PG Electroplast shares crash 37% in two sessions; here is why

Shares of PG Electroplast came under heavy selling pressure ever since it announced its first quarter (Q1FY26) earnings on Friday, August 8. PG Electroplast shares have plunged as much as 37%, in two trading sessions (including today's loss), to hit an intraday low of ₹473.75 on the National Stock Exchange. On the BSE, PG Electroplast shares fell as much as 35% in the last two trading sessions to hit an intraday low of ₹473.20.

PG Electroplast came under selling pressure after the Noida-based electronic manufacturing services provider sharply cut its revenue and profit growth guidance for current financial year.

The company sharply lowered its growth guidance for the current financial year. PG Electroplast expects revenue to be in range of ₹5,700–5,800 crore implying a growth of 17% to 19%, the company had earlier guided for revenue growth of 30%.

The company has also lowered its profit growth guidance to ₹ 300–310 crore, marking a growth of 3%–7% against its earlier guidance of 39%.

Product business (washing machines, room ACs, coolers) is expected to grow at 17%–21%, against its earlier guidance of 35%.

PG Electroplast reported a consolidated net profit of ₹67 crore in the first quarter of current financial year (Q1FY26), marking decline of 20% from ₹84 crore in the same period last year.

Godrej, Blue Star, Bajaj Electricals, Croma, Acer, Voltas, Whirlpool, Daikin, Foxconn, Hyundai, Jaquar, Honeywell and LG Electronics are some of the prominent clients of the company.

Meanwhile, global brokerage Nuvama said that profit guidance was cut by 23% as products growth guidance was lowered to 18% due to cancellations. High room AC inventory across brands and channels will weigh on second and third quarter performance as well.

PG Electroplast reported weak operational performance as its operating profit also known as earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 7% annually to ₹122 crore and its operating profit margin contracted by 180 basis points to 8.10%.

“The early arrival of the monsoon impacted seasonal sales for Room ACs, making Q1 a more subdued start to the year. However, underlying demand indicators remain robust, and we see significant long-term potential given the relatively low penetration levels in core categories like Room ACs and Washing Machines, said Vishal Gupta, managing director – Finance at PG Electroplast.

“We remain focused on product innovation, capital efficient expansion, and deepening client partnerships. Our investments in new platform development and capacity enhancements across core product lines are progressing as planned. Capital efficiency remains a core operating principle and all capex decisions are guided by sustainable profitability metrics and long-term value creation. While near-term growth may moderate, our medium and long-term outlook remains strong. We are committed to building a resilient, high performing organization that delivers industry leading capital efficiency and growth,” Gupta added.

In intraday deals on Monday, August 11, PG Electroplast stock fell as much as 19.53% on the NSE and 19.66% on the BSE.