Q2 profit rose 58.96% QoQ, helped by a lower tax rate
Revenue growth slightly outpaced costs, but other income was 29.91% of pre-tax profit and interest expense rose 38.32% QoQ.
Filed 04 Nov 2026, 20:15 IST · after market close · GMM Pfaudler Ltd (GMMPFAUDLR)
Key takeaways
- Consolidated revenue grew +15.12% QoQ, slightly faster than expenses at +14.85%, lifting operating margin by 0.21 percentage points.
- Net profit rose +58.96% QoQ as the tax rate fell 14.89 percentage points, while other income contributed 29.91% of pre-tax profit.
- Order intake was Rs 1,198 cr and backlog was Rs 2,446 cr, with management saying major Q2 wins came from the petrochemical and power sectors.
Price around the results
Tax drove the sharp rise in consolidated profit
Revenue increased +15.12% QoQ and operating profit rose +17.55%, as expenses grew a slightly slower +14.85%; operating margin therefore expanded by 0.21 percentage points. Pre-tax profit grew +25.07%, but net profit rose faster because the tax rate fell 14.89 percentage points to 30.13%. Other income accounted for 29.91% of pre-tax profit, making it a material contributor to reported earnings.
Petrochemical and power orders lifted the backlog
Management said GMM Pfaudler won major orders in the petrochemical and power sectors during Q2FY27. The company reported order intake of Rs 1,198 cr, up 19% QoQ, while backlog stood at Rs 2,446 cr, up 7% QoQ and 14% YoY. These order metrics grew faster than the quarter's consolidated revenue, providing the main operating context for the result.
Margin improved but remained below the Industrials median
The 10.35% operating margin was 1.23 percentage points below the 11.58% median for 133 Industrials peers that had reported the quarter. The improvement from Q1FY27 was limited even though revenue grew slightly faster than expenses. Interest expense rose +38.32% QoQ and depreciation increased +7.12%, which reduced the benefit of the operating-profit increase further down the income statement.
Management outlined refinancing and legal-structure changes
Management said the group plans refinancing within 12–18 months to restructure and reduce debt levels. It also said the company is reviewing and simplifying its legal-entity structure within 18–24 months. These are management-stated initiatives rather than changes reflected in the current quarter's reported numbers.
Results were filed after market close
The consolidated results were filed after market close on 04 Nov 2026 at 20:15 IST. The stock's post-results move is not assessed in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,065 cr | ₹925 cr | +15.12% |
| Other income | ₹15 cr | ₹10 cr | +53.31% |
| Expenses | ₹954 cr | ₹831 cr | +14.85% |
| Operating profit | ₹110 cr | ₹94 cr | +17.55% |
| Operating margin (%) | 10.35% | 10.14% | — |
| Interest | ₹31 cr | ₹23 cr | +38.32% |
| Depreciation | ₹44 cr | ₹41 cr | +7.12% |
| Profit before tax | ₹50 cr | ₹40 cr | +25.07% |
| Tax | ₹15 cr | ₹18 cr | -16.30% |
| Net profit | ₹35 cr | ₹22 cr | +58.96% |
| EPS (₹) | ₹7.40 | ₹5.32 | +39.10% |
Operating margin of 10.35% compares with a Industrials sector median of 11.58% across 133 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported a Q2 FY27 backlog of ₹2,446 crore, up 7% quarter on quarter and 14% year on year.
New orders
- Q2 FY27 saw major orders won in the petrochemical and power sectors.
- Order intake was ₹1,198 crore and the backlog was ₹2,446 crore in Q2 FY27.
New initiatives
- The group plans refinancing within 12–18 months to restructure and reduce debt levels.
- The company is reviewing and simplifying its current legal-entity structure within 18–24 months.
What to watch
- Whether operating margin remains at or above 10.35% while interest expense is contained after its +38.32% QoQ rise.
- Whether the tax rate remains near 30.13% after the 14.89-percentage-point QoQ decline.
- Whether backlog remains at least Rs 2,446 cr and order intake exceeds Rs 1,198 cr.