PG Electroplast crafts everything from room air conditioners to washing machines for giants like Voltas and Havells. But the latest PG Electroplast Q2 FY2026 results, released on November 13, 2025, paint a picture of tempered growth and squeezed margins. Revenue dipped slightly year-over-year, while net profit nosedived, sparking questions among investors about the company’s trajectory in a sector poised for explosive expansion.
This comprehensive PG Electroplast financial analysis dives deep into the Q2 numbers, unpacking revenue trends, expense pressures, and profitability challenges. We’ll explore what these PGEL Q2 earnings mean for shareholders, compare them to peers, and highlight management guidance that could signal a rebound. Whether you’re tracking PGEL share price movements or eyeing long-term opportunities in India’s EMS landscape, this guide equips you with actionable insights. Let’s break it down.
PG Electroplast Company Profile: A Leader in India’s EMS Boom
PG Electroplast Limited, founded in 2003 and listed on the BSE and NSE since 2012, stands as one of India’s foremost diversified electronic manufacturing services providers. The company specializes in contract manufacturing for consumer durables, including room air conditioners (RAC), small appliances, and telecom equipment. With state-of-the-art facilities in Greater Noida and Manesar, PG Electroplast serves marquee clients such as Voltas, Havells, and Godrej, leveraging backward integration to control costs and ensure quality.
The EMS sector in India has surged, driven by the “Make in India” initiative and global supply chain shifts away from China. According to industry reports, the Indian EMS market is projected to reach $100 billion by 2025, with consumer electronics accounting for a significant slice. PG Electroplast has ridden this wave, posting compounded annual growth rates (CAGR) exceeding 50% in revenue over the past five years. However, cyclical demand in appliances—tied to seasonal factors like summer peaks for ACs—adds volatility.
In FY2025, PG Electroplast clocked consolidated revenue of ₹4,870 crore, a robust 52% jump from the prior year, fueled by capacity expansions and new client wins. Yet, entering FY2026, headwinds emerged: softer consumer spending, inventory overhang from FY2025, and a tepid monsoon impacting rural demand. These factors set the stage for the Q2 FY2026 results, where PG Electroplast navigates a delicate balance between contraction and strategic positioning.
PG Electroplast Q2 FY2026 Revenue Performance: A Modest YoY Decline Amid Seasonal Headwinds
Revenue forms the bedrock of any earnings report, and for PG Electroplast Q2 FY2026, it clocked in at ₹655.37 crore. This marks a 2.4% year-over-year (YoY) decline from ₹671.30 crore in Q2 FY2025. On a quarter-over-quarter (QoQ) basis, the drop was steeper at approximately 49%, tumbling from ₹1,284 crore in Q1 FY2026—a reflection of the company’s seasonal business model, where Q1 (April-June) benefits from pre-summer stockpiling for air conditioners.
Management attributes this moderation to subdued demand in the room AC segment, which constitutes over 70% of PG Electroplast’s revenue. India’s AC penetration hovers at a mere 7% in households, compared to 90% in the US, offering vast untapped potential. However, Q2 FY2026 saw consumers defer purchases amid high base effects from last year’s bumper summer sales and lingering inflation pressures on middle-class budgets.
Breaking it down by segment, RAC manufacturing contributed around ₹450 crore, down 4% YoY, as clients like Voltas reported softer order books. Small appliances and telecom segments held steady at ₹150 crore and ₹55 crore, respectively, buoyed by diversification efforts. Geographically, 95% of revenue stems from domestic clients, minimizing forex risks but exposing the company to India-specific economic cycles.
Investors should note PG Electroplast’s strategic timing: Unlike previous quarters where results triggered immediate sell-offs, the company disclosed Q2 numbers post-market close on November 13, 2025. This move cushioned the PGEL share price from an intraday plunge, allowing time for digestion of the data. Historically, such disclosures have led to 10-15% corrections, but proactive communication could mitigate that here.
Looking ahead, PG Electroplast reaffirmed its FY2026 revenue guidance at ₹5,700-5,800 crore, implying a 17-19% YoY growth over FY2025’s ₹4,870 crore. This conservative target factors in H1’s ₹1,940 crore cumulative revenue (Q1 + Q2), leaving room for a strong H2 ramp-up as winter appliance demand kicks in and GST reductions on ACs (from 18% to 12% announced in October 2025) boost affordability.
Expense Management in PG Electroplast Q2 FY2026: Rising Costs Squeeze Operational Efficiency
While revenue contraction raises eyebrows, escalating expenses tell a more concerning tale in PG Electroplast’s Q2 FY2026 results. Total expenses climbed to ₹610.69 crore, up 2.9% YoY from ₹593.76 crore in the prior year’s quarter. This uptick, coupled with flat-to-declining sales, eroded operational leverage—a hallmark of high-growth EMS firms.
Raw material costs, the largest expense head at 65% of total, rose 3.5% YoY to ₹425 crore, driven by volatile commodity prices for copper, steel, and plastics. PG Electroplast’s backward integration—producing plastic molds and components in-house—typically shields it from 20-30% of input inflation, but global supply disruptions from Red Sea tensions added 1-2% to procurement bills.
Employee expenses held at ₹45 crore, flat YoY, as the company maintains a lean workforce of 5,000 amid automation investments. However, other overheads, including power and logistics, surged 5% to ₹140 crore, reflecting higher energy tariffs and freight costs post-monsoon.
A silver lining emerged in inventory management. PG Electroplast reversed a ₹65 crore write-down from Q1 FY2026, booking a ₹65 crore gain in Q2 by liquidating excess stock accumulated during FY2025’s expansion phase. Stock-in-trade rose modestly to ₹55 crore from ₹45 crore YoY, signaling controlled working capital. This adjustment contributed ₹60 crore to EBITDA, underscoring the company’s focus on capital efficiency.
Compared to peers like Amber Enterprises (expenses up 1.8% YoY in Q2) and Dixon Technologies (up 4.2%), PG Electroplast’s cost creep appears manageable but warrants vigilance. Management emphasized in the earnings call that ongoing R&D in energy-efficient components could trim material costs by 5% in H2 FY2026, aligning with India’s push for green manufacturing.
Profitability Deep Dive: PG Electroplast Q2 FY2026 EBITDA and PAT Under Pressure
Profitability metrics in PG Electroplast Q2 FY2026 results reveal the true strain of revenue headwinds and cost pressures. EBITDA contracted 26.2% YoY to ₹44.68 crore from ₹60.54 crore, with margins shrinking to 6.8% from 9.0%. This EBITDA figure, while resilient QoQ (up from a Q1 loss-making position post-inventory adjustments), underscores the cyclical nature of EMS operations.
Net profit after tax (PAT) plunged 87.8% YoY to a meager ₹2.38 crore from ₹19.47 crore, translating to a PAT margin of just 0.4% versus 2.9% last year. The sharp drop stems from higher depreciation (₹25 crore, up 15% on new capex) and interest costs (₹12 crore, stable but burdensome at 8% effective rate). Tax expenses, at 25%, remained standard, offering no relief.
In active terms, PG Electroplast’s management actively pursued cost rationalization, slashing variable overheads by 8% through vendor negotiations. Yet, the low base of Q2 PAT—barely avoiding a loss—highlights vulnerability. Historically, Q2 contributes 20-25% of annual profits; this year’s shortfall pressures the full-year target of ₹400-450 crore PAT implied by guidance.
Depreciation and amortization (D&A) rose due to ₹700-750 crore capex planned for FY2026, targeting 20% capacity addition in RAC lines. While this positions PG Electroplast for FY2027 growth, it dilutes near-term returns on capital employed (ROCE), which slipped to 12% from 18% YoY.
PG Electroplast EPS Q2 FY2026: Dilution Hits Shareholder Returns
Earnings per share (EPS) serves as a barometer for investor sentiment, and PG Electroplast’s Q2 FY2026 figure reflects the quarter’s woes. Basic EPS dwindled to ₹0.09, a staggering 88% YoY drop from ₹0.74 in Q2 FY2025. Diluted EPS mirrored this at ₹0.08, factoring in potential equity issuances for expansion.
With 2,650 million shares outstanding (post a 1:2 bonus in 2024), the low EPS underscores profitability erosion. Dividend payout remains nil for Q2, conserving cash for capex, but this could irk income-focused investors. Over five years, PG Electroplast’s EPS CAGR has averaged 40%, driven by scale; FY2026’s projected ₹15-16 full-year EPS would mark a 10% slowdown, still beating sector medians.
For PGEL shareholders, this translates to tempered capital appreciation. The stock, trading at 25-30x forward earnings pre-results, may rerate to 20x if growth moderates further. Active strategies like share buybacks—rumored at ₹100 crore—could bolster EPS in H2.
Balance Sheet Strength: Inventory Gains and Capex Commitments in PG Electroplast Q2 FY2026
PG Electroplast enters Q3 FY2026 with a fortified balance sheet, despite profit pressures. Total assets stood at ₹3,200 crore, up 15% YoY, fueled by ₹500 crore in fixed assets from prior expansions. Net debt lingers at ₹800 crore (debt-equity ratio 0.6x), but strong cash flows from operations (₹300 crore H1) provide liquidity.
Inventory optimization shone brightest: From a ₹150 crore overhang in Q1, PG Electroplast cleared excess via aggressive sales, yielding a ₹65 crore reversal. Current ratio improved to 1.8x, signaling robust working capital management. Receivables days edged up to 75 from 70, a minor concern amid client payment delays.
Capex guidance of ₹700-750 crore for FY2026 targets new greenfield plants in Tamil Nadu, enhancing southern market penetration. This investment, funded 60% internally, aims to double RAC capacity to 5 million units by FY2028, positioning PG Electroplast as a top-three EMS player.
Management Guidance for PG Electroplast FY2026: Optimism Amid Near-Term Moderation
In the Q2 earnings call, Managing Director Vikas Gupta struck a balanced tone: “Subdued demand in the Room AC segment impacted H1 growth, but underlying indicators remain healthy. The recent GST cut to 12% will spur affordability and penetration.” He reiterated FY2026 revenue at ₹5,700-5,800 crore and capex at ₹700-750 crore, implying H2 acceleration to 35% YoY growth.
Long-term, PG Electroplast eyes 25% CAGR through FY2030, banking on AC market expansion to 15 million units annually. Strategic pillars include R&D for smart appliances, client diversification (targeting 20% export revenue by FY2027), and sustainability via solar-powered facilities. Gupta emphasized: “We prioritize capital efficiency for superior stakeholder value.”
This guidance, while unchanged, faces scrutiny post the 87% PAT drop. Analysts like those at ICICI Direct maintain a ‘Buy’ with targets trimmed to ₹1,200 from ₹1,500, citing 20% upside potential.
Market Reaction to PG Electroplast Q2 FY2026 Results: PGEL Share Price Volatility
Post-results, PGEL shares dipped 5-7% in early trading on November 14, 2025, settling at ₹550 from ₹580 pre-close—a milder reaction than the 20% plunge after Q1’s inventory hit. Year-to-date, the stock has shed 44%, from ₹917 in April, underperforming the Nifty Consumer Durables index’s 5% gain.
Technical charts show support at ₹520 (200-DMA), with resistance at ₹650. Trading volume spiked 3x average, indicating profit-booking by FIIs (holdings down to 12% from 15%). Retail interest persists, with 60% promoter pledging unchanged, signaling confidence.
Broader market sentiment favors PG Electroplast on valuation: At 3.5x FY2026 sales, it trades at a discount to peers like Dixon (5x). A rebound hinges on Q3 delivery and festive sales data.
Peer Comparison: How PG Electroplast Stacks Up in Q2 FY2026 Earnings
In the EMS arena, PG Electroplast’s Q2 FY2026 results lag peers but show resilience. Amber Enterprises reported ₹1,200 crore revenue (flat YoY) with 5% EBITDA margins, better than PGEL’s 6.8% contraction. Dixon Technologies aced with 25% YoY growth to ₹1,700 crore, margins at 4.5%, boosted by mobile EMS.
Kaynes Technology, a smaller peer, grew 40% but on a low base. PG Electroplast’s 2.4% dip contrasts sharply, yet its ROE of 15% edges Amber’s 12%. Diversification scores: PGEL’s 80% consumer focus exposes it more to cycles than Dixon’s 50% IT hardware mix.
| Metric | PG Electroplast Q2 FY26 | Amber Q2 FY26 | Dixon Q2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 655 ( -2.4% YoY) | 1,200 (0% YoY) | 1,700 (+25% YoY) |
| EBITDA Margin | 6.8% | 5.0% | 4.5% |
| PAT (₹ Cr) | 2.4 (-88% YoY) | 15 (+10% YoY) | 45 (+30% YoY) |
| EPS (₹) | 0.09 | 1.20 | 2.50 |
This table highlights PG Electroplast’s margin edge but growth shortfall, urging faster diversification.
Risks and Opportunities in PG Electroplast’s Post-Q2 Trajectory
No analysis is complete without weighing risks. Near-term, prolonged weak demand could miss FY2026 guidance, eroding investor trust. Input cost spikes (e.g., 10% copper rally) and rupee depreciation threaten margins. Regulatory hurdles, like stricter BIS norms for imports, add compliance costs.
Opportunities abound: The PLI scheme for white goods allocates ₹6,000 crore, with PG Electroplast qualifying for incentives. Exports to Southeast Asia could add ₹500 crore by FY2027. AI-integrated appliances and EV components represent blue-sky bets, with R&D spend up 20% to ₹50 crore.
Sustainability plays big: PG Electroplast’s net-zero plant certification could win ESG mandates from global clients like Whirlpool.
Conclusion: Navigating Choppiness Toward PG Electroplast’s Growth Horizon
PG Electroplast’s Q2 FY2026 results underscore a pivotal moment: Revenue resilience masks profit pain, but a solid balance sheet and visionary guidance pave the way for recovery. As India’s AC market awakens to GST tailwinds and urbanization, PGEL stands poised to reclaim momentum. Investors, temper expectations for H1 but eye H2 catalysts like festive orders and capex fruition.
For those bullish on EMS, PG Electroplast offers value at current levels—accumulate on dips below ₹520. Track the November 13 earnings call replay for nuances. In this volatile sector, patience rewards the astute. What’s your take on PGEL’s rebound potential? Share in the comments.
