PG Electroplast stock tanks 20% in afternoon session, here’s why

Shares of PG Electroplast tanked 20% in the afternoon session on Friday after the consumer electronics firm pared its growth guidance for FY 26. PG Electroplast expects consolidated sales of Rs 5,700 crore to Rs 5,800 crore, which amounts to a growth of 17% to 19% from financial year 2025. 

However, during its March quarter earnings, the company guided for a revenue of Rs 6,345 crore, a 30.3% growth from financial year 2025. PG Electroplast stock tanked 20% to Rs 588.80 in the afternoon session today against the previous close of Rs 735.95 on BSE. Market cap of the firm fell to Rs 17,153 crore. 

Meanwhile, PG Electroplast’s net profit slipped 21.4% to Rs 66.71 crore in Q1 against Rs 84.93 cr on a year on year basis.  Revenue rose 13.9% to Rs 1503.85 crore in Q1 against Rs 1320.68 cr a year ago. EBITDA climbed 3.6% to Rs 139.42 crore in Q1 against Rs 134.54 Cr on a YoY basis. 

EBITDA margin came at 9.3% in the last quarter against 10.2% a year ago. 

The company said 1QFY26 was a challenging one for PGEL’s summer product portfolio, as early monsoons moderated growth.

Consolidated revenues crossed Rs 1,500 crore, with the Product business contributing Rs 1,159 crore. PGEL’s 100% subsidiary, PG Technoplast, clocked revenue of Rs 1,211 crore.

New product launches in Q1 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, rising 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 Rs 147.53 crores in 1QFY26 against Rs 75.47 crore in 1QFY25. EBITDA in Q1 came at Rs 4.27 crore against Rs 0.69 crore YoY. 

Future Outlook

The management expects 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. 

PG Electroplast is an Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products.