Operating Leverage Inflection
Expected: OngoingHIGH confidence
What: Fixed asset turnover: Over 6x
“And typically, a lot of operating leverage also kicks in during this quarter. So we are hopeful that the trend will probably continue.”
PG Electroplast Ltd: Stock Analysis & Fundamentals
Updated this weekPG Electroplast Ltd (Consumer Electronics - EMS) — fundamental analysis, earnings data, and key metrics. PE: 54.7. ROE: 14.9%. This stock is not currently in the Nifty 500 momentum outperformers list.
PG Electroplast Ltd Key Facts
What's Happening
📊Debt increased 54% YoY — leverage rising
👔Promoter stake down 9.8% this quarter
🌐FII stake increased 0.8% this quarter
🏛️DII accumulation — stake up 9.0%
Earnings Acceleration Triggers
1. Operating Leverage Inflection
OngoingHIGH
2. New Product Or Brand Launch
Q4 FY27HIGH
3. Market Share Gains
9M FY26MEDIUM
Key Risks
1. Forex loss of INR 8
MEDIUM2. Sharp rise in copper and aluminum prices necessitating price hikes
MEDIUM3. Provision of INR 1
LOWSector-Specific Signals
RAC Business RevenueINR 932.5 Cr+80.5%
Washing Machine RevenueINR 194 Cr+45%
Total InventoryINR 1,280 Cr
Net Fixed Asset Turnover6x
Key Numbers
Current Price
₹530
Dividend Yield
0.05%
Market Cap
15.1K Cr
Valuation
N/AWhy Are PG Electroplast Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: Q4 FY27HIGH confidence
What: Refrigerator capacity: 1.2 million units
“So Vishalji, we are putting up a capacity of 1.2 million refrigerators in our Sricity factory. So that should be up and running by the fourth quarter of FY '27.”
Market Share Gains
Expected: 9M FY26MEDIUM confidence
What: RAC growth vs industry: 27% vs -15% industry
“With this quarterly performance, we have been able to grow our RAC business by 27% in 9 months of FY '26 despite the industry posting an almost 15% to 20% decline.”
AC Business Growth of 80.5% YoY
HIGH confidence
What: AC Business Growth of 80.5% YoY
“The AC business contributed INR932.5 crores, which was a growth of 80.5% over the same period last year.”
What Are the Key Risks for PG Electroplast Ltd?
Earnings deceleration risks from management commentary
Forex loss of INR 8
MEDIUMTrigger: INR depreciation impacting import costs and outstanding payables.
Impact: PAT impact: INR 8.2 crores
Management view: Not explicitly detailed, but noted as a swing factor in other expenses.
Monitor: fx
Sharp rise in copper and aluminum prices necessitating price hikes
MEDIUMTrigger: Global commodity price movement impacting the Bill of Materials (BOM).
Management view: Passing on price increases to brands with a short lag.
Monitor: commodity
Provision of INR 1
LOWTrigger: Regulatory compliance with upcoming labor law changes.
Impact: PAT impact: INR 1.35 crores
Management view: One-time provision made in employee expenses.
Monitor: labor
What Is PG Electroplast Ltd's Management Saying?
Key quotes from recent conference calls
“we expect PGEL to be having revenues in the range of Rs. 5,700-Rs. 5,800 crores and net profit is expected to be between Rs. 300-Rs. 310 crores. [Previous Full Year Revenue guidance]”
“So Vishalji, we are putting up a capacity of 1.2 million refrigerators in our Sricity factory. So that should be up and running by the fourth quarter of FY '27. [Initiative: Refrigerator Entry]”
“Now in this EBITDA, we had a forex loss of INR8.2 crores versus the same quarter last year, a loss of INR1.4 crores. [Risk (fx): MEDIUM]”
“But price increase is surely likely to come, there is no choice because the kind of movement, which we have seen in the commodities, especially copper and aluminum. [Risk (commodity): MEDIUM]”
What Did PG Electroplast Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 1,412 crores
YoY +46%QoQ +115.6%
Why: Growth was driven by a 80.5% increase in the AC business and a 45% increase in washing machine sales during the quarter.
Revenue saw a massive sequential jump as the AC business entered its peak manufacturing and channel-filling season.
EBITDA
INR 126 crores
Margin 8.9%
Why: Margins were impacted by a 120 basis point drop at the gross level due to pricing support for clients and a shift to SAP accounting.
EBITDA margins faced pressure from forex losses and strategic pricing compromises to gain market share in the RAC segment.
PAT
INR 60.3 crores
QoQ +2412.5%
Why: Profitability improved due to higher operating leverage in the peak quarter, despite a forex loss of INR 8.2 crores.
PAT recovered sharply from the low base of Q2 (INR 2.4 Cr) as seasonal volumes absorbed fixed costs.
Other Highlights
• AC business contributed INR 932.5 crores, representing 66% of total revenue.
• Washing machine business grew 45% YoY to INR 194 crores.
• Forex loss of INR 8.2 crores impacted the bottom line during the quarter.
What Sector Metrics Matter for PG Electroplast Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
RAC Business Revenue
INR 932.5 Cr
YoY +80.5%QoQ +611.8%
Why: Driven by peak seasonal manufacturing and channel filling for the summer season.
Washing Machine Revenue
INR 194 Cr
YoY +45%QoQ +3.2%
Why: Continued momentum in outsourcing and wallet share gains from existing clients.
Total Inventory
INR 1,280 Cr
Why: Primarily raw material inventory (INR 1,160 Cr) built up for peak Q4 production.
Net Fixed Asset Turnover
6x
QoQ +20%
Why: Improved asset utilization as new capacities ramped up during the peak quarter.
Monthly AC Capacity (Split)
4.25 Lakh units
YoY +21.4%QoQ +21.4%
Why: Expansion of lines in Supa and Bhiwadi to meet seasonal demand.
Annual Refrigerator Capacity
1.2 Million units
YoY New Category
Why: Strategic entry into a new product segment at the Sricity facility.
Cash and Equivalents
INR 483 Cr
QoQ -23.3%
Why: Utilization of cash for ongoing capex and working capital requirements.
Estimated Industry Inventory
5 Million units
QoQ +150%
Why: Slow secondary sales and channel filling leading to a pile-up in the system.
What Is PG Electroplast Ltd's Management Guidance?
Forward-looking targets from management for FY2026
Capex Plan
₹750 Cr
Revenue Outlook
INR 5,700-5,800 crores
Capex Plan
INR 700-750 crores
Refrigerator facility in Sricity, washing machine capacity in Greater Noida, and AC facilities in Supa/Bhiwadi.
Volume
AC volume growth
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Full Year Revenue: INR 5,700-5,800 crores → INR 5,700-5,800 crores
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: PG Electroplast Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were PG Electroplast Ltd's latest quarterly results?
PG Electroplast Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +55.0%
- Revenue Growth YoY: +45.9%
- Operating Margin: 8.0%
What is PG Electroplast Ltd's current PE ratio?
PG Electroplast Ltd's current PE ratio is 54.7x.
- Current PE: 54.7x
- Market Cap: 15.1K Cr
- Dividend Yield: 0.05%
What is PG Electroplast Ltd's price-to-book ratio?
PG Electroplast Ltd's price-to-book ratio is 5.2x.
- Price-to-Book (P/B): 5.2x
- Book Value per Share: ₹102
- Current Price: ₹530
Is PG Electroplast Ltd a fundamentally strong company?
PG Electroplast Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 19.0%
Is PG Electroplast Ltd debt free?
PG Electroplast Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹590 Cr
What is PG Electroplast Ltd's return on equity (ROE) and ROCE?
PG Electroplast Ltd's return ratios over recent years
- FY2023: ROCE 17.0%
- FY2024: ROCE 19.0%
- FY2025: ROCE 19.0%
Is PG Electroplast Ltd's cash flow positive?
PG Electroplast Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-77 Cr
- Free Cash Flow (FCF): ₹-1,000 Cr
- CFO/PAT Ratio: -27% (weak cash conversion)
What is PG Electroplast Ltd's dividend yield?
PG Electroplast Ltd's current dividend yield is 0.05%.
- Dividend Yield: 0.05%
- Current Price: ₹530
Who holds PG Electroplast Ltd shares — promoters, FII, DII?
PG Electroplast Ltd's shareholding pattern (Mar 2026)
- Promoters: 43.4%
- FII (Foreign): 9.8%
- DII (Domestic): 24.5%
- Public: 22.4%
Is promoter holding increasing or decreasing in PG Electroplast Ltd?
PG Electroplast Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 43.4% (Mar 2026)
- Previous Quarter: 43.4% (Dec 2025)
- Change: 0.00% (stable)
Is PG Electroplast Ltd a new momentum entry or an established outperformer?
PG Electroplast Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for PG Electroplast Ltd?
PG Electroplast Ltd has 4 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — High utilization during peak quarters significantly improves profitability through fixed cost absorption.
- New Product Or Brand Launch — Entry into the refrigerator segment provides a new growth engine and reduces dependence on AC seasonality.
- Market Share Gains — Gaining wallet share from existing clients and benefiting from the shift from in-sourcing to outsourcing.
- AC Business Growth of 80.5% YoY — Driven by channel filling ahead of the summer season and market share gains from competitors.
What are the key risks in PG Electroplast Ltd?
PG Electroplast Ltd has 3 key risks worth monitoring
- [MEDIUM] Forex loss of INR 8 — INR depreciation impacting import costs and outstanding payables.
- [MEDIUM] Sharp rise in copper and aluminum prices necessitating price hikes — Global commodity price movement impacting the Bill of Materials (BOM).
- [LOW] Provision of INR 1 — Regulatory compliance with upcoming labor law changes.
What did PG Electroplast Ltd's management say in the latest earnings call?
In Q3 FY26, PG Electroplast Ltd's management highlighted
- "we expect PGEL to be having revenues in the range of Rs. 5,700-Rs. 5,800 crores and net profit is expected to be between Rs. 300-Rs. 310 crores. [Pre..."
- "So Vishalji, we are putting up a capacity of 1.2 million refrigerators in our Sricity factory. So that should be up and running by the fourth quarter ..."
- "Now in this EBITDA, we had a forex loss of INR8.2 crores versus the same quarter last year, a loss of INR1.4 crores. [Risk (fx): MEDIUM]"
What is PG Electroplast Ltd's management guidance for growth?
PG Electroplast Ltd's management has provided the following forward guidance for FY2026
- Revenue outlook: INR 5,700-5,800 crores
- Margin outlook: Not Given
- Capex plan: ₹750 Cr for Refrigerator facility in Sricity, washing machine capacity in Greater Noida, and AC facilities in Supa/Bhiwadi.
- Management tone: bullish
- Milestone: [REAFFIRMED] Full Year Revenue: INR 5,700-5,800 crores → INR 5,700-5,800 crores
What sector-specific metrics matter most for PG Electroplast Ltd?
PG Electroplast Ltd's most important sub-sector-specific KPIs from the latest concall
- RAC Business Revenue: INR 932.5 Cr (YoY +80.5%) (QoQ +611.8%) — Driven by peak seasonal manufacturing and channel filling for the summer season.
- Washing Machine Revenue: INR 194 Cr (YoY +45%) (QoQ +3.2%) — Continued momentum in outsourcing and wallet share gains from existing clients.
- Total Inventory: INR 1,280 Cr — Primarily raw material inventory (INR 1,160 Cr) built up for peak Q4 production.
- Net Fixed Asset Turnover: 6x (QoQ +20%) — Improved asset utilization as new capacities ramped up during the peak quarter.
- Monthly AC Capacity (Split): 4.25 Lakh units (YoY +21.4%) (QoQ +21.4%) — Expansion of lines in Supa and Bhiwadi to meet seasonal demand.
- Annual Refrigerator Capacity: 1.2 Million units (YoY New Category) — Strategic entry into a new product segment at the Sricity facility.
Is PG Electroplast Ltd worth studying for long term investment?
Based on quantitative research signals, here is why PG Electroplast Ltd may be worth studying
- Currently showing mixed signals — monitor for clearer trend confirmation
What is the investment thesis for PG Electroplast Ltd?
PG Electroplast Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Forex loss of INR 8
What is the future outlook for PG Electroplast Ltd?
PG Electroplast Ltd's forward outlook based on current data signals
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Forex loss of INR 8
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.