A global leader in specialised process equipment has secured new business in the defence sector. Its German subsidiary recently finalised a significant contract to supply advanced acid recovery systems to a major European defence manufacturer, highlighting its expanding role in critical industrial applications.
GMM Pfaudler Limited’s stock, with a market capitalisation of Rs. 5,318 crores, rose to Rs. 1,188.80, hitting a high of up to 3.14 percent from its previous closing price of Rs. 1,152.60. However, the stock over the past year has given a negative return of 11 percent.
Order Details
GMM Pfaudler’s German subsidiary, Pfaudler Normag Systems GmbH, has secured a major order worth EUR 33.2 million (approx. Rs. 330 crore) from a European customer. The contract involves designing, engineering, and supplying complete acid recovery equipment and systems.
The client is a leading European manufacturer of weapons and tools used in both defence and civilian sectors. The project is expected to be completed over four years. The company will receive 30 percent of the payment upfront and expects strong revenue from this deal. Due to confidentiality, the customer’s name has not been disclosed. As of FY25, order intake is at Rs. 3,102 crores, up 3 percent compared to the previous year.
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FY25 Segment Breakup
In FY25, the company’s revenue mix shows that technologies formed the biggest share across all segments. On a consolidated basis, 58 percent of revenue came from technologies, followed by 29 percent from services and 13 percent from systems.
In the standalone business, technologies contributed a massive 86 percent, showing heavy dependence on this segment, while services and systems had minimal contributions of 8 percent and 6 percent, respectively. For the international segment, the revenue mix was more balanced: 47 percent from technologies, 37 percent from services, and 16 percent from systems, indicating a more diversified business model overseas.
Looking at order intake, the overall pattern is similar, with Technologies again taking the lead at 55 percent of consolidated orders, followed by Services (30 percent) and Systems (15 percent).
Q4 Financial Highlight
The company reported revenue of Rs. 807 crore in Q4FY25, up 8.9 percent YoY from Rs. 741 crore in Q4FY24, and slightly higher than Rs. 801 crore in Q3FY25. Over the last three years, it has maintained a sales CAGR of 8 percent, supported by consistent top-line growth.
However, profitability declined sharply. The company posted a net loss of Rs. 28 crore in Q4FY25, compared to a profit of Rs. 25 crore in Q4FY24 and Rs. 40 crore in Q3FY25. The 3-year profit CAGR stands negative at -6 percent, though return on equity (ROE) has delivered a healthy 3-year CAGR of 16 percent.
Written By Fazal Ul Vahab C H
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