PG Electroplast's Q4 profit falls -55.34% as margin slips to 6.92%
Revenue fell -10.11% YoY, while costs declined only -5.89%; other income contributed 16.31% of pre-tax profit.
Filed 27 May 2026, 20:25 IST · after market close · PG Electroplast Ltd (PGEL)
Key takeaways
- Consolidated net profit fell -55.34% YoY to Rs 64.86 cr as operating margin narrowed 4.17 percentage points to 6.92%.
- Revenue declined -10.11% YoY while expenses fell only -5.89%, showing why profit dropped faster than sales.
- The stock rose 1.37% on the reaction day, a smaller move than its 3.92% median absolute reaction after the past eight results.
Price around the results
Q4 profit drop was driven by operating deleverage
PG Electroplast reported consolidated revenue of Rs 1,716.68 cr, down -10.11% YoY, while net profit fell -55.34% to Rs 64.86 cr. Expenses declined only -5.89%, so operating profit dropped -43.95% and the operating margin narrowed by 4.17 percentage points to 6.92%. Lower interest costs helped, but depreciation rose 26.84% YoY and did not offset the operating decline.
Sequential sales improved but margins weakened again
Revenue grew +21.57% QoQ, but expenses grew faster at +23.37%, reducing operating margin by 1.36 percentage points from Q3FY26. This leaves margin below Q4FY25's 11.09% and shows a volatile path after 8.06% in Q1FY26, 4.59% in Q2FY26 and 8.28% in Q3FY26. The tax rate fell 1.92 percentage points QoQ, supporting the +4.68% sequential increase in net profit.
Profit quality was diluted by other income and tax
Other income accounted for 16.31% of pre-tax profit, making reported earnings less dependent on operations than the net profit figure alone suggests. The tax rate rose 2.60 percentage points YoY to 21.36%, adding to the pressure on net profit even as interest expense fell -21.40%.
Bhiwadi AC capacity is now part of the production base
Management said NGM's Bhiwadi AC unit became operational during the year and contributed to fourth-quarter production. The company said it is ramping up capacity and capabilities across product verticals, with R&D, new products and backward integration among its focus areas. For FY2027, management said it expects product-business growth to be supported by a robust order book and identified growth capabilities, capital efficiency and working-capital optimisation as priorities.
The market reaction was modest versus the stock's history
The stock rose 1.37% on the reaction day, despite opening with a -2.04% gap, and traded +1.95% after five sessions. That initial move was below the 3.92% median absolute reaction seen across the past eight results, when the stock rose after five results and fell after three. The stock's 12-month reaction was +25.17%, but that longer move does not change the relatively muted immediate response.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,717 cr | ₹1,412 cr | +21.57% | -10.11% |
| Other income | ₹13 cr | ₹11 cr | +23.62% | -28.11% |
| Expenses | ₹1,598 cr | ₹1,295 cr | +23.37% | -5.89% |
| Operating profit | ₹119 cr | ₹117 cr | +1.60% | -43.95% |
| Operating margin (%) | 6.92% | 8.28% | — | — |
| Interest | ₹26 cr | ₹25 cr | +3.96% | -21.40% |
| Depreciation | ₹24 cr | ₹22 cr | +7.92% | +26.84% |
| Profit before tax | ₹82 cr | ₹81 cr | +2.13% | -53.86% |
| Tax | ₹18 cr | ₹19 cr | -6.28% | -47.47% |
| Net profit | ₹65 cr | ₹62 cr | +4.68% | -55.34% |
| EPS (₹) | ₹2.27 | ₹2.18 | +4.13% | -57.33% |
Operating margin of 6.92% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.37% | +2.87% |
| Next session | -1.19% | — |
| 5 sessions | +1.95% | +4.21% |
| 15 sessions | +17.74% | — |
| 30 sessions | +25.17% | — |
Volume on the results session was 4.59× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- NGM’s Bhiwadi AC unit became operational and contributed to production in the fourth quarter of FY2026.
Guidance & outlook
- The company expects strong product business growth in FY2027, supported by a robust product business order book.
- For FY27, the company prioritises building growth capabilities and improving capital efficiency.
Expansion
- The company follows an organic growth strategy by ramping up capacity and capabilities across product verticals.
- NGM’s Bhiwadi AC unit became operational during the year and contributed to fourth-quarter production.
New initiatives
- R&D, new product development and backward integration are focus areas across product businesses.
- The company is focusing on working capital optimisation in coming quarters.
What to watch
- Whether consolidated operating margin improves from 6.92% after the sequential decline of 1.36 percentage points.
- Whether other income remains close to 16.31% of pre-tax profit.
- Whether revenue reverses the -10.11% YoY decline as the Bhiwadi AC unit contributes to production.