PG Electroplast grows revenue 35.25%, but costs still dilute margins
The sequential margin recovery was helped by expenses growing slightly slower than revenue, while commodity costs continued to weigh year on year.
Filed 06 Aug 2026, 21:25 IST · after market close · PG Electroplast Ltd (PGEL)
Key takeaways
- Revenue grew 35.25% year on year, but expenses rose faster at 36.39%, reducing operating margin by 0.77 percentage points.
- Net profit rose 13.80% year on year to Rs 76.22 cr, restrained by weaker operating leverage and higher depreciation.
- Operating margin improved 0.37 percentage points sequentially to 7.29%, but remained 5.38 percentage points below the 12.67% median for 105 reported Consumer Discretionary peers.
Price around the results
Revenue growth broadens beyond the core base
PG Electroplast reported consolidated revenue growth of 35.25% year on year and 18.48% sequentially. Management said the electronics business grew 65.3% year on year and contributed 5.3% of total revenue. The company also said its new washing-machine facility in DMIC, Greater Noida, came online during Q1FY27, with annual capacity of 1.8 million machines.
Commodity costs keep the margin below last year
Expenses grew 36.39% year on year against 35.25% revenue growth, narrowing operating margin by 0.77 percentage points. Management attributed the softer gross contribution percentage to elevated commodity prices and said raw-material cost increases had been only partly passed through to customers. Sequentially, expenses grew 18.01%, slightly slower than revenue at 18.48%, allowing operating margin to recover 0.37 percentage points.
Profit growth trails revenue, with a lower tax rate helping
Net profit increased 13.80% year on year, well below revenue growth, as operating profit rose 22.24% and depreciation increased 27.32%; interest rose 4.10%. The tax rate fell by 1.10 percentage points year on year and 1.31 percentage points sequentially, providing some support to reported profit. Other income represented 9.38% of pre-tax profit, so earnings were not entirely generated by operations.
Margin has recovered from Q2, but remains below peer levels
Operating margin has improved from 4.59% in Q2FY26 to 7.29% in Q1FY27, although it remains below 8.28% in Q3FY26 and 8.06% in the year-ago quarter. The current margin was 5.38 percentage points below the 12.67% median among 105 Consumer Discretionary peers that had reported, placing PG Electroplast 24th from the bottom. Management said FY27 expense control is intended to build resilience and improve capital efficiency.
Results filed after close; market response is still pending
The consolidated results were filed after market close, so there is no post-results share-price reaction yet. Across eight prior result reactions, the stock rose five times and fell three, with a median absolute move of 3.33%; the historical range included a 20.09% decline, making outcomes variable rather than consistently directional.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,034 cr | ₹1,717 cr | +18.48% | +35.25% |
| Other income | ₹9 cr | ₹13 cr | -33.53% | -51.54% |
| Expenses | ₹1,886 cr | ₹1,598 cr | +18.01% | +36.39% |
| Operating profit | ₹148 cr | ₹119 cr | +24.80% | +22.24% |
| Operating margin (%) | 7.29% | 6.92% | — | — |
| Interest | ₹35 cr | ₹26 cr | +35.68% | +4.10% |
| Depreciation | ₹27 cr | ₹24 cr | +11.80% | +27.32% |
| Profit before tax | ₹95 cr | ₹82 cr | +15.59% | +12.22% |
| Tax | ₹19 cr | ₹18 cr | +8.51% | +6.40% |
| Net profit | ₹76 cr | ₹65 cr | +17.51% | +13.80% |
| EPS (₹) | ₹2.67 | ₹2.27 | +17.62% | +12.66% |
Operating margin of 7.29% compares with a Consumer Discretionary sector median of 12.67% across 105 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported that its washing machine manufacturing facility in DMIC, Greater Noida, came online during 1QFY27.
- The electronics business grew 65.3% year over year and contributed 5.3% of total revenues in 1QFY27.
Expansion
- PGEL's new washing machine facility in DMIC, Greater Noida, has come online with annual capacity of 1.8 million machines.
- PGEL is pursuing organic growth by ramping up capacities and capabilities across product verticals.
New orders
- The order book remains healthy across all products at PG Technoplast.
New initiatives
- Strategic priorities include research and development, new product development, backward integration and capability enhancement.
- The company is focusing on expense control in FY27 to build resilience and improve capital efficiency.
Problems & risks
- Gross contribution percentage softened year over year because of elevated commodity prices.
- Rising input costs mechanically reduce margin percentage even when per-unit economics remain stable.
- Raw material cost increases have only been partially passed through to customers.
What to watch
- Whether operating margin improves from 7.29% as raw-material costs are passed through.
- Whether other income remains near 9.38% of pre-tax profit.
- Progress in utilisation of the new 1.8 million-machine annual washing-machine capacity.