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PG Electroplast Defies Industry Slump, Eyes 15-20% RAC Growth
21 Nov
Summary
- PG Electroplast expects 15-20% revenue growth in RAC business in FY26.
- Washing machine segment shows over 50% growth, momentum expected to continue.
- Capex target for FY26 remains steady at Rs 700-750 crore.
PG Electroplast is charting a course for substantial revenue expansion, targeting a 15-20% increase in its room air-conditioner (RAC) business by the end of FY26. This ambitious projection stands out against an industry-wide contraction, driven by a robust order book and positive future forecasts. The company's strategic move towards diversification is already yielding significant results.
The washing machine segment has demonstrated impressive growth, exceeding 50% in the first half of the fiscal year, with expectations of sustaining this momentum into the latter half of FY26. Concurrently, the plastic moulding and electronics assembly divisions are experiencing vigorous expansion, contributing substantially to the company's overall financial health. These thriving segments are expected to effectively counterbalance any slowdowns experienced within the room air conditioner market.
To further strengthen its operational efficiency, PG Electroplast is implementing measures to streamline its inventory. The company aims to reduce stock levels to approximately one month's worth of production by the close of December. Meanwhile, the capital expenditure target for FY26 remains firmly set between Rs 700 crore and Rs 750 crore, indicating continued investment in growth and infrastructure.
