PG Electroplast Ltd

Issue overview

• Type of issue: QIP of equity shares; proceeds disclosed for use per offer document.
• Total size and net proceeds disclosed; no undersubscription reported.
• Main objectives: fund subsidiary working capital, capex at expansions, and general corporate purposes.

Utilisation of proceeds

• PG Technoplast working capital: fully utilised; no idle funds.
• Supa Unit capex: fully utilised; no unutilised funds.
• Karoli Unit capex: partially utilised; remaining funds idle awaiting further disbursement.
• Purchase of equipment: fully utilised; no unutilised funds.
• Company borrowings repayment: fully utilised.
• PG Technoplast repayments: fully utilised; funds used for debt prepayment.
• General Corporate Purposes: partially utilised; some unutilised funds; balance to be deployed; board-directed allocation for GCP.
• Unutilised funds held in current accounts or deposits; deposits redeployed to operations.

Governance and compliance

• All material approvals noted as undertaken; GCP allocations approved by the board.
• No material adverse regulatory actions; no major deviations from prior monitoring reports.
• Delays attributed to plan approvals, business cycles, and equipment procurement.

GCP

• GCP usage: funds deployed toward plant machinery and building for PG Technoplast; board approval obtained.
• Board approval covered the GCP allocation; monitoring confirms alignment with approved plan.

Meeting Details

• Date: August 07, 2026
• Type/Mode: Virtual group earnings call (listen-only)
• Event: PG Electroplast Q1 FY27 Earnings Conference Call
• Organizer: Axis Capital (host)
• Recording/Transcript: Conference recorded; transcript available

Participants

• Managing Director – Finance
• Managing Director – Operations
• Chief Financial Officer

Purpose

• Discuss Q1 FY27 earnings results
• Investor interaction and Q&A

Financial Performance

• Consolidated quarterly revenue was INR 2,034 crores, up 35.2% YoY.
• EBITDA stood at INR 156.2 crores, up 12.1% YoY; margin 7.7%.
• Net profit INR 75.3 crores, up 12.9% YoY.
• Product business contributed 80% of sales.
• AC grew 38.1%; washing machines 67.2%; coolers 3.4%.
• Electronic business grew 65.3% YoY and contributed 5.3% of revenues.
• JV Goodworth Electronics sales INR 177.3 crores; EBITDA INR 6.3 crores.
• PG Technoplast sales INR 1,600 crores for the quarter.
• Gross margin softened due to copper, aluminum, and rupee depreciation.
• Cash and bank balance INR 491.3 crores; modest debt.

Capex & Capacity Expansion

• Washing machine plant online at DMIC Greater Noida; capacity 1.8 million annually.
• Washing machines grew 150% YoY; launching 18–20 kg range.
• Sri City fridge facility progressing; commercial production by Q4 FY27; capacity 1.2 million.
• Anchor customer secured; discussions with others; soft commitments.
• Compressor at Supa on track; mass production this year; 2 million capacity.
• Capex this year around INR 400 crores for compressors and refrigerators.
• Salarpur consolidation: relocating some units from Greater Noida.

Outlook & Guidance

• Management expects 20%+ full-year volume growth; low base supports upside.
• Margins ex-PLI improved; expect pass-through as rupee stabilizes.
• No quarterly guidance; aspirational full-year margin around 8%; not guaranteed.
• AC share currently 60–65% of sales; diversification planned.

Q&A Highlights

• RAC primary growth around 20–25%; ASP up 10–12%.
• June-end industry inventory near normal; competition keeps inventories elevated.
• RAC outsourcing percentage is rising.
• Washing machines grew 67% this quarter; strong ramp expected.
• Compressor price around INR 2,800–3,000; RAC realization about INR 21,000.
• Mass production of compressors by December–January; potential second line later.
• No order-book disclosure; management targets 20%+ volume growth; margins to normalize.

Risks & Execution

• Compressor imports restricted to 25% of FY25 levels until March 31, 2027.
• Industry may face compressor supply shortfall due to quotas and capacity additions.
• Copper tubing imports restricted from November; strategic inventory remains important.

Meeting Details

• Date: Wednesday, August 19, 2026.
• Time: 10:00 AM to 05:00 PM.
• Mode: Physical; Nature: Group Meeting.
• Organised by Axis Capital Ltd; Venue: Singapore.
• Participants: Company representatives will participate.
• Purpose: Participation in Axis Capital India Corporate Day 2026.

Meeting Details

• Date: August 07, 2026; Earnings conference call with investors/analysts.

Participants

• Participants: Investors/Analysts.

Purpose

• Purpose: Discuss financial performance for quarter ended June 30, 2026.

Additional Notes

• Recording: Audio recording of the call available on company website.

Meeting Details

• Board meeting on Aug 06, 2026; via video conferencing; time not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 01, 2026 to August 09, 2026.

Furnished to stock exchanges

• RTA certified that dematerialised/rematerialised security details were furnished to all stock exchanges.
• Details were furnished to all stock exchanges where the shares are listed.