PG Electroplast Limited (PGEL) — Financial Results

Investor Takeaways

Overall Tone: Cautious

Key Financial Highlights

What Changed

PG Electroplast Limited reported a 10.1% year-on-year decline in revenue to ₹1,717 crores for Q4 FY26, accompanied by a 56% drop in net profit to ₹64.2 crores. EBITDA declined by 43% YoY, reflecting significant margin pressure. The company recorded ₹300 crores in losses related to LPG supply disruptions and ₹120 crores from truck shortages, contributing to a total revenue impact of ₹420 crores. Gross margin contracted by 250 basis points, driven by delayed price pass-through amid rising input costs and rupee depreciation to INR95.5. Despite a 10-12% price increase and partial hikes in April-May, cost pressures persisted. Management anticipates channel inventory normalization by mid-year and projects gross profit growth in FY27, contingent on top-line expansion and forex stability within INR95-97. Capacity expansion, including a new compressor plant, is underway without external approvals.

Peer Comparison

PGEL trades at a P/E ratio of 65.56, which is lower than Titan’s 77.59 but comparable to Asian Paints’ 64.95. The company’s ROE and ROCE are not available in the provided data. Market capitalization is significantly lower than the peers, reflecting its smaller scale relative to large-cap consumer durables.

Risks & Concerns

Quarterly Trend

The sequential revenue trend shows volatility, with Q1FY25 at ₹1,320.68 Cr, followed by a dip in Q2FY25 to ₹671.30 Cr, a partial recovery in Q3FY25 to ₹967.69 Cr, and further decline to ₹1,717 Cr in Q4FY26 (note: Q4FY26 figure appears to be a typo or mislabeling as it exceeds prior quarters; however, per provided data, it is presented as the current quarter). Net profit peaked in Q1FY25 at ₹83.7 Cr and declined steadily to ₹64.2 Cr in the latest quarter. OPM peaked in Q4FY24 at 10.82% and has trended downward, aligning with margin pressure.

Forward Guidance

Risks & Concerns

Quarterly Trend

The sequential revenue trend shows volatility, with Q1FY25 at ₹1,320.68 Cr, followed by a dip in Q2FY25 to ₹671.30 Cr, a partial recovery in Q3FY25 to ₹967.69 Cr, and further decline to ₹1,717 Cr in Q4FY26 (note: Q4FY26 figure appears to be a typo or mislabeling as it exceeds prior quarters; however, per provided data, it is presented as the current quarter). Net profit peaked in Q1FY25 at ₹83.7 Cr and declined steadily to ₹64.2 Cr in the latest quarter. OPM peaked in Q4FY24 at 10.82% and has trended downward, aligning with margin pressure.

Forward Guidance

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About PG Electroplast Limited (PGEL)

Consumer Durables · Consumer Durables · Listed on NSE

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