PG Electroplast: H2 outlook stronger despite Q2 revenue dip

PG Electroplast reported consolidated revenue of INR 655 crores for Q2 FY26, a 2% decline year-over-year. EBITDA stood at INR 45 crores, with a net profit of INR 2.4 crores, impacted by lower operating leverage and an INR 8.4 crores FOREX loss. Despite the industry’s 25% decline in the room AC business, PG Electroplast's RAC business grew by 2.5% in H1, while its washing machine business surged 55% in Q2. The company's joint venture, Goodworth Electronics, achieved sales of INR 483 crores and an EBITDA of INR 10.33 crores in H1 FY26.

The company is maintaining its full-year FY26 revenue guidance of INR 5,700-INR 5,800 crores and a net profit of INR 300-INR 310 crores. Consolidated sales, including the joint venture, are projected to reach INR 6,550-INR 6,650 crores. CAPEX for FY26 is expected to be between INR 700-INR 750 crores, with significant investments in refrigerator production in Andhra Pradesh, washing machines in Greater Noida, and RAC in Supa and Bhiwadi.

PG Electroplast anticipates improved inventory normalization by November end and a stronger second half, bolstered by new energy rating changes, an expanding order book, and market share gains in washing machines. The company aims to reduce its dependence on the AC business by diversifying into non-AC segments, with washing machines targeted to contribute 15% of total revenue in the medium term.