PG Electroplast reports 10.1% decline in quarterly revenue amid challenging market conditions

Kinjal — Wed, 27 May 2026 15:04:28 +0000

PG Electroplast Ltd. (PGEL), a leader in electronic manufacturing services and original design manufacturing in India, has reported a 10.1% year-on-year decline in revenue for the quarter ended March 31, 2026. The company’s revenue stood at ₹1,716.68 crore, down from the previous year’s figures, reflecting the impact of several market challenges.

The company faced a difficult fiscal year, with the Room AC industry experiencing significant disruptions. The early monsoon affected peak-season demand, while the announcement of a GST cut in August delayed purchases until formal notification. Additionally, the transition to a new BEE rating led to inventory adjustments that impacted sales through January and February. These factors, coupled with LPG constraints and raw material inflation, put pressure on production and profitability.

Despite these challenges, PG Electroplast remained focused on execution, investing in product innovation, capacity enhancement, and new platform development. The company’s capital allocation strategy prioritised capital efficiency, sustainable profitability, and long-term value creation.

For the financial year ended March 31, 2026, PGEL reported a revenue increase of 8.6% year-on-year, reaching ₹5,288.02 crore. However, EBITDA declined by 14.9% to ₹441.76 crore, and net profit fell by 33.5% to ₹193.60 crore compared to the previous year.

The fourth quarter was particularly challenging, with weak Room AC demand and supply-side disruptions affecting operations. Excess inventory from December 2025 weakened pricing power, and the impact of commodity inflation and rupee depreciation could not be fully passed through, resulting in a gross margin impact of nearly 250 basis points. The Gulf conflict further disrupted March production, affecting Room AC production by nearly ₹300 crore.

Truck availability challenges in late March resulted in an estimated sales loss of ₹120 crore. Overall, these factors led to a revenue loss of approximately ₹420 crore and reduced PBT by nearly ₹60 crore during the quarter.

The electronics business contributed 6.8% of total quarterly revenue, with Goodworth Electronics, the company’s joint venture, reporting revenue of ₹155.1 crore in 4QFY26, up from ₹107.6 crore in 4QFY25. EBITDA improved to ₹6.19 crore from ₹0.94 crore in the corresponding quarter last year.

Looking ahead, PG Electroplast is investing in future growth and backward integration, developing a new refrigerator manufacturing plant in Sri City and a rotary compressor manufacturing facility at Supa, both expected to commence operations by 4QFY27. The management remains optimistic about increased opportunities from existing and new clients, aiming for industry-leading revenue growth and gradual margin expansion.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Goodworth Electronics | Business Upturn

PG Electroplast reports 10.1% decline in quarterly revenue amid challenging market conditions