PG Electroplast (533581) Q4 25/26 earnings summary

Executive summary

• FY26 revenue grew to INR 5,288 crore, up 8.6% YoY, despite a 15% decline in the RAC industry, adverse weather, GST changes, and BEE transitions, which led to demand shocks and inventory build-up.

• Severe supply-side disruptions included commodity inflation, rupee depreciation, LPG shortages, and labor/truck shortages, resulting in plant shutdowns and deferred sales.

• Strategic initiatives advanced: new refrigerator and compressor facilities, expanded washing machine capacity, operational consolidation, and launch of the Bhiwadi AC unit.

• Operating margins were under pressure due to cost inflation, higher commodity prices, and negative operating leverage.

• Audited standalone and consolidated financial results for FY26 were approved, with an unmodified audit opinion issued by statutory auditors.

Financial highlights

• Q4 FY26 consolidated revenue was INR 1,717 crore, down 10.4% YoY; EBITDA fell 43% to INR 131.54 crore; net profit dropped 56% to INR 64.2 crore.

• Full-year FY26 consolidated revenue was INR 5,288 crore, up 8.6% YoY; EBITDA at INR 441.76 crore (down from INR 519.16 crore); PAT at INR 193.61 crore (down from INR 290.92 crore).

• Forex loss for FY26 was INR 38.77 crore vs. a gain of INR 17.99 crore in FY25; Q4 Forex loss was INR 25.82 crore vs. a gain of INR 12.77 crore YoY.

• Estimated revenue loss in Q4 due to LPG and truck shortages was INR 420 crore; gross margin impact from commodity/currency was ~250 bps.

• Cumulative capital expenditure over 10 years exceeded INR 1,900 crore, with INR 785 crore in FY26.

Outlook and guidance

• FY27 expected to see better-than-industry revenue growth, EBITDA margin improvement toward 8%, and significant working capital normalization.

• Channel inventory has normalized; April and May 2027 show improved sell-out momentum.

• New refrigerator and compressor facilities to contribute meaningfully from FY28; washing machine business expected to grow 30–35% in FY27.

• Management anticipates margin improvement through operational efficiencies and higher leverage.

• PLI income of INR 71 crore for FY26 to be recognized in FY27.