PG Electroplast Q2 Results | Profit tanks 86% on weak AC, cooler sales; misses estimates

Contract manufacturer of electronic goods PG Electroplast Ltd on Thursday (November 13) reported a net profit of ₹3 crore for the quarter ended September 2025, down 86% from ₹19.3 crore in the same period last year. The results fell short of CNBC-TV18 estimates, which had projected a net profit of ₹6.5 crore.

Revenue for the quarter declined 2.3% year-on-year to ₹655.3 crore from ₹671 crore but was slightly above the CNBC-TV18 poll of ₹625 crore. EBITDA fell 46% to ₹30.3 crore from ₹56 crore in the year-ago quarter, while the operating margin contracted to 4.6% from 8.3% last year. The margin was also below CNBC-TV18's estimates of 7.4%.

For the half-year ended September 30, 2025, the company posted net sales of ₹2,159.22 crore, reflecting growth of 8.4% year-on-year. EBITDA for 1HFY26 stood at ₹184.10 crore versus ₹195.08 crore in 1HFY25, while net profit declined to ₹69.09 crore from ₹104.40 crore in the prior year.

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The first half of FY26 was challenging for PG Electroplast’s summer product portfolio, as early monsoons and the GST rate reduction affected sales growth in the Room AC business. Consolidated revenues crossed ₹2,150 crore, with the Product business contributing ₹1,478 crore. PG Electroplast’s wholly-owned subsidiary, PG Technoplast, reported revenues of ₹1,507 crore.

The Product business contributed 68.4% of overall revenues, growing 9.2% year-on-year. Within this segment, Room ACs grew 2.5%, washing machines surged 46.9%, while coolers declined 19.7% year-on-year. The Electronics business contributed 8.8% of total revenues in 1HFY26. Goodworth Electronics (JV) posted revenues of ₹483.4 crore, up from ₹285.9 crore in 1HFY25, with EBITDA rising to ₹10.33 crore from ₹3.30 crore year-on-year.

Capital efficiency remains strong with RoCE at 20.8%, RoE at 12.6%, and net fixed asset turnover of 5.04x. The company plans to continue investing in capacity expansion for Room ACs and washing machines to support future growth.

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Looking ahead, management expects increased opportunities from existing and new clients. PG Electroplast aims to achieve industry-leading revenue growth, drive gradual margin expansion through operational efficiencies, and maintain best-in-class capital efficiency with improved cash flows and balance sheet optimisation.

For FY26, consolidated revenues are expected at ₹5,700–5,800 crore, implying growth of 17%–19% over FY25. Net profit guidance is ₹300–310 crore, up 3%–7% over FY25’s ₹291 crore. Goodworth Electronics' revenue is projected at ₹850 crore, bringing total group revenues to ₹6,550–6,650 crore. The Product business, including washing machines, Room ACs, and coolers, is expected to grow 17%–21% to ₹4,140–4,280 crore from ₹3,526 crore in FY25.

FY26 capex is planned at ₹700–750 crore, funding new projects including a plastic components and cooler facility in Rajasthan, a washing machine campus in Greater Noida, a refrigerator campus in South India, and an expanded AC capacity campus in Supa, West India. Shares of PG Electroplast Ltd ended at ₹559.60, up by ₹31.20, or 5.90%, on the BSE.

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