PG Electroplast (533581) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was softer than expected due to an early monsoon, which ended the room AC season early and led to high inventory, but consolidated revenues still grew 14% year-over-year to INR 1,504 crores.

• Product business contributed 77% of total revenues, with room AC business up 15% and washing machines up 36% year-over-year; PG Technoplast 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, with net profit at INR 66.7 crores, down from INR 84.9 crores in Q1 FY25.

• Cash and equivalents stood at INR 911 crores at quarter-end, with higher inventory levels impacting operating cash flows.

• The company remains confident in the long-term opportunity in India's consumer durable market and is focused on scaling profitability and capital efficiency.

Financial highlights

• Consolidated Q1 FY26 revenue was INR 1,504 crores (Rs. 150,385.04 lakhs), up 14% year-over-year; product business contributed INR 1,159 crores (77% of total).

• AC business revenue was INR 1,015 crores (68% of total), up nearly 15% year-over-year; washing machines up 36%.

• EBITDA for Q1 was INR 139 crores, up 3.5% year-over-year; net profit was INR 66.7 crores, down from INR 84.9 crores in Q1 FY25.

• Gross contribution margin was 17.6% in Q1 FY26; PAT margin at 4.4%.

• Cash and equivalents at INR 911 crores; return on capital at 25.2% (TTM); fixed asset turnover 5X.

Outlook and guidance

• FY26 consolidated sales guidance is INR 5,700–5,800 crores, a 17–19% increase over FY25; net profit guidance for FY26 is INR 300–310 crores.

• Group-level consolidated revenue guidance (including JV): INR 6,550–6,650 crores.

• FY26 CAPEX revised to INR 700–750 crores, with new projects in refrigerators, washing machines, AC capacity, and plastic components.

• Management expects softness to persist until November, with a strong pickup anticipated thereafter.

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