PG Electroplast Ltd. (PGEL), a leader in India’s Electronic Manufacturing Services (EMS) and Plastic Molding, has witnessed an extraordinary financial performance for the quarter ended March 31, 2025. The company’s Board of Directors approved these results, highlighting PGEL's robust growth trajectory and strategic advancements in the industry. Driven by efficient operational practices, a solid balance sheet, and an impressive expansion strategy, PGEL has emerged as a market leader.

PGEL’s Financial Highlights for FY2025: A Record Year

For the quarter ending March 31st, 2025, PGEL reported operating revenues of INR 1,909.9 crores, reflecting an impressive 77.4% increase year-on-year (YoY). The company’s EBITDA rose sharply to INR 231.7 crores, up 93.4% from the same period last year. The most notable achievement was the 104.5% growth in net profit, which surged to INR 146.4 crores, compared to INR 71.6 crores in Q4FY2024.

When evaluating the company’s performance for the entire year, the 12-month period ending March 31st, 2025, also delivered exceptional results. PGEL's operating revenues hit INR 4,869.5 crores, representing a growth of 77.3% YoY. The company posted an EBITDA of INR 519.2 crores, up 88.9% from FY2024, and a net profit of INR 290.9 crores, a striking 112.3% increase over the previous year.

Key Business Growth Areas for PGEL in FY2025

PGEL’s success was driven by multiple strategic initiatives that resulted in expanded market share and revenue growth:

• Expanding Product Business: PGEL’s product business recorded a massive 111% growth, reaching INR 3,526 crores. This was fueled by stellar performances in key segments such as room air conditioners (ACs), washing machines, and air coolers. Specifically, room AC sales grew by an outstanding 128.5%, washing machines saw a 43% increase, and cooler sales surged by 80%.

• Electronics and TV Segment Expansion: PGEL’s joint venture, Goodworth Electronics, made significant strides in the TV business, contributing INR 544 crores in sales. This represents a 77.9% increase over the previous fiscal year, positioning PGEL as a leader in the consumer electronics space.

• Strengthening Manufacturing Capacity: The company continued to invest in its manufacturing facilities, with the successful launch of new products and the ramp-up of production capacities at all key locations. Notably, PGEL opened its second greenfield facility for room ACs in Bhiwadi, which further enhanced its operational capabilities.

• Deepening Client Relationships: PGEL maintained strong client relationships, servicing over 35 leading brands in air conditioning and over 25 key brands in the washing machine sector. The company continues to provide original design manufacturing (ODM) models to major clients, reinforcing its reputation as a top-tier supplier in the consumer durables space.

Strategic Capital Investments and Financial Resilience

In FY2025, PGEL focused on reinforcing its financial position through strategic investments and capital raise initiatives. The company raised INR 1,500 crores through a Qualified Institutional Placement (QIP), which is set to support future expansion and growth initiatives. Despite significant capex outlays and the integration of NGM, PGEL achieved an impressive Return on Capital Employed (RoCE) of 26.9%, showcasing its ability to generate strong returns on investments.

PGEL also demonstrated its capacity to optimize its fixed assets, with a net fixed asset turnover of over 5X, underscoring the company’s efficiency in managing its resources. This financial strength positions PGEL well for its future plans and upcoming growth phases.

Looking Ahead: Projections for FY2026 and Future Expansion Plans

PGEL has outlined an ambitious growth outlook for FY2026. The company projects consolidated sales of INR 6,345 crores, representing a 30.3% growth from FY2025. The net profit is expected to rise to INR 405 crores, marking a 39.2% increase over FY2025's INR 290.9 crores.

Key drivers of this growth include:

• Further Expansion of Product Business: PGEL aims for a 35% growth in its product business, expecting revenues from this segment to rise from INR 3,526 crores in FY2025 to INR 4,770 crores in FY2026. This will be driven by strong performances in the washing machine, room AC, and air cooler categories.

• Increased Capital Expenditures: PGEL is committed to further expanding its manufacturing capabilities, with planned capital expenditures between INR 800-900 crores in FY2026. This includes the establishment of four new greenfield facilities that will bolster production and operational efficiency.

• Continued Client and Market Expansion: With a strong order book and robust client commitments, PGEL is poised to capitalize on emerging market opportunities. The company continues to strengthen its leadership position, focusing on enhancing value delivery to its clients and shareholders.

Conclusion: PGEL’s Bright Future in the Consumer Durables Sector

PG Electroplast Ltd. has positioned itself for sustained growth, with a strong financial foundation, an expanded product portfolio, and strategic capital investments. The company’s focus on operational excellence and future readiness makes it a standout player in the consumer durables and EMS sectors. As it prepares for another record-breaking year in FY2026, PGEL remains committed to delivering industry-leading growth and profitability, setting new benchmarks for operational and financial performance.

PGEL’s story is one of resilience, innovation, and growth, and the future looks incredibly promising as the company continues to scale new heights in the consumer durables industry. With strategic investments and an expanding product business, PGEL is on track to achieve its ambitious targets and maintain its leadership position in the market.

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