GMM Pfaudler Ltd

GMM Pfaudler’s Financial Outlook: Gearing to Improve Below 1.0x by 2026 📉

- CRISIL reaffirmed GMM Pfaudler’s credit rating at 'Crisil AA-' but revised outlook from 'Positive' to 'Stable'.

- Short-term bank facilities rating reaffirmed at 'Crisil A1+' with total rated facilities at Rs.600 Crore.

- Revenue declined 7% to Rs 3,199 crore in fiscal 2025 due to subdued demand in chemical & agrochemical sectors.

- EBITDA margin dropped to 11.9% (from 13.8% in FY24) due to lower fixed cost absorption & one-time items.

- Adjusted networth at Rs 931 crore, gross debt at Rs 1,132 crore as of March 31, 2025.

- Gearing at ~1.1x (March 2025), expected to improve below 1.0x by March 2026.

- Strong liquidity: Annual cash accrual of Rs 320-400 crore vs. debt obligations of Rs 60-130 crore.

- Leading position in global glasslined equipment (GLE) market with strong regional shares.

- Challenges include high reliance on chemical/pharma segments & large working capital needs.

- ESG profile is supportive: 100% worker safety training & 71% independent board composition.