PG Electroplast submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to the National Stock Exchange and BSE on September 5, 2026. The disclosure covers consolidated operations excluding joint ventures.

The company reported a standalone turnover of ₹14,342.99 crore and net worth of ₹26,783.83 crore for CSR calculations. Manufacturing activities account for 87.8% of turnover, with room air conditioners contributing 62.2%. Exports represent 0.21% of total turnover.

What the Numbers Show

Energy intensity per rupee of turnover fell from 0.67 in FY25 to 0.32 in FY26. This improvement occurred alongside a drop in total energy consumption from 3,23,856.48 GJ to 2,34,171.75 GJ. The divergence between falling energy use and rising turnover suggests improved operational efficiency or a shift in production mix.

Workforce and Safety

The group employed 1,519 permanent employees and 6,280 workers as of year-end. Female representation stood at 3% among employees and 22% among workers. The turnover rate for permanent employees rose to 29% in FY26 from 22% in FY25.

Safety metrics remained strong with zero lost-time injuries and zero fatalities for both employees and workers in FY26. Health insurance covered 100% of permanent employees and workers.

Environmental Metrics

Total Scope 1 emissions increased to 15,339.15 metric tonnes of CO2 equivalent from 6,011.33 in FY25. Scope 2 emissions declined to 36,334.53 from 52,950.85. Water withdrawal dropped significantly to 1,03,834.74 kilolitres from 33,58,083.00 kilolitres in the prior year.

Governance and Targets

The Board oversees sustainability policies across all nine NGRBC principles. The company aims to reduce energy consumption per unit of production by 2% by 2027. It also targets a 2% annual reduction in Scope 1 and 2 emission intensities by 2027.

RINA Classification and Certification India Pvt Ltd provided reasonable assurance for core BRSR disclosures.

PG Electroplast achieved a historic milestone in Q1FY27 by crossing the ₹2,000 crore consolidated revenue mark for the first time, reporting ₹2,034.00 crore — a 35.20% year-on-year increase from ₹1,503.90 crore in Q1FY26. The growth was primarily fueled by its product business, which contributed 80.2% of total revenues, with the air conditioner segment growing 38.1% to ₹1,401.40 crore and washing machines surging 67.2% to ₹210.80 crore. Consolidated EBITDA came in at ₹156.2 crore, up 12.1% year-on-year, though the margin stood at 7.7% (reported as 7.3% in statutory filings) against 8.1% in the prior year quarter. Net profit after tax (PAT) rose to ₹75.3 crore from ₹66.7 crore year-on-year.

The Board of Directors approved the unaudited financial results on August 06, 2026. Statutory auditors SS Kothari Mehta & Co. LLP issued limited review reports confirming compliance with Ind AS and SEBI Listing Regulations. During the earnings conference call held on August 07, 2026, Managing Director – Operations Vikas Gupta stated that the industry is emerging from demand and supply shocks, pointing to genuine recovery. He highlighted that product pricing is structured on a per-unit rupee margin basis, meaning rising input costs mechanically lower margin percentages even if per-unit economics remain stable. Raw material cost increases have been partially passed through to customers.

Segment Performance and Operational Updates

The product vertical continues to be the primary growth engine. PG Technoplast Private Limited (PGTL), a wholly-owned subsidiary, reported revenue of ₹1,628.90 crore in Q1FY27. The electronics business grew 65.3% year-on-year, contributing 5.3% of total revenues, while plastic moulding and components grew 7.5% to ₹294.55 crore. Goodworth Electronics, a 50:50 joint venture, posted revenues of ₹177.30 crore with an EBITDA of ₹6.30 crore, up from ₹147.50 crore and ₹4.30 crore respectively in the previous year's quarter.

Operationally, the company commissioned its flagship washing machine manufacturing facility in the Delhi Mumbai Industrial Corridor (DMIC), Greater Noida. This state-of-the-art plant adds capacity for 1.8 million washing machines per annum. Concurrently, the company is relocating assets from its older Greater Noida unit (Unit 5) to optimize costs, with closure expected by September 2026. The Salarpur unit in Rajasthan commenced operations in September 2026, adding capacity for air coolers, moulds, and wash basins.

Capacity Expansion and New Product Lines

Management provided detailed updates on upcoming capacity additions. The compressor project at Supa is on track for mass production in this financial year, with a target start date of December or January. The first line has a capacity of 2 million units. Management noted that the industry currently imports around 50% to 60% of its compressor requirements, but government restrictions limiting imports to 25% of FY25 volumes create a supply constraint that favors domestic players. PG Electroplast plans to evaluate adding a second line immediately after stabilizing the first.

The refrigerator facility at Sri City in South India is progressing well, targeting commercial production by Q4FY27. With a total capacity of 1.2 million units, the company has secured an anchor customer commitment for 30% to 35% of this capacity. Initial production will focus on direct cool and side-by-side refrigerators, expanding to frost-free and multi-door categories in subsequent phases. Additionally, the washing machine business saw fully automatic models grow 150% year-on-year, with new high-capacity platforms launching to address higher value segments.

Financial Metrics and Balance Sheet

Consolidated EBITDA came in at 1.48b rupees against 1.21b rupees in the year-ago quarter, with the EBITDA margin contracting to 7.3% from 8.1% year-on-year, reflecting higher cost of raw materials (CoRM), which increased from 84.1% to 85.5% of sales. Profit before tax (PBT) grew 11.5% to ₹94.40 crore. The balance sheet shows total assets at ₹3,749.20 crore as of June 30, 2026, up from ₹3,464.70 crore a year earlier. Net fixed assets increased to ₹1,365.20 crore. Trade receivables rose to ₹1,051.20 crore, extending average receivables days from 45.1 to 58.6. Inventory days also increased from 72.0 to 99.5, though payable days extended significantly from 67.0 to 95.5, helping manage the cash conversion cycle.

The following table summarises the key consolidated financial metrics for the quarter:

What the Numbers Show

The divergence between revenue growth (35.20%) and profit growth underscores the impact of input cost inflation on margins. While PG Electroplast successfully leveraged scale to grow volumes, particularly in high-demand categories like ACs and washing machines, the inability to fully pass on raw material costs led to margin compression — reflected in the EBITDA margin declining to 7.3% from 8.1% year-on-year. However, improvement in employee expense ratios and stable finance costs indicate effective operational management. The shift to a net cash position, despite heavy capital expenditure on new plants in DMIC and Rajasthan, demonstrates strong liquidity management. Rising receivable and inventory days suggest working capital intensity is increasing alongside volume growth, a common challenge in consumer durables manufacturing during periods of rapid expansion. Management’s guidance of an 8% operating EBITDA margin for FY27 suggests confidence in better price pass-through capabilities as commodity prices stabilize and competitive dynamics normalize.