GMM Pfaudler Shares Price Drops Over 8% After Weak Q4 Results

GMM Pfaudler's shares price witnessed a sharp decline of over 8% on May 22, following the release of the company's underwhelming Q4 FY25 earnings. Despite revenue growth, profit margins were significantly hit due to elevated one-time costs and macroeconomic challenges.

Market Performance

• On May 22, GMM Pfaudler shares plunged over 8%, hitting an intraday low of ₹1,161.
• The decline follows a 14% gain earlier in May, which now appears to be a short-lived rally.
• The stock is currently:
  • 24% below its 52-week high of ₹1,530.80 (August 2024)
  • 22% above its 52-week low of ₹953 (April 2025)
• Over the past 12 months, GMM Pfaudler's share price has fallen 9.5%, reflecting overall investor caution.

Q4 FY25 Financial Snapshot

Despite some operational resilience, GMM Pfaudler posted a challenging set of results for the March 2025 quarter.

Revenue

• Revenue from operations rose by 8.9% YoY, reaching ₹806.6 crore (vs. ₹740.7 crore in Q4FY24).

EBITDA

• EBITDA fell sharply by 57.5% YoY to ₹83.3 crore.
• This reflects continued operational pressure across key segments.

EBITDA Margins

• EBITDA margins contracted to 10.3%, down from 12.1% a year earlier.

Net Profits

• Reported a consolidated net loss of ₹27 crore, compared to a net profit of ₹27.6 crore in Q4FY24.
• Excluding one-time costs (₹47.7 crore), the loss still reflects a tough quarter.
• Exceptional items post-tax stood at ₹43 crore in Q4FY25.

Full-Year FY25 Performance

The full-year performance mirrored the weak quarterly trend, impacted by industry headwinds and restructuring costs.

• Net Profit: ₹52.97 crore, down 69.81% YoY (vs. ₹175.47 crore in FY24)
• Revenue: ₹3,198.69 crore, a drop of 7.19% YoY (vs. ₹3,446.48 crore in FY24)

Company Operations and Strategic Updates

Despite short-term financial setbacks, GMM Pfaudler is focusing on long-term strategic initiatives.

• India Operations:
  • Revenue: ₹252 crore
  • EBITDA: ₹44 crore
  • Margin: 17.4%
  • Supported by higher volumes, product mix, and cost optimization
• Global Strategy:
  • New low-cost plant established in Poland to enhance cost competitiveness in Europe
  • Shutdown of the UK (Leven) and Hyderabad plants to streamline manufacturing

Order Book & Cash Flow

• Order Intake: ₹3,102 crore in FY25, up 3% YoY
• Order Backlog: ₹1,636 crore, down 3%
• Free Cash Flow: ₹318 crore, up ₹97 crore YoY

Dividend Announcement

• Final Dividend Proposed: ₹1 per share (face value ₹2)
• Total FY25 Dividend: ₹2 per share, including interim payout
• Final dividend subject to approval at the 62nd Annual General Meeting

Summary

The sharp correction in GMM Pfaudler's shares price reflects market reaction to its disappointing Q4 results. While revenue growth in India and global footprint optimization show strategic promise, margin pressures and net losses weighed heavily on investor sentiment.

Focusing on cost control and operational efficiencies will be crucial to rebuilding investor confidence and stabilizing the GMM Pfaudler share price.