PG Electroplast Ltd Q4 FY26 Results Analysis: PAT Plunges 37%, Margin Compresses 262 bps

PG Electroplast Ltd's Q4 FY26 numbers came in soft, with revenue of Rs. 1,716.68 Cr (-10.10% YoY) and PAT growth of -56.15% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

PGEL's FY26 results significantly underperformed management's own guidance, with revenue missing by 8-9% and PAT falling short by 33-37%. EBITDA margin compression of 262 bps and weak cash conversion (OCF/PAT of 0.34x) highlight operational and financial strain. While the Goodworth JV turned profitable and heavy capex was executed as planned, the demand environment remains weak with Q4 revenue declining 10% YoY and inventory building to concerning levels.

Key Investment Insights

Key Positives

• Goodworth Electronics JV swung to a full-year profit of Rs.296.52 Lakh from a loss of Rs.312.45 Lakh in FY25.
• Standalone PAT grew 46% YoY to Rs.12,367.41 Lakh, though driven by other income.
• Group revenue of Rs.5,288 Cr grew 8.59% YoY for FY26.
• Capex of Rs.785 Cr was deployed as planned, ahead of management's own guidance of Rs.700-750 Cr.

Risk Factors

• Full-year revenue of Rs.5,288 Cr missed management's guidance of Rs.5,700-5,800 Cr by 8-9%.
• Consolidated PAT of Rs.196.57 Cr missed the guided target of Rs.300-310 Cr by 33-37%.
• EBITDA margin compressed 262 bps to 7.32% for FY26, at the high end of the guided decline.
• Q4 revenue declined 10.1% YoY, suggesting persistent demand weakness.
• Free cash flow was deeply negative at Rs.(71,864.61) Lakh due to heavy capex and working capital absorption.
• Q4 inventory build of Rs.16,983 Lakh and receivables increase of Rs.20,447 Lakh indicate channel overhang and cash flow strain.