PG Electroplast reported a 10% decline in topline to ₹1,717 crore for the March quarter, significantly missing analyst expectations of a 7% decline. According to reports from CNBC TV18 and Investing.com, the company highlighted that overall disruptions including the LPG crisis and truck shortage led to a revenue loss of ₹420 crore during the quarter. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 44% from last year to ₹119 crore, while margins narrowed to 6.9% from 11.1% in the year-ago quarter. However, the company's EPS of ₹4.9 exceeded forecasts by 16.67%, demonstrating strong earnings management despite revenue challenges.
For the full year, PG Electroplast reported revenue growth of 9%, which is well below the company's guidance of 17% to 19% growth that it had been maintaining over the last few quarters. As reported by CNBC TV18, net profit was lower by 32% for the full year, while the company had guided for it to grow between 3% to 7%. The company's Cash Conversion cycle has stretched to 66 days from 50 earlier, while inventory days have increased to 82 from 56 earlier, and cash on books has gone down to ₹389 crore from ₹979 crore earlier. Despite these challenges, the company maintained its Washing Machines business grew 52% last year and expects upwards of 30-35% growth in the current year.
Gross margins were down nearly 300 basis points to 15.7%, with weak pricing power, commodity inflation and weakness in the currency impacting margins by 250 basis points. According to CNBC TV18 and Investing.com, the management attributed the margin pressure to cost inflation, higher commodity prices and negative operating leverage. The Room AC (RAC) industry experienced a decline of approximately 15% during FY26 due to three demand-side shocks: early monsoon in Q1, GST rate cut impact in August-September, and BEE rating transition anticipation in December 2025. The company faced Forex losses of ₹38.77 crore for FY2026 versus a gain of ₹17.99 crore in FY2025, with ₹25.82 crore quarterly Forex loss compared to a gain of ₹12.77 crore last year. Since December 2025 till April 2026, the industry implemented cumulative price hikes of around 10%-15% to counter commodity price increases.
The management acknowledged that while near-term growth may moderate, the medium-to-long-term opportunity remains strong. As reported by Investing.com, the company's new refrigerator manufacturing plant in Sri City and the compressor manufacturing facility at Supa are both likely to commence operations by the fourth quarter of financial year 2027. The refrigerator plant is expected to achieve 50-55% capacity utilization in the first year of operation (FY28) with both Frost Free and Side-by-side refrigerators, while the compressor facility may see profitability in the first year itself. The company has good visibility and commitment from clients in the Washing Machines segment, expecting upwards of 30-35% growth this year, with specific numbers to be announced after the first quarter.
Shares of PG Electroplast ended Wednesday's trading session with gains of 1.95% at ₹466.95, though the stock has already declined 19% over the past six months and nearly 39% over the past year. According to Investing.com, the modest uptick reflects investor optimism about the EPS beat despite the revenue miss. The stock remains within its 52-week range of ₹436.55 to ₹836.45. The shares are expected to remain in focus following the quarterly results and company guidance miss due to the Iran war impact, with management acknowledging that FY26 guidance could be affected due to gas supply shortages.
