PG Electroplast (533581) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue declined 2.4% year-over-year to INR 655 crore, mainly due to a sharp drop in Room AC demand, while H1 FY26 sales grew 8.4% year-over-year to INR 2,159 crore.

• Washing machine business grew 55% in Q2, with capacity expansion underway in RACs, washing machines, and coolers.

• Operating margins softened due to negative leverage in Room AC and higher supply costs.

• Cash and equivalents at quarter-end were INR 630 crore; higher inventory levels affected operating cash flows.

• Strategic focus remains on expense control, R&D, new product development, backward integration, and capacity expansion.

Financial highlights

• Q2 consolidated revenue was INR 655 crore, down 2.4% year-over-year; product revenues were INR 319 crore (49% of total).

• AC business revenue was INR 131 crore, down nearly 45% year-over-year, accounting for 20% of total revenue.

• Washing machines contributed INR 188 crore, up 55% year-over-year.

• EBITDA for Q2 was INR 44.68 crore, down 26.2% YoY; net profit was INR 2.4 crore, impacted by lower operating leverage and INR 8.4 crore forex loss.

• Cash and equivalents at Q2 end were INR 630 crore; company remains net cash positive.

Outlook and guidance

• FY26 revenue guidance maintained at INR 5,700–5,800 crore, with net profit expected between INR 300–310 crore.

• Group-level consolidated sales (including JV) expected to cross INR 6,550–6,650 crore.

• FY26 CapEx planned at INR 700–750 crore, with investments in Greater Noida, Supa, Rajasthan, and South India.

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

• Second half expected to show improved operating and free cash flow as inventory normalizes and GST rationalization benefits working capital.