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Informist, Wednesday, Aug. 5, 2026

 

By Devanshu Singla

 

MUMBAI – Electronics manufacturer PG Electroplast Ltd. is expected to deliver a strong improvement in profitability for the June quarter, aided

by partial cost pass-through and a weak base from the year-ago quarter, according to brokerages tracking the company. Given the strong summer demand, the company's revenue is expected to be supported by both volume and value growth.

 

The company is expected to report a consolidated net profit of INR 899 million for the June quarter, according to the average of estimates from five brokerages. This will be up nearly 34% on year from INR 670 million and 39% on quarter. The company's consolidated net sales for the quarter are expected to be INR 19.40 billion, up 29% on year from INR 15.04 billion and up 13% on quarter, according to the average of five estimates.

 

The highest estimate for the company's net profit for the June quarter is INR 1.08 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest estimate INR 690 million from PhillipCapital (India) Pvt. Ltd. The highest estimate for the company's net sales is INR 20.51 billion from Anand Rathi and the lowest around INR 17.39 billion by Nuvama Wealth Management Ltd.

 

The room air conditioner sales are expected to grow 25% on year in the June quarter due to strong summer season demand and price hikes undertaken by

the company. Sales of washing machines are also expected to see healthy growth, Nuvama said.

 

"The RAC (room air conditioner) industry witnessed a weather-driven quarter, with an early and unusually intense heatwave resulting in exceptionally strong demand during April and May," Nirmal Bang Equities Pvt. Ltd. said. Industry volumes in the June quarter significantly outpaced last year's weak base, leading several players to report their strongest ever quarterly sales. However, demand moderated sharply once the monsoon arrived in mid-June, the brokerage said.

 

The room air conditioner manufacturers were building up capacities in the June quarter due to a strong summer season and channel stocking in the segment. This capacity building resulted in 20% volume growth for room air conditioners in the reporting quarter, with 8-10% price hikes resulting in 30% room air conditioner growth, PhillipCapital said.

 

In financial year 2025-26 (Apr-Mar), the company's products vertical, which includes room air conditioners, washing machines, and air coolers, constituted more than 76% of the total operating revenue of INR 52.83 billion.

 

During the June quarter, manufacturers implemented 8-10% price hikes to offset product upgrades required to meet the new Bureau of Energy Efficiency

standards, rising commodity costs, and depreciation of the rupee. Input cost inflation outpaced price hikes in several cases, resulting in near-term margin compression despite robust volume growth, Nirmal Bang said.

 

PG Electroplast's earnings before interest, tax, depreciation, and amortisation are estimated at INR 1.48 billion for the June quarter, up 6% on year and 13% on quarter, according to the average of estimates. The highest estimate for the company's EBITDA is INR 1.65 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 1.29 billion from PhillipCapital.

 

The margins for consumer durables companies will continue to remain under pressure as players have not been able to fully pass on the higher commodity prices and impact of the depreciation of the rupee against the US dollar, PhillipCapital said. The brokerage expects PG Electroplast's margin to remain flat sequentially and contract by 100 basis points on year.

 

PG Electroplast is an electronic manufacturing service provider, specialising in original design manufacturing, original equipment manufacturing, and plastic injection moulding. It caters to more than 50 Indian and global brands. PG Electroplast will announce its June quarter earnings Thursday. Wednesday, shares of the company ended almost 1.5% lower at INR 603 apiece on the National Stock Exchange. The shares are up around 25% since the company announced its March quarter earnings on May 27.

 

All the five brokerage reports on the company available with Informist have a "buy" recommendation on the stock with an average target price of INR 606. This would imply a marginal upside from the Wednesday price.

 

The following are the Apr-Jun earnings estimates for PG Electroplast from five brokerages in descending order of the estimates of consolidated net profit, in INR million:

 

Brokerage	Net Sales	Net Profit	EBITDA
Anand Rathi Share and Stock Brokers Ltd.	20,511	1,084	--
Nirmal Bang Equities Pvt. Ltd.	19,550	1,003	1,615
JM Financial Institutional Securities Pvt. Ltd.	20,001	919	1,650
Nuvama Wealth Management Ltd.	17,385	798	1,367
PhillipCapital (India) Pvt. Ltd.	19,550	690	1,290
Average	19,399	899	1,481

 

End

 

Edited by Pankaj Aher

 

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