PG Electroplast Q2 FY27 Results (NSE: PGEL)
Signal: Margin expansion
The read
The quarter shows a margin inflection from the 4.6% consolidated OPM in Q2FY26 to 6.4%, but the trajectory remains uneven: revenue grew 42.5% YoY while gross margin compressed 389bps, and consolidated PAT of ₹1,366.51 lakh was only 52.8% of standalone PAT because of subsidiary drag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹933.88 Cr | +42.5% | -54.1% |
| EBIT | ₹31.63 Cr | +292.0% | |
| Net profit | ₹13.67 Cr | +395.1% | |
| EPS | ₹0.47 | +422.2% | |
| EBIT margin | 6.4% |
P&L walk
Revenue rose 42.5% YoY to ₹93,387.70 lakh but fell 54.1% QoQ; gross margin compressed 389bps to 17.7%, while EBITDA margin recovered 188bps YoY to 6.4%, with PAT growth amplified by the low year-ago base and a ₹455.95 lakh joint-venture contribution.
Segments
The group is materially dragged by subsidiaries and group entities: standalone PAT was ₹2,586.23 lakh versus consolidated PAT of ₹1,366.51 lakh, while one unreviewed subsidiary reported a quarterly loss of ₹1,682.89 lakh; the joint venture contributed ₹455.95 lakh of profit.
Key positives
- Consolidated EBITDA rose 101.2% YoY to ₹5,977.50 lakh versus revenue growth of 42.5%, with EBITDA margin expanding 188bps to 6.4%.
- Employee benefits expense increased only 10.4% YoY to ₹6,105.89 lakh while revenue grew 42.5%, supporting margin recovery through cost absorption.
- Standalone operating cash flow improved to ₹1,275.25 lakh in H1FY27 from an outflow of ₹820.13 lakh in H1FY26.
- Joint-venture profit contribution increased to ₹455.95 lakh from ₹38.19 lakh YoY.
Key concerns
- Consolidated gross margin compressed 389bps YoY to 17.7% even as revenue grew 42.5%, indicating that growth did not translate into gross-profit expansion; the filing does not disclose the cause.
- Consolidated PAT of ₹1,366.51 lakh was 82.1% below the immediately preceding quarter and 47.2% below standalone PAT of ₹2,586.23 lakh because of group-level losses.
- Finance costs increased 55.9% YoY to ₹2,605.62 lakh, faster than revenue growth, while depreciation increased 30.0% to ₹2,814.84 lakh.
- Standalone trade receivables rose to ₹42,627.21 lakh from ₹28,661.74 lakh at March 31, 2026, requiring monitoring of working-capital intensity.
Research and educational content only. Not investment advice.