PG Electroplast Q2 Results: PG Electroplast Ltd, a contract manufacturing company of electronic goods, has presented weak results in the September quarter (Q2 FY26). The company’s net profit fell 86% to ₹3 crore, compared to ₹19.3 crore in the same period last year. This figure was much lower than CNBC-TV18’s estimate of ₹6.5 crore.
Decline in revenue and profits
PG Electroplast’s revenue declined 2.3% to ₹655.3 crore from ₹671 crore last year. This was slightly better than CNBC-TV18’s estimate of ₹625 crore. The company’s EBITDA declined by 46% to ₹30.3 crore. It was ₹56 crore last year. EBITDA margin declined to 4.6%, from 8.3% last year. This was below the expected 7.4%.
Mixed performance in the first half
PG Electroplast’s total net sales in the first half of the financial year 2026 (H1 FY26) stood at ₹2,159.22 crore. This is 8.4% more on annual basis. However, EBITDA came in at ₹184.10 crore, down from ₹195.08 crore last year. Net profit declined to ₹69.09 crore, compared to ₹104.40 crore last year.
Impact on summer product portfolio
PG Electroplast said that the first half of this time was challenging for the summer product segment. The sales of Room ACs were affected due to early monsoon and GST rate cut. However, the company’s total consolidated revenue crossed ₹2,150 crore. Out of this, Product Business was worth ₹1,478 crore. The company’s subsidiary PG Technoplast reported revenue of ₹1,507 crore.
Segment-wise performance
The contribution of product business to the company’s total income was 68.4%, which is 9.2% higher on annual basis. During this period, sales of Room ACs increased by 2.5%, there was a huge increase of 46.9% in washing machines, while sales of coolers decreased by 19.7%.
The company’s electronic business accounted for 8.8% of the total revenue. At the same time, the revenue of Goodworth Electronics (JV) increased from ₹285.9 crore to ₹483.4 crore and its EBITDA increased from ₹3.3 crore to ₹10.33 crore.
Capital efficiency remained strong
Capital efficiency of PG Electroplast remains good. Its RoCE stood at 20.8%, RoE at 12.6% and Net Fixed Assets Turnover at 5.04x. PG Electroplast said it will invest in increasing room AC and washing machine capacity in the coming months to support future growth.
Double digit growth expected in FY26
Issuing guidance for FY26, PG Electroplast said consolidated revenues could reach ₹5,700-5,800 crore, showing a growth of 17%-19% over FY25. Net profit is estimated to be ₹300–310 crore. This will be 3%-7% more than last year’s ₹291 crore.
At the same time, the revenue of Goodworth Electronics is expected to reach ₹ 850 crore, due to which the total group revenue can be between ₹ 6,550-6,650 crore. The company’s Product Business (AC, Washing Machine and Cooler) is expected to grow by 17%-21% in FY26.
Investment of ₹700-750 crore on new projects
PG Electroplast plans capex of ₹700–750 crore for FY26. This includes Plastic Components and Cooler Unit in Rajasthan, Washing Machine Campus in Greater Noida, Refrigerator Factory in South India and AC Unit Expansion in West India (Supa).
Status of shares of PG Electroplast
Shares of PG Electroplast Ltd closed 5.9% higher at ₹559.60 on Thursday (November 13). The company’s shares have been declining for some time. It has fallen 33.82% in the last 6 months. At the same time, it has given a negative return of 10.97% in 1 year. This year i.e. in 2025 the stock has fallen by 45.25%. The market cap of PG Electroplast is Rs 15.77 thousand crore.
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