PG Electroplast Secures ICRA Ratings for Rs. 103 Crore Credit Facilities

PG Electroplast , a prominent player in the electronics manufacturing sector, has received credit ratings from ICRA Limited for its Rs. 103 crore credit facilities. This development marks a significant step in enhancing transparency and providing stakeholders with a formal assessment of the company's creditworthiness.

Credit Ratings Breakdown

ICRA Limited has assigned the following ratings to PG Electroplast's credit facilities:

Credit Facility Type	Amount (Rs. Crore)	Rating Assigned
Long-term fund-based limits	40.00	ICRA [A-]4 (Stable)
Short-term non-fund-based limits	63.00	ICRA [A-]1

The assigned ratings provide valuable insights into the company's financial stability and creditworthiness. The ICRA [A-]4 rating for long-term facilities indicates adequate credit quality, while the ICRA [A-]1 rating for short-term facilities suggests very strong credit quality.

Implications for PG Electroplast

These credit ratings are expected to have several positive implications for PG Electroplast:

Enhanced Credibility: The formal credit assessment strengthens the company's standing with financial institutions and potential investors.
Improved Transparency: Stakeholders now have a clearer picture of the company's financial health and risk profile.
Potential for Better Terms: The ratings may help PG Electroplast negotiate more favorable terms for future financial arrangements.

Company's Financial Position

While the credit ratings provide a snapshot of PG Electroplast's creditworthiness, it's also worth noting some key financial metrics from the company's recent balance sheet:

Financial Metric	Amount (Rs. Crore)	YoY Change
Total Assets	5120.80	121.87%
Total Equity	2828.20	172.44%
Current Assets	3753.70	167.02%
Fixed Assets	1136.40	45.23%

The significant year-over-year growth across these key financial metrics aligns with the positive credit ratings assigned by ICRA, indicating a robust financial position and growth trajectory for PG Electroplast.

As the company continues to leverage these credit facilities and maintain its financial health, stakeholders will likely keep a close eye on how these ratings and the underlying financial performance evolve in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.37%	+2.66%	+4.07%	-22.85%	-11.99%	+3,908.42%

PG Electroplast , a prominent player in the Indian consumer durables manufacturing sector, reported mixed results for the second quarter of fiscal year 2026. The company faced headwinds in its air conditioner (AC) business but saw strong growth in its washing machine segment.

Key Highlights

Consolidated revenue declined 2% year-on-year to Rs 655.00 crores in Q2FY26
AC business revenue fell 45% due to early monsoons and GST cut announcement
Washing machine business grew by 55%
Company maintains FY26 guidance of Rs 5,700-5,800 crores revenue and Rs 300-310 crores net profit
Planned CAPEX of Rs 700-750 crores, including refrigerator plant setup in Andhra Pradesh

Segment Performance

PG Electroplast's performance was a tale of two segments in Q2FY26. While the AC business faced significant challenges, the washing machine segment demonstrated robust growth:

Segment	Performance
AC Business	-45%
Washing Machine	+55%

The AC business, which accounted for about 20% of total revenue, contributed Rs 131.00 crores to the quarter's sales. The washing machine segment contributed Rs 188.00 crores, showcasing its growing importance in the company's product mix.

Factors Affecting Performance

PG Electroplast's management attributed the decline in the AC business to two primary factors:

Early onset of monsoons
Announcement of GST rate cut

These factors led to a slowdown in consumer demand and increased channel inventory levels. However, the company reportedly outperformed the industry, which saw a 25% decline in the same period.

Future Outlook and Expansion Plans

Despite the challenges in Q2, PG Electroplast remains optimistic about its future prospects:

The company maintained its FY26 guidance, expecting revenues of Rs 5,700-5,800 crores and a net profit of Rs 300-310 crores.
A significant CAPEX plan of Rs 700-750 crores is underway, which includes:
- Setting up a refrigerator plant in Andhra Pradesh
- Expanding capacities in ACs, washing machines, and coolers
- Investments in tooling and specialized plastic moulding facilities

Management Commentary

Vishal Gupta, Managing Director of Finance at PG Electroplast, commented on the results: "This quarter and first half of FY '26 has been softer than what we have expected. Nonetheless, we have been able to grow our RAC business by around 2.5% in first half despite the industry posting almost 25% decline."

He added, "We remain optimistic that room AC business will see increased penetration-led growth with the recent rationalization of GST and we believe that in medium term, growth in room AC business will remain robust."

Conclusion

While PG Electroplast faced challenges in its AC segment during Q2FY26, the company's diversification strategy, particularly the strong performance in the washing machine business, helped mitigate the impact. The management's maintained guidance and ongoing expansion plans reflect confidence in the company's ability to navigate the current market conditions and capitalize on future growth opportunities in India's consumer durables market.