GMM Pfaudler Bags Rs 3 Bn European Defence Contract
Process equipment manufacturer GMM Pfaudler announced that its wholly owned German subsidiary, Pfaudler Normag Systems GmbH, has secured an international order worth EUR 33.2 million (approximately Rs 3 billion). The contract was awarded by a European manufacturer engaged in light and medium weapons, ammunition, and tool production for both defence and civilian use.
According to the stock exchange filing on June 19, the four-year contract covers the design, engineering, and supply of complete end-to-end acid recovery equipment and systems. Pfaudler Normag will receive an upfront payment of 30 per cent upon signing the agreement. The identity of the client remains undisclosed due to confidentiality clauses.
GMM Pfaudler expects the project to contribute significantly to revenue over its execution period.
Financially, GMM Pfaudler reported a net loss of Rs 270 million for the January–March quarter, compared to a net profit of Rs 276 million in the same period last year. The loss excludes one-off closure-related costs totalling Rs 477 million, including severance payouts, inventory write-offs, and asset impairments. Total exceptional costs stood at Rs 430 million for Q4 FY25 and Rs 504 million for the full year.
Revenue from operations rose by 8.9 per cent year-on-year to Rs 8.07 billion, up from Rs 7.41 billion in the previous year’s fourth quarter. However, EBITDA fell by 57.5 per cent to Rs 833 million, with margins narrowing to 10.3 per cent from 12.1 per cent year-on-year.