PG Electroplast reported a consolidated revenue of ₹655 crore for Q2 FY’26, a 2% decline year-over-year. Despite a challenging quarter impacted by early monsoons and GST changes, the company’s washing machine business grew by 55%. PG Electroplast maintains its full-year revenue guidance of ₹5,700-₹5,800 crore and net profit between ₹300-₹310 crore. The company is focused on consolidating operations and executing capacity investments for future growth.
Financial Performance Overview
PG Electroplast announced its financial results for Q2 FY’26. Consolidated revenue reached ₹655 crore, representing a 2% decrease compared to the same quarter last year. Product revenues contributed approximately ₹319 crore, or 49% of total revenue. The AC business faced headwinds, contributing ₹131 crore with a decline of nearly 45% year-over-year. The washing machine segment performed strongly, with a growth of 55%, generating ₹188 crore in sales. PG Technoplast, a subsidiary, reported revenues of ₹295 crore during the quarter.
Profitability and Key Metrics
EBITDA for the quarter stood at ₹45 crore, while net profit reached ₹2.4 crore. A ₹8.4 crore FOREX loss impacted net profit compared to a ₹1.2 crore gain in the same quarter last year. The company remains in a strong financial position, with ₹630 crore in cash and equivalents at the end of Q2. Return on capital employed stands at 20.8%, and the fixed asset turnover is over 5x on a trailing 12-month basis.
Strategic Initiatives and Outlook
PG Electroplast is maintaining its full-year guidance for FY’26, projecting revenues in the range of ₹5,700-₹5,800 crore and a net profit between ₹300-₹310 crore. At the group level, including Goodworth Electronics, consolidated sales are expected to surpass ₹6,550-₹6,650 crore. The company is continuing investments in Greater Noida, Supa, Rajasthan, and South India, with FY’26 CAPEX between ₹700-₹750 crore.
Business Segment Updates
The company’s room AC business was affected by early monsoons and GST cut announcements. Despite this, the RAC business grew by about 2.5% in the first half. The washing machine business experienced significant growth of 55% in Q2. Goodworth Electronics posted sales of ₹483 crores with ₹10.33 crores of EBITDA in the first half of FY’26.
POS Machine Agreement
PG Electroplast has entered an agreement with tax technologists for POS machines, with pilot production expected in Q3 FY’26. The company is hopeful that this will become a sizable business in coming months.
Capacity Expansion
The company anticipates increasing AC production capacity to 4.25 lakh units per month on the split side by December. Washing machine capacity is already expanded to approximately 2 lakh units per month.
Source: BSE
