PGEL Q3 FY26 earnings call.
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Revenue
₹1,412 Cr
verified against source
Revenue YoY
46%
reported change
EBITDA
₹126 Cr
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
PG Electroplast reported a ₹1,412 crore consolidated revenue quarter with 46% YoY growth, driven by exceptional 80.5% AC revenue growth (₹932.5 crore) and 45% washing machine growth (₹194 crore). The company grew its RAC business 27% in 9MFY26 while the industry declined 15-20%, demonstrating significant wallet share gains. PAT stood at ₹60.3 crore with EBITDA of ₹126 crore. Management flagged elevated channel inventory (~5 million units) and soft sell-through (down 10-15% industry-wide) as near-term headwinds, though they expect price increases to sustain per-piece margins. Q4 seasonality typically drives the strongest quarter (₹1,460 crore in Q4FY25). Full-year guidance of ₹5,700-5,800 crore is maintained. Medium-term growth levers include refrigerator entry (1.2M capacity by Q4FY27), washing machine market share gains, and geographic hub expansion. Key risk: summer season demand uncertainty and commodity-driven margin pressure amid high channel inventory could weigh on Q4 execution against guidance.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated FY26 sales guidance of ₹5,700-5,800 crore with approximately ₹300 crore profit, implying Q4 needs to deliver ₹1,568-1,668 crore. The company expects strong seasonal Q4 with operating leverage kick-in.
- Despite 27% growth in 9MFY26, management guided to 15-20% full-year AC growth, implying moderation in Q4. Guidance assumes summer season normalizes late February-March and channel inventory clears.
- Company expects to sustain strong washing machine growth trajectory in Q4 and FY27, driven by semi-automatic outsourcing trends and new fully-automatic top-load platform additions.
- Capex breakdown: ₹300 crore for refrigerator facility (Q4FY27 operational), ₹200 crore for washing machine capacity and Greater Noida campus, ₹84 crore for 72-acre Supa land parcel. Most capex contributing in FY26-27.
Risks flagged
- Industry channel+brand inventory at ~5 million units is above normal. Manufacturing was slow in January-February as brands await sell-through pickup. If summer season disappoints, Q4 production targets could be at risk.
- Management admitted Q3 AC margins were under pressure from market share prioritization and ERP migration (120-150bps gross margin impact from reclassification). Price increases being negotiated for January-February deliveries may not fully offset commodity cost rises of 10-15% sequentially.
- Analyst asked for specific unit volume growth for Q3 AC and washing machine sales; management declined to provide citing they'll share offline. Without volume data, it's difficult to assess whether growth is price or volume-driven.
- Analyst asked for 9-month FY26 operating cash flow; CFO deferred to offline discussion. With significant capex (₹700-750 crore) and working capital buildup (inventory at ₹1,280 crore), cash generation is a key analytical gap.
Key quotes
- The most of the brands are not able to utilize the capacities as per plan and most of them for most of them at least our analysis says that the manufacturing remains uneconomical in the sense that it is not doing any value creation for them.
- We have not lost a single client and in most of the clients our market share has actually increased over a period of time. This makes the business model resilient and gives us confidence in maintaining per-piece margins.
- Price increase is surely likely to come. Because the kind of movement which we have seen in the commodity especially copper and aluminium, it's not possible to actually absorb that kind of a price increase by anybody.
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