|
“The early arrival of the monsoon impacted seasonal sales for Room ACs, making Q1 a more subdued start to the year. However, underlying demand indicators remain robust, and we see significant long-term potential given the relatively low penetration levels in core categories like Room ACs and Washing Machines. We remain focused on product innovation, capitalefficient expansion, and deepening client partnerships. Our investments in new platform development and capacity enhancements across core product lines are progressing as planned. Capital efficiency remains a core operating principle and all capex decisions are guided by sustainable profitability metrics and long-term value creation. While near-term growth may moderate, our mediumand long-term outlook remains strong. We are committed to building a resilient, highperforming organization that delivers industryleading capital efficiency and growth.” — Vishal Gupta, Managing Director – Finance |
Quarter ended June 30th, 2025
· Revenues stood at INR 1,503.85 crores, up 13.9% YoY
· EBITDA stood at INR 139.42 crores vs. INR 134.54 crores in 1QFY25 – growth of 3.6%
· Net Profit for the quarter stood at INR 66.71 crores, vs. INR 84.93 crores in 1QFY25
Key Highlights
1QFY26 was a challenging quarter for PGEL’s summer product portfolio, as early monsoons moderated growth:
· Consolidated revenues crossed INR 1,500 crores, with the Product business contributing INR 1,159 crores. PGEL’s 100% subsidiary, PG Technoplast, reported revenues of INR 1,211 crores.
· New product launches during the quarter received encouraging customer response. The company is also investing in new platform development for Room ACs and Washing Machines, and plans to expand capacity across Room AC, Washing Machine, and Cooler segments during the year.
· The Product business contributed 77.1% of overall revenues, growing 16.7% YoY.
Within this, Room ACs grew 15.1% YoY, Washing Machines grew 36.1% YoY, and Coolers declined marginally by 3.9% YoY.
The Electronics business contributed 4.3% of total revenues. In 1QFY25, the TV business was transitioned to a 50% JV. Goodworth Electronics (JV) posted revenues of INR 147.53 crores in 1QFY26 vs. INR 75.47 crores in 1QFY25, with EBITDA of INR 4.27 crores vs. INR 0.69 crores YoY.
Capital efficiency remains strong:
· RoCE: 25.2%
· RoE: 13.6%
· Net Fixed Asset Turnover: 5.10x
The company plans to continue investing in capacity expansion for RACs and Washing Machines to support future growth.
Future Outlook
The management sees increased opportunities from both existing and new clients. With enhanced capacities and technological capabilities, PGEL is well-positioned in India’s consumer durables and plastics ecosystem.
In the coming years, the company aims to:
- Achieve industry-leading revenue growth
- Drive gradualmargin expansion through operational efficiencies and operational leverage
- Maintain best-in-class capital efficiency through improved cash flows and balance sheet optimization
Specific guidance for FY2026
- PGEL Consolidated Revenues expected at INR 5,700–5,800 crores, implying growth of 17% to 19% over FY25
- Net Profit Guidance:INR 300–310 crores, a growth of 3%–7% over FY25 net profit of INR 291 crores
- Goodworth Electronics Revenue Guidance:INR 850 crores, implyingTotal Group Revenues of INR 6,550–6,650 crores
o Product business (Washing Machines, Room ACs, Coolers) expected to grow 17%–21%, reachingINR 4,140–4,280 crores, up from INR 3,526 crores in FY25
FY26 Capex expected to be INR 700–750 crores, to fund new projects including:
• Facility for plastic components and coolers in Rajasthan
• Campus in Greater Noida for washing machines
• Refrigeratorcampus in South India
• Campus in West India with expanded AC capacity in Supa
|
Revenues (In ₹ Crores) |
FY25 |
FY26E |
% Change |
|
Products |
3526 |
4140-4280 |
17%-21% |
|
Electronics |
349 |
450 |
29% |
|
PGEL Total |
4870 |
5700-5800 |
17%-19% |
|
Goodworth Electronics* |
544 |
850 |
57% |
|
Total Group Revenues |
5414 |
6550-6650 |
21%-23% |