PG Electroplast revenue jumps, but higher costs cut margin
Revenue growth accelerated sequentially, but commodity costs and a higher tax rate pulled standalone net profit down 33.14% YoY.
Filed 27 Oct 2026, 19:25 IST · after market close · PG Electroplast Ltd (PGEL)
Key takeaways
- Standalone revenue rose 39.52% YoY, but expenses grew 43.74%, cutting operating margin by 2.70 percentage points.
- Net profit fell 33.14% YoY to Rs 25.86 cr, while other income contributed 8.98% of pre-tax profit.
- Sequentially, operating margin recovered 1.18 percentage points as revenue growth of 21.73% exceeded expense growth of 20.19%.
Price around the results
Revenue growth did not convert into higher profit
PG Electroplast's standalone revenue increased 39.52% YoY, but operating profit rose only 3.53% because expenses grew faster than sales. Net profit declined 33.14% YoY to Rs 25.86 cr, with the comparison also affected by the sharp fall in other income. The tax rate increased 1.67 percentage points YoY.
Margin recovered sequentially but remains below last year
Sequentially, revenue grew 21.73% while expenses increased 20.19%, allowing operating margin to recover by 1.18 percentage points. YoY, however, higher commodity prices softened gross contribution, and management said rising input costs can reduce the margin percentage even when per-unit economics remain stable. Other income accounted for 8.98% of pre-tax profit, so reported earnings still included a meaningful non-operating contribution.
Operating margin improved from the Q1FY27 low
The 7.76% operating margin was up from 6.58% in Q1FY27, after declining from 10.46% in Q2FY26 to 7.57% in Q4FY26. It remains below the 12.35% median for the 63 Consumer Discretionary peers that have reported, placing PG Electroplast 4.59 percentage points below the sector median and 18th from the bottom.
Management highlighted capacity additions and electronics growth
Management said the Salarpur, Bhiwadi plastic-components and coolers facility is operational and will contribute from Q3FY27, while commercial production at two new facilities is expected to start in Q4FY27. The presentation said the new DMIC, Greater Noida washing-machine facility will have annual capacity of 1.8 million machines. Management also said electronics grew 90.3% YoY and contributed 12.1% of consolidated revenue in 1HFY27, when consolidated half-yearly revenue crossed Rs 2,950 cr.
Results were filed after market close
The standalone results were filed after market close on 27 October. Across the past eight result reactions, the stock rose five times and fell three times, with a median absolute move of 3.33%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹525 cr | ₹431 cr | +21.73% | +39.52% |
| Other income | ₹3 cr | ₹6 cr | -47.12% | -84.72% |
| Expenses | ₹484 cr | ₹403 cr | +20.19% | +43.74% |
| Operating profit | ₹41 cr | ₹28 cr | +43.54% | +3.53% |
| Operating margin (%) | 7.76% | 6.58% | — | — |
| Interest | ₹3 cr | ₹3 cr | +8.19% | +3.93% |
| Depreciation | ₹7 cr | ₹7 cr | +1.33% | +1.47% |
| Profit before tax | ₹34 cr | ₹24 cr | +38.18% | -31.67% |
| Tax | ₹8 cr | ₹6 cr | +26.77% | -26.40% |
| Net profit | ₹26 cr | ₹18 cr | +42.01% | -33.14% |
| EPS (₹) | ₹0.90 | ₹0.64 | +40.62% | -33.82% |
Operating margin of 7.76% compares with a Consumer Discretionary sector median of 12.35% across 63 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Consolidated half-yearly revenue crossed INR 2,950 crores for the first time in the company’s history in 1HFY27.
- The electronics business grew 90.3% year on year and contributed 12.1% of total revenues in 1HFY27.
Expansion
- The company expects commercial production to start from two new facilities in the fourth quarter of FY27.
- The new washing machine facility in DMIC, Greater Noida, will have annual capacity of 1.8 million machines.
- The new plastic component and coolers facility at Salarpur, Bhiwadi is operational and will contribute from the third quarter of FY27.
- The company is pursuing organic growth by ramping up capacities and capabilities across product verticals.
New initiatives
- The company’s strategic priorities include R&D, new product development, backward integration and capability enhancement.
- The company is focusing on expense control, long-term resilience and capital efficiency for FY27.
Problems & risks
- Gross contribution as a percentage softened year on year due to elevated commodity prices.
- Rising input costs mechanically lower the margin percentage even when per-unit economics remain stable.
What to watch
- Whether operating margin holds above 7.76% after the sequential 1.18 percentage-point recovery.
- Whether expense growth stays below the 21.73% sequential revenue growth rate.
- Whether the Salarpur facility contributes from Q3FY27, as management said.