GMM Pfaudler's Q1 margin trails industrial peer median by 4.36 points
Interest, depreciation and a 45.02% tax rate limited the conversion of operating profit into consolidated net profit.
Filed 05 Aug 2026, 17:03 IST · after market close · GMM Pfaudler Ltd (GMMPFAUDLR)
Key takeaways
- Consolidated operating margin was 10.14%, 4.36 percentage points below the 14.5% median for 50 reported Industrials peers.
- Interest of Rs 22.73 cr and depreciation of Rs 40.61 cr absorbed much of Rs 93.73 cr operating profit, leaving net profit at Rs 22.1 cr.
- A 45.02% tax rate and Rs 9.81 cr of other income were significant features of the Rs 40.2 cr pre-tax profit.
Price around the results
Operating profit did not translate cleanly into net profit
Consolidated revenue of Rs 924.76 cr generated operating profit of Rs 93.73 cr, but interest of Rs 22.73 cr and depreciation of Rs 40.61 cr absorbed much of that operating earnings pool. Profit before tax was Rs 40.2 cr, while net profit came in at Rs 22.1 cr and EPS at Rs 5.32. The results were filed after market close on 5 August 2026.
Margin lagged the Industrials peer set
The 10.14% operating margin was 4.36 percentage points below the 14.5% median among 50 Industrials peers that had reported the quarter, placing GMM Pfaudler 15th from the bottom on this measure. Other income of Rs 9.81 cr was material relative to pre-tax profit of Rs 40.2 cr, so reported earnings included a meaningful non-operating contribution. The 45.02% tax rate further limited the conversion of pre-tax profit into net profit.
Mining and petrochemical orders broaden the reported pipeline
Management said Q1FY27 brought major orders in mining and petrochemicals, while the pipeline for non-traditional industries remained strong and was growing. The presentation said acquisitions had expanded the global footprint to 20+ sites and added complementary technologies to the product portfolio. Management also said it was organising the businesses into four global divisions and undertaking group-wide refinancing to restructure and reduce debt levels.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹925 cr |
| Other income | ₹10 cr |
| Expenses | ₹831 cr |
| Operating profit | ₹94 cr |
| Operating margin (%) | 10.14% |
| Interest | ₹23 cr |
| Depreciation | ₹41 cr |
| Profit before tax | ₹40 cr |
| Tax | ₹18 cr |
| Net profit | ₹22 cr |
| EPS (₹) | ₹5.32 |
Operating margin of 10.14% compares with a Industrials sector median of 14.50% across 50 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1 FY27 saw major orders won in the mining and petrochemical industries.
Guidance & outlook
- The pipeline for non-traditional industries remains strong and is growing.
Expansion
- Acquisitions expanded the company’s global footprint to more than 20 sites.
New products
- The company has added complementary technologies to its product portfolio through acquisitions.
New initiatives
- The company is organising its businesses into four distinct global divisions with clear accountability.
- The company is undertaking group-wide refinancing to restructure and reduce debt levels.
- The company is reviewing and simplifying its current legal entity structure as part of its group tax strategy.
What to watch
- Whether operating margin moves from the current 10.14%.
- Whether the tax rate changes from 45.02%.
- Whether interest expense changes from Rs 22.73 cr as the reported refinancing initiative progresses.