Given the outlook for the next couple of months, PG Electroplast has recalibrated and revised its guidance. Financial Year 2026 is expected to be a more measured year for the company.
In its investor presentation, PG Electroplast now expects consolidated sales of ₹5,700 crore to ₹5,800 crore, which implies a growth of 17% to 19% from financial year 2025. However, the company, in its March quarter earnings presentation had guided for revenue of ₹6,345 crore, which is a 30.3% growth from financial year 2025.
Total Group revenue guidance has also been cut as a result to be between ₹6,550 crore to ₹6,650 crore, from ₹7,200 crore earlier.
The company now expects its net profit for the full year to be between ₹300 crore to ₹310 crore, which implies a growth of 3% to 7% from last year. During the March quarter, the company had guided for net profit to be ₹405 crore.
PG Electroplast now expects its product business to grow between 17% to 21% to between ₹4,140 crore and ₹4,280 crore, in comparison to the earlier guidance of ₹4,770 crore.
PG Electroplast ‘s net profit fell by 21.5% to ₹66.7 crore, compared to ₹84.9 crore in the corresponding quarter of the previous year.
Revenue rose by 14% to ₹1,503.8 crore, as against ₹1,320.6 crore in the same period last year.
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) fell by 7% to ₹121.3 crore, compared to ₹130.3 crore a year ago.
EBITDA Margin stood at 8%, lower than 9.9% in the corresponding quarter of the previous year.
The management said that the first quarter was softer than expected.
Given the outlook for the next couple of months, PG Electroplast has recalibrated and revised its guidance. Financial Year 2026 is expected to be a more measured year for the company.
An early onset of the monsoon and lower-than-anticipated sell-out in the trade channel led to a cut in guidance. The company acknowledged that it was not prepared for such a sudden shift in market conditions.
Management said it will use this period to consolidate operations, while remaining confident about the company’s long-term growth potential. The strategic focus will continue to be on profitability.
Due to the abrupt end of the season, the company has been left with high inventory levels. This has resulted in an additional finance cost outflow of ₹20 crore, impacting cash flows.
As of the latest quarter, cash and cash equivalents stood at ₹915 crore.
The company has deferred its capital expenditure plan to the next financial year. For FY26, capex is now projected at ₹700-750 crore, compared to the earlier planned ₹800-900 crore.
PG Electroplast shares are now trading 10% lower at ₹663.20. The stock is down over 35% so far in 2025.
First Published: Aug 8, 2025 2:31 PM IST
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