Shares of GMM Pfaudler Ltd fell over 8% to ₹1,164 on Thursday after the company reported a 40% year-on-year decline in net profit for the March quarter. The net profit stood at ₹15 crore, compared to ₹25 crore in the same period last year.
Despite a 9% rise in revenue to ₹807 crore and a 4% increase in EBITDA to ₹93 crore, the market reacted negatively to the profit drop and continued sectoral weakness. The company’s order backlog slightly declined to ₹1,636 crore from ₹1,689 crore YoY, reflecting softer demand in the chemical and pharma sectors.
Managing Director Tarak Patel attributed the weak performance to global trade uncertainties and geopolitical tensions. “This year has been challenging… However, our focus on diversification and cost optimisation has helped us navigate effectively,” he said.
The company’s global strategy includes the optimisation of its manufacturing footprint, with a new plant coming up in Poland and closures planned for Leven (UK) and Hyderabad (India). GMM Pfaudler also appointed Greg as Chief Transformation Officer to accelerate strategic initiatives.
The company reiterated its commitment to long-term growth, despite headwinds, and remains focused on enhancing profitability and managing costs in FY26.
