PG Electroplast Q2 sales dip on weak AC demand, but H1 shows growth

PG Electroplast Limited announced its unaudited financial results for the quarter and half-year ended September 30, 2025. The company reported a 2.4% year-over-year decline in Q2 FY2026 consolidated sales to INR 655.37 crores, while H1 FY2026 saw cumulative growth of 8.4% to INR 2159.22 crores. This was primarily influenced by softer room AC demand due to early monsoons and GST rate cut expectations, which impacted the AC business, declining 45% year-over-year in Q2 FY2026. However, the washing machines business showed robust growth of 55% during the same period.

The company's EBITDA decreased by 26.2% to INR 44.68 crores for the quarter and 5.6% to INR 184.10 crores for the half-year. Net profit for the quarter fell by 87.8% to INR 2.38 crores, and for the half-year by 33.8% to INR 69.09 crores. Despite these short-term pressures, PGEL remains confident in its long-term growth trajectory, driven by capacity expansion, product innovation, and strategic client partnerships. The company projects consolidated sales of INR 5700–5800 crores for FY2026, representing 17-19% growth over FY2025, and a net profit guidance of INR 300–310 crores.

In related announcements, PG Electroplast allotted 6,13,000 equity shares under its Employees Stock Option Scheme – 2020 on November 13, 2025. The company also confirmed its commitment to capacity expansion for RACs and washing machines, with planned capex of INR 700–750 crores for FY2026 for new projects including a refrigerator campus in South India and facilities for washing machines, plastic components, and coolers across various regions.