PG Electroplast (533581) Q2 26/27 earnings summary

Executive summary

• H1 FY2027 consolidated revenue rose 37.4% YoY to ₹2,967.8344 crore; Q2 revenue increased 42.5% to ₹933.877 crore.

• Q2 EBITDA grew 54.8% YoY to ₹69.14 crore; H1 growth was led by product business, up 41.1%, and expansion projects remained on schedule.

• Management expects stronger H2 execution, supported by healthy order books, while prioritizing ramp-up and profitability of recent capacity investments.

Financial highlights

• Q2 EBITDA was ₹69.14 crore versus ₹44.68 crore, and net income was ₹13.67 crore versus ₹2.76 crore; EBITDA margin rose to 7.4% from 6.8%.

• H1 EBITDA increased 22.4% to ₹225.37 crore and net income rose 28.9% to ₹89.88 crore.

• Standalone H1 revenue rose to ₹956.2819 crore from ₹710.9113 crore, while net profit declined to ₹44.0677 crore from ₹70.5271 crore.

• Consolidated H1 operating cash flow was ₹175.6373 crore, versus cash used of ₹152.9261 crore in H1 FY26.

Outlook and guidance

• FY27 room AC volume growth target is ~20% (also indicated at 20%-25%), with deliveries of 2.1-2.2 million versus 1.7 million last year.

• FY27 washing machine growth is expected at 40%-50%, with sales approaching ₹1,000 crore; electronics sales target is ₹550 crore within a ₹500-600 crore range.

• H2 margins are expected to be slightly better than H1, supported by seasonality, operating leverage and stronger Q4 PLI recognition; management expects gradual improvement from efficiencies.

• FY27 PLI incentives are expected to exceed ₹70 crore; FY28 total incentives were indicated at ₹105-110 crore, including PLI and state incentives.

• Sri City refrigerator production is targeted for Q4 FY27; FY28 output target is 700,000 units against first-phase capacity of 1.2 million.