GMM Pfaudler , a leading manufacturer of engineered equipment for the chemical and pharmaceutical industries, has reported a robust performance in the first quarter, with significant improvements in profitability and order intake.

Financial Highlights

The company delivered stable revenue for the quarter, with consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showing a strong year-on-year growth of 14%. The India business performed exceptionally well, with EBITDA growing by an impressive 45% compared to the same quarter last year.

EBITDA margins also saw notable improvement:

• Consolidated EBITDA margin improved to 12.70%
• Standalone EBITDA margin reached 15.70%

Strong Order Intake and Backlog

GMM Pfaudler secured a robust order intake of ₹1,004.00 crores during the quarter, marking a significant increase of:

• 14% year-on-year
• 52% quarter-on-quarter

This strong performance was primarily driven by the company's systems and services business.

The current order backlog stands at ₹1,906.00 crores, representing:

• 7% increase year-on-year
• 17% increase quarter-on-quarter

This healthy backlog provides good visibility for upcoming quarters.

Business Expansion and Market Outlook

The company is in the final stages of completing the acquisition of SEMCO, which will mark its entry into South American markets. This strategic move is expected to expand GMM Pfaudler's global mixing platform to $65.00 million.

In India, the business shows signs of recovery, with investments returning in the pharmaceutical and chemical sectors. However, the international business remains cautious due to global uncertainties.

Challenges

The company faced a ₹20.00 crore foreign exchange loss due to Euro appreciation. Additionally, GMM Pfaudler reported a high tax rate of 68% for the quarter, attributed to its international group structure.

Management Commentary

Tarak Patel, Managing Director of GMM Pfaudler, commented on the results: "We have delivered a stable revenue this quarter with a strong improvement in profitability, largely driven by our India business. Our focus on execution and growth in India, coupled with strategic initiatives in international markets, positions us well for the future."

The company's management expressed optimism about the Indian market, noting increased inquiries and opportunities from various sectors, including agrochemicals. They also highlighted the potential benefits of the SEMCO acquisition in expanding their presence in South America.

GMM Pfaudler continues to focus on cost optimization and operational efficiency, particularly in its international operations, to navigate the current global economic uncertainties and position itself for future growth.

Deutsche Bank Group has disclosed the creation of encumbrance over a significant portion of GMM Pfaudler Limited's equity shares, representing 9.17% of the company's total share capital. This move is tied to term loan facilities obtained by two shareholders from Barclays Bank PLC.

Key Details of the Encumbrance

• Total Shares Encumbered: 4,121,960 equity shares
• Percentage of Total Share Capital: 9.17%
• Shareholders Involved:
  • Petunia Investments Limited: 3,709,766 shares (8.25%)
  • Carillon Investments B.V.: 412,194 shares (0.92%)

Loan Facility Agreements

The encumbrance is a result of term loan facilities provided by Barclays Bank PLC to the shareholders. Key points include:

• Facility Agreements Date: August 7, 2025
• Security Arrangement: Charges created on GMM Pfaudler shares
• Legal Documents:
  • Composite Share Charge agreement (for Petunia Investments)
  • Composite Share Pledge agreement (for Carillon Investments)

GMM Pfaudler's Share Capital Structure

Regulatory Compliance

The disclosure was made in accordance with Regulation 29(1) read with Regulation 29(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, commonly known as the Takeover Code.

Impact and Implications

While this encumbrance does not represent a change in actual shareholding, it signifies a significant financial transaction involving a substantial portion of GMM Pfaudler's shares. Such arrangements can potentially impact control and decision-making dynamics, depending on the terms of the loan facilities and the nature of the encumbrance.

Investors and market participants will likely monitor this development closely, as it involves a considerable stake in GMM Pfaudler, a company known for its presence in the pharmaceutical and chemical processing equipment sector.

The disclosure ensures transparency in the market regarding potential changes in control or influence over the company's shares. As the loan facilities mature in 2025, stakeholders will be keen to observe any further developments or changes in the ownership structure of these encumbered shares.