Shares of PG Electroplast tumbled 10% today, extending losses to 31% over the past two days, following a significant downward revision in the company’s full-year revenue and net profit growth forecasts.
In its latest investor presentation, PG Electroplast slashed its consolidated sales guidance for FY26 to ₹5,700 crore–₹5,800 crore, signaling a growth of just 17% to 19% compared to the previous fiscal year. This is a steep downgrade from the March quarter guidance, which had forecasted sales of ₹6,345 crore, implying a robust 30.3% growth.
Additionally, the group’s total revenue projection was reduced to ₹6,550 crore–₹6,650 crore, down sharply from an earlier estimate of ₹7,200 crore.
Profit Outlook Severely Cut
PG Electroplast also lowered its net profit forecast significantly, now expecting profits between ₹300 crore and ₹310 crore for FY26. This translates to a modest growth of 3% to 7% year-on-year, down from the previous guidance of ₹405 crore — a drastic reduction that disappointed investors.
Q1FY26 Performance Highlights
The June quarter results underscored the challenges faced by PG Electroplast. Net profit for Q1FY26 declined by 21.5% to ₹66.7 crore, compared to ₹84.9 crore in the same period last year. On the revenue front, the company reported ₹1,503.8 crore, a 14% increase over ₹1,320.6 crore in Q1FY25.
However, EBITDA fell 7% to ₹121.3 crore from ₹130.3 crore, with the EBITDA margin contracting sharply to 8% from 9.9% in the previous year’s quarter.
The company also revised its product business growth outlook down to 17%–21% (₹4,140 crore–₹4,280 crore), compared to the earlier guidance of ₹4,770 crore.
Management’s Take in Q1FY26 Concall
During the recent earnings conference call, PG Electroplast’s management acknowledged that Q1FY26 was softer than expected, largely due to an earlier-than-anticipated monsoon. This sudden shift in market conditions caught the company unprepared, leading to the recalibration of guidance for the remainder of the year.
The management described FY26 as likely to be a more measured year, with a focus on consolidating their position amid the evolving environment. Despite the challenges, the company remains confident in its long-term growth prospects and emphasized that profitability remains a key priority.
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