PG Electroplast Limited granted 8,00,000 Employee Stock Options to eligible employees and its subsidiary on May 30, 2026, under the PG Electroplast Employees Stock Option Scheme – 2020. The options are convertible into an equal number of equity shares with a face value of Rs 1 each, with an exercise price fixed at Rs 400 per share. This move aims to incentivize employees by aligning their interests with the company's growth.

The Nomination and Remuneration Committee determined the exercise price based on the market price, ensuring it does not fall below the par value of the shares. The committee retains the authority to provide a suitable discount on the exercise price. The scheme is compliant with the SEBI (Share Based Employee Benefit and Sweat Equity) Regulations, 2021.

Grant Details

The grant of options is subject to specific vesting and exercise timelines. The options will vest over a minimum period of one year and a maximum period of four years from the date of grant. Once vested, the options must be exercised within one year from the date of respective vesting.

The total number of shares arising from the exercise of these options will be 8,00,000, assuming all granted options are vested and exercised. The scheme is administered by the Nomination and Remuneration Committee, and the grant is based on eligibility criteria outlined in the scheme documents. Options granted to employees carry an exercise price that may be at a discount to the market price, as determined by the committee.

PG Electroplast Limited has released the transcript of its earnings conference call for the quarter and financial year ended March 31, 2026. The company reported a 56% year-on-year decline in consolidated net profit to INR64.2 crores for Q4FY26, down from INR146.39 crores in the same period last year. The performance was impacted by significant operational disruptions, including a shortage of commercial LPG and truck availability, which led to an estimated revenue loss of INR420 crores during the quarter.

Financial Performance

Consolidated revenues for Q4FY26 stood at INR1,717 crores, a decline of 10.1% year-on-year. EBITDA fell 43% to INR131.5 crores from INR231.72 crores in the previous year. For the full year FY26, consolidated revenues were INR5,288 crores compared to INR4,869 crores in FY25. Profit after tax for the year stood at INR193.61 crores versus INR290.92 crores in the prior year.

Operational Challenges and Outlook

Management attributed the quarterly decline to a 15% degrowth in the Room Air Conditioner (RAC) industry and specific disruptions in March. A shortage of commercial LPG forced plant shutdowns, while a lack of trucks delayed dispatches, resulting in a combined revenue loss of approximately INR420 crores. Additionally, commodity inflation and currency depreciation caused a 250 basis point impact on gross margins, while a forex loss of INR25.82 crores further pressured profitability.

Looking ahead to FY27, the company expects better-than-industry revenue growth and EBITDA margins to improve towards 8%. Channel inventories have normalized from peak levels, and new initiatives, including a refrigerant manufacturing facility in Sri City and a rotary compressor facility at Supa, are scheduled to commence commercial production by Q4FY27.