PG Electroplast (533581) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw softer demand due to an early monsoon, impacting Room AC sales, but consolidated revenues still grew 14% year-over-year to INR 1,504 crores.

• Product business contributed 77% of revenues, with AC business up 15% and washing machines up 36%, supported by new platforms and capacity expansion.

• PG Technoplast, a 100% subsidiary, reported INR 1,211 crores in revenue with full ramp-up of the second Bhiwadi AC unit.

• Operating margins softened due to supply cost increases and negative operating leverage.

• The company remains confident in India's consumer durables market and is focused on scaling profitability and capital efficiency.

Financial highlights

• Consolidated Q1 FY26 revenue was INR 1,504 crores, up 14% year-over-year; EBITDA was INR 139 crores, up 3.5% YoY, with a margin of 9.3%.

• Net profit for Q1 FY26 was INR 66.7 crores, down from INR 84.9 crores in Q1 FY25, with a margin of 4.4%.

• Product business contributed INR 1,159 crores (77% of revenue); AC business contributed INR 1,015 crores (68% of revenue), up nearly 15%.

• Washing machine sales increased 36%; cooler sales were slightly lower due to the shortened season.

• Cash and equivalents at INR 911 crores at quarter-end; higher inventory levels impacted operating cash flows.

Outlook and guidance

• FY26 consolidated revenue guidance: INR 6,550–6,650 crores; standalone revenue: INR 5,700–5,800 crores; net profit: INR 300–310 crores.

• Product business expected to grow 17–21% to INR 4,140–4,280 crores; electronics segment to grow 29%.

• FY26 CAPEX revised to INR 700–750 crores, with some plans pushed to next year.

• Margin profile expected to remain under pressure due to inventory and pricing challenges.

• Focus remains on expense control, capital efficiency, R&D, and new product development.