GMM Pfaudler Subsidiary Wins ₹330 Crore Export Order from European Client

21 Jun 2025 , 08:41 PM

GMM Pfaudler’s German arm, Pfaudler Normag Systems GmbH, has landed a sizable export order from a European client, estimated at around ₹330 crore. The agreement, valued at €33.2 million, involves delivering a full suite of acid recovery systems. This includes everything from engineering design to final delivery of the equipment.

The client, whose identity remains under wraps due to confidentiality clauses is said to manufacture weapons, ammunition, and tools used in both defence and civilian applications.

As part of the contract terms, the company will receive 30% of the payment upfront. The project is expected to span four years, offering a stable revenue stream over that period. GMM Pfaudler indicated that this deal could contribute meaningfully to its topline across the execution timeline.

On the financial side, between January and March, it reported a net loss of ₹27 crore. That compares to a ₹27.6 crore profit during the same quarter last year. The loss mainly stems from a one-off expense linked to plant closure. The exceptional cost, which included severance payouts, asset impairments, and inventory write-offs, stood at ₹47.7 crore before taxes.

For the full year, total exceptional costs reached ₹50.4 crore. Despite the bottom-line pressure, the company saw an uptick in revenue. It posted ₹806.6 crore in Q4 revenues a rise of about 9% compared to last year.

However, profitability took a clear hit. EBITDA fell sharply to ₹83.3 crore, down nearly 58% from the previous year’s Q4 number. Operating margins slid as well, narrowing to 10.3% from 12.1% a year ago. That dip reflects broader cost pressures, perhaps worsened by restructuring efforts or global supply headwinds.

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