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PG Electroplast reported decent results

ICICIdirect Research 07 Aug 2026 DISCLAIMER

News: PG Electroplast reported decent results given the macro environment wherein margin dip came as expected while underlying business growth was strong. Revenue came in better than expected at ₹2034 crore up 35.2% YoY and 18.5% QoQ led by strong growth across segments. RAC and washing machine witnessed strong growth of ~38.1% YoY and 67.2% YoY respectively while electronics segment grew by 65.3% YoY however coolers witnessed modest growth of 3.4% YoY. Gross margins declined by 143 bps YoY and 123 bps QoQ partially to elevated commodity prices and input cost. EBITDA came in at ₹148 crore with EBITDA margins of 7.3% which declined by 75 bps YoY however inched up sequentially by 37 bps. Management stated margins per RAC remained stable QoQ. PAT came in at ₹75.3 crore up 12.9% YoY and 15.8% QoQ led by strong revenue growth.

View: PGEL reported strong revenue growth, driven by an extended summer season and a favourable base, as the corresponding quarter last year was impacted by unseasonal rains. However, margins remained under pressure due to elevated input costs and a lag in passing on the higher costs to customers. We expect geopolitical uncertainties to ease gradually, enabling the company to pass on the increased cost to customers and recover margins over the coming quarters. Additionally, inventory levels has normalised as it declined from ₹1601 crore to ₹1278 crore QoQ. Net debt of ₹110 crore as on Q4 has turned to net cash of ₹74 crore as on Q1. Inventory and net cash level indicate company hss passed through last year's tough phase. Further, it is backward integrating into compressor as earlier announced which shall aid margin and strengthen business. Management commentary is awaited for further clarity on the demand outlook, pricing strategy, and margin recovery trajectory.

Impact: Positive

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