground? Probably not. I think we probably will have to wait a few months for probably some of this to materialize. We have had requests once maybe in the last couple of months, once or twice, for U.S. made equipment to be supplied quickly for a U.S. site, where they clearly m

Yes. Thank you so much for the opportunity. And first of all, congratulations to the team of GMM Pfaudler for delivering better results, actually. So, my first question, sir, was related to our, especially performance on the international foray. The global situation is still under uncertainty because of the U.S. tariffs, actually. So, going forward in H2, is the uncertainty looks to prolong ? Or do you think that there will be some sort of improvement, which we saw in Q2, in terms of new order intakes as well as in non-glass- lining technologies, especially? So, what do you think of H2, especi

Tarak Patel

So, I will start and maybe we will look at each market separately. But again, we cannot paint the same brush for the whole international business. There are definitely segments which are growing. Our Edlon business in the U.S., driven by semiconductors, is growing. Our SEMCO business in Brazil, now driven by metals and minerals, water treatment is growing. In Europe, we have businesses in acid recovery and systems that are growing. So, it is different, right? So, I think chemical and pharma in Europe is slow. Maybe, Thomas, you might want to add in terms of Germany, the Western Europe countrie

Hi, sir. Good evening and thanks for the opportunity. Sir, my first question, like what Semaglutide we are talking a lot. About a couple of years back, process flow industry, process were also, a lot of talks were going on. So, can you give a bit color to how that process flow, which saves a lot of energy, so how we are placed and what is happening and do we have old technology like including glass-lined reactor that we have for chemical business?

Tarak Patel

So, okay, so there are two different things. One is semaglutide is a real story because there is consumption here. There is more and more people using. I think last quarter, last month, Ozempic was the best-selling drug in India. So, it is picking up. So, that is going to grow for sure, 100%. Okay. Coming back to process flow technologies, there is a lot of talk. There has been a lot of talk. But first it became a buzzword. But there is definitely movement. We have actually created an entire flow chemistry set up in our facility in Karamsad where customers can come and do trials with us. So, w

Yes, thanks for the opportunity. Sir, I just wanted to understand, as you are talking about revival in the domestic market, how much of your order book pipeline would have grown in the last six months? Or is there a number that you anticipate?

Tarak Patel

So, I think last quarter, India order book number, I think we were about INR 90 crores or INR 100 crores higher in order book this quarter versus previous quarter. If you look at the India order book trends, they are definitely on an upward trajectory. Glass lining has still been slow. HE and obviously the other businesses have done quite well. But some amount of glass lining, like I mentioned, has come back in chemicals, and specifically agrochemicals. So, we are seeing some investment. Is it back to putting up three plants in a year? Not yet, but it is coming back slowly. So, how much of the

Okay.

Management

Hi. Thanks for the opportunity. Sir, I just wanted to understand our growth profile. Let us say if I look at GMM over two, three year horizon, if you can help me understand what is the top-line growth that GMM can do over two, three year? And if you can dissect that growth between, let us say, an Indian operation and rest of Indian operations.

Tarak Patel

You are talking about, sorry, future growth ? Yes, because all the opportunities that you have highlighted, let us say, semaglutide, nuclear. So, I really cannot put a number because we are living in a very uncertain time, right? So, we are building the building blocks. I think the foundation is strong. We are diversifying. You know, when you look at GMM Pfaudler for 10 years, you will probably see a very different company. Today, if you go and ask 90% of the people who know GMM for that, they will say glass-lined, right? In 10 years from now, I do not think people should know us for glass-lin

Hi, thanks for the opportunity. I had a couple of questions. The first one was on the international technologies revenue. So, that came in at about 9.2% growth on a Y-O-Y basis. So, could you give us some flavor on this in terms of, was it mainly driven by US or was there contribution from Europe as well? Some geographical favor within the international business on the technologies part of the revenue.

Tarak Patel

Sorry Alex, you want to go ahead? We also, what we have there in the revenues growth is, it includes the mixing business. And please consider that we also have the first time consolidation of SEMCO included. However, as said, we also have our Edlon business included in the technologies and also, Edlon is doing well or doing okay, put it this way. So, it has several aspects. I do not want to explicitly focus on the market. Because, as said before, China remains weak. So, the growth in technologies is not coming from China and also, Europe, we already said before, there is a little bit behind. I

Thanks for the opportunity. So, first question on the FOREX part. So, for the first half of the year, we have around unrealized FOREX loss, right? of INR 56 crores, which we explained in last quarter also is because of the Euro appreciation against USD. So, given where Euro is, right, and if it is stable, would this be, this non-cash item stay as it is? There is a chance it gets reversed.

Alexander Poempner

Sorry, I think I apologize if I am not fully understood. You refer to the FX loss that we especially faced in the first quarter, and if there is another impact due to the potential FX changes. So, we more or less, we faced the loss in the first quarter. And in the first quarter, there was a change of roughly 10% in the USD- Euro FX rate and therefore, we had the loss, which also more or less triggered this high tax rate. In the second quarter, if you compare it, the FX change was not so material. Therefore, we did not have this loss again. Now, looking into the future, we do not really see how

Hi, sir. Very good afternoon. So, I had just a couple of questions. First, on the domestic market side, so there has been 31% growth this quarter and the margins have been quite sustainable from past two quarters, if you see, versus what it has been a year ago. So, the price undercutting scenario, which we were facing last year, has it slowed down? And order revival, you mentioned agrochemical. However, on the specialty chemical side, is there new orders coming or conversion happening? And on the same, order book has not grown much this H1 FY’26. So, are you anticipating any growth in H2 or it

Tarak Patel

So, yes. So, I think, one, I think I will talk about the order book in H1 first. I think overall, it is slightly, I mean, it was made up in H2 because we had a good quarter in Q2. Q1 was slow and Q2 was much better, which puts us in a good position now. Do keep in mind that we had large opportunities in heavy engineering, which were not finalized in Q1 and in Q2. One was, but because of the capacity utilization, we have now been able to add to that. So, you will see order intake, I think, increase, with HE coming in, you will see large orders from that vertical also increasing. Glass-lined, co

Sure, ma'am.

Management

Yes. Hello, sir. Sir, can you throw some light on the heavy engineering business? What exactly we are doing on the nuclear side or on the green hydrogen side? What is our market opportunity there? What kind of revenues we currently do and what kind of revenues we aspire to do there? And, sir, when you talk about approvals, what kind of approvals are these?

Tarak Patel

So, without giving away too much competitive advantage, I will ask Dhananjay because he is an expert in this field to maybe say a few words. So, as you are asking for nuclear, there is split order from NPCIL which is going on. So, we are going to supply equipment for India's nuclear program for NPCIL and the EPCs which will be selected by NPCIL. So, this will be a continuous opportunity over the next five years. And we will keep supplying. Approvals you are talking about. So, there are EPC companies in the U.S. and Europe which we are getting approvals. And the approvals which our acquisition

Thank you. Thank you everyone for joining us today. It was a pleasure interacting with you and we look forward to many such interactions during the course of the year. Take care and see you soon.

Management

Speaking time

Tarak Patel

Moderator

Alexander Poempner

Jaiveer Shekhawat

Kunal

Praveen Kumar

Bhavik Shah

Mayank Bhandari

Piyush

Dhananjay Bajpeyee

Advertisement

Opening remarks

Dhaval Rajput

Thank you. Good evening, ladies and gentlemen. A very warm welcome to all of you in the Q2 and H1 FY’26 earnings call of GMM Pfaudler Limited. The Earnings Presentation was uploaded on Stock Exchanges today and is also available on our website. Hope all of you have a chance to go through it. From the management, we have with us our Managing Director – Mr. Tarak Patel, our CEO of International Business – Mr. Thomas Kehl, our CFO – Mr. Alexander Poempner, our CTO – Mr. Gregory Gelhaus, and our Compliance Officer – Ms. Mittal Mehta. We will give you a brief overview of the performance of the company after which we will get into the Q&A. Before we begin with the overview, a brief disclaimer: The presentation that was uploaded on the stock exchanges and also on our website, including all our call discussions that will happen now, contains certain forward-looking statements regarding our business prospects and profitability, which are subject to several risks and uncertainties. The actual re

Tarak Patel

Thank you, Dhaval. Good evening, everybody. Let me start off by giving you a quick update on the performance highlights of the quarter: Our revenue stood at INR 902 crores, up 14% quarter-on-quarter and 12% year-on-year. Our EBITDA for this quarter is up 20% quarter-on-quarter and 27% year-on-year and stands at INR 122 crores. Our EBITDA margin currently is at 13.5%. The revenue for H1 FY’26 is up 7% year-on-year and EBITDA is up 21% year- on-year. Order intake was strong this quarter with INR 878 crores of order intake and the order backlog currently stands at INR 2,146 crores. The acquisition of SEMCO has also been completed this year and we have consolidated SEMCO for this quarter as well as consolidated the backlog that SEMCO brings along with it. Overall, just to give you a little bit more flavor in terms of what is going on, our India business has performed quite well both in terms of revenue and in terms of order intake. Like I mentioned to you in the last call, we expect India

Alexander Poempner

Thanks a lot, Tarak. Hello, everyone. In addition to the financial highlights that Tarak already presented, I would like to touch on three key areas. First is on the consolidation side. We have completed the two acquisitions and considered first-time consolidation of SEMCO, the latest acquisition in Brazil, as well as the JV in Poland. You will see it in the books. We acquired SEMCO for a total purchase price of USD18.5 million, which corresponds to INR 162 crores. And the investment in Poland was 11 million Polish zloty, which is roughly INR 25 crores. You see in the accounting that both acquisitions have been accounted for as Goodwill only, and we will conduct, as usual, the PPA in the next 12-month period and will adjust the goodwill accordingly. The acquisition of SEMCO, due to the size, was funded partly by external debt. We draw down an acquisition facility of 10 million euros. The rest of the purchase price was financed by internal cash. Another point is the working capital. As

Advertisement

← All transcripts GMMPFAUDLR stock page →

GMM Pfaudler Limited

Market Movers