PG Electroplast Q1FY27: consol PAT +13.8% YoY to ₹76 Cr, margins compress, misses Street

PG Electroplast's consolidated revenue grew 35.3% YoY (18.5% QoQ) to ₹2,033.96 Cr, comfortably ahead of the Street's ~₹1,940 Cr estimate (Informist poll) on strong summer demand and volume/value growth. But consolidated PAT of ₹76.22 Cr, up a slower 13.8% YoY (17.5% QoQ), missed the Street's ~₹89.9 Cr PAT estimate by roughly 15% — the quarter's bottleneck was below the operating line, not the top line. EBITDA of ₹148.2 Cr came in inline with the ~₹148 Cr consensus, meaning the revenue beat did not translate into a proportionate profit beat.

OPM was 7.29% (EBITDA/total income basis), up from 6.92% in Q4FY26 but still below the 8.06% recorded a year ago and short of management's own target — on the May concall, management guided to "improvement in EBITDA margins towards 8%" in FY27 driven by returning operating leverage and moderating input costs; this quarter's print is progress on that path QoQ but still roughly 70 bps short, so guidance reads as missed for now. NPM compressed to 3.73% from 4.40% a year ago and was flat QoQ (3.75%). The margin drag traces to depreciation, which rose 27.3% YoY to ₹26.52 Cr as new capacity at Salarpur and DMIC Greater Noida comes online — a cost that will stay elevated as those plants ramp, though the associated revenue has not yet fully arrived (Salarpur air-cooler/sanitaryware capacity is proposed for commissioning September 30, 2026; DMIC washing-machine capacity for August 31, 2026).

The stock went into the print at ₹609.75, up 8.4% over the past month of trading.

For context: PAT has now risen for 3 consecutive quarters.

Standalone results diverged sharply from the consolidated print: standalone PAT fell 42.8% YoY and 15.7% QoQ to ₹18.21 Cr, even as consolidated PAT grew — auditors note the reviewed subsidiaries (including step-down subsidiary PG Technoplast) contributed ₹58.29 Cr of pre-consolidation PAT for the quarter, confirming that nearly all profit growth is now generated outside the parent entity. The same filing also discloses, via Annexure-B, a board-approved sale of the PGEL Unit 5 Greater Noida plant (FY26 revenue ₹65.6 Cr, PBT ₹4.9 Cr) for ₹14.49 Cr cash to the open market and to wholly owned subsidiary PG Technoplast, alongside relocation/closure of a loss-making PGTL unit at Ecotech Sector-12 (FY26 PBT loss of ₹8.7 Cr) into the new Salarpur facility — a manufacturing-footprint consolidation aimed, per the company, at operational efficiency and lower recurring rental costs.