PG Electroplast Falls Further 20% After Weak Q1 & FY26 Guidance Cut

On Monday, the PG Electroplast shares fell 19.53 percent, touching a day’s low price of Rs 473.75 on NSE. It witnessed another steep decline today, compounding its sharp fall from Friday, as sentiment soured following its Q1FY25 results and a downward revision in management guidance. The stock has now lost over 52 percent year-to-date, with investors aggressively cutting in positions in response to management’s slow growth in fiscal year 2026.

The company reported a consolidated net profit of Rs 67 crore in Q1FY25, marking a 21 percent year-on-year decline and a dramatic 54 percent quarter-on-quarter plunge. Revenue came in at Rs 1,504 crore, up 14 percent YoY, but sequentially lower by 21 percent. EBITDA margins deteriorated to 8.1 percent from 9.9 percent last year amid margin pressure from seasonal headwinds and operational challenges. The early onset of the monsoon severely impacted room air conditioner (RAC) sales, PG Electroplast’s largest line, leading to a notably subdued quarter. Cooler sales also slipped 3.9 percent YoY, washing machines grew 36.1 percent, and the RAC segment did manage 15.1 percent growth, but the overall momentum in consumer durables was impacted by weather-induced demand shocks.

The biggest disappointment for the market was management slashing its FY26 guidance. Revenue growth guidance was cut sharply to 17 to 19 percent from the prior expectation of over 30 percent. Net profit guidance was revised down to Rs 300 to 310 crore compared to Rs 405 crore earlier, representing just 3 to 7 percent growth versus 39 percent projected initially. Product business growth was cut down to 17 to 21 percent. Capex plans were cut down to Rs 700 to 750 crore, from Rs 800 to 900 crore.

Market reaction was swift and severe. The stock tanked around 23 percent on Friday, hitting the 20 percent lower circuit and closing at Rs 588.80 a share, with today’s further drop taking the price markedly lower. Brokerages, led by Nuvama, have responded by slashing their targets; Nuvama has cut its target price by 35 percent to Rs 710 following the guidance reduction and Q1 miss, reflecting a more cautious stance on growth potential. Most analysts remain lukewarm. As per CNBC TV18, seven analysts have recommended a ‘buy’, three are hold, and one has “sell’ rating. The average consensus target nonetheless implies substantial upside from these levels, though conviction has weakened.

The surprise revision of the guidance. The six-week losing streak for PG Electroplast, alongside the wider correction in mid- and small-cap indices, highlights the impact of volatility, sector-specific risks, and the consequence of unanticipated cyclicality in consumer durables.

Looking forward, while PG Electroplast’s long-term thematic remains intact, which is anchored by India’s underpenetration in air conditioning and home appliances and supported by a robust capex pipeline. The management remains optimistic about future opportunities in the EMS and plastic molding space, citing capital-efficient expansion and new platform development. Still, investors are watching for signs of margin stabilisation and consistency as weather patterns, input costs, and competitive dynamics change. For now, PG Electroplast highlights how weather-related demand shocks alter forecasts, can drive sharp reratings when investor optimism and growth assurances falter.