1. At a Glance – Blink and You’ll Miss the Growth
PG Electroplast Ltd is what happens when a boring plastic moulding company suddenly wakes up one day and decides to cosplay as India’s Dixon Technologies with better ACs and more aggression.
Market cap is sitting at ₹16,053 Cr, stock price around ₹563, and the company just delivered ₹1,412 Cr of revenue in Q3 FY26, up 45.9% YoY, while net profit jumped 56.7% YoY to ₹62 Cr. ROCE is hovering at 19.4%, debt-to-equity a comfortable 0.20, and yes — the P/E of ~58x is screaming optimism louder than a management concall slide.
But here’s the twist: this isn’t multiple expansion alone. Volumes, capacities, ODM wins, and PLI money are all firing at once.
The stock is down ~30% over 1 year, while earnings are sprinting. So either the market is blind… or it’s waiting to see whether PGEL can digest ₹700–750 Cr of FY26 capex without indigestion.
So the real question:
Is PG Electroplast building the next Indian EMS giant — or just building factories faster than profits?
Let’s open the balance sheet and start judging.
2. Introduction – From Plastic Buckets to ODM Muscle
PG Electroplast didn’t wake up in 2020 and suddenly become an EMS darling. This journey started back in 2003, quietly supplying plastic components while everyone else was busy chasing brands and marketing budgets.
Fast forward to today, and PGEL is no longer “that plastic moulding guy.” It’s now:
- India’s 2nd largest ODM player in Room Air Conditioners
- India’s 2nd largest ODM in Washing Machines
- A serious white-goods PLI beneficiary
- A company with 11 manufacturing plants, expanding like a real estate developer with confidence issues
Revenue has grown from ₹2,160 Cr in FY23 to ₹4,870 Cr in FY25, and TTM sales stand at ₹5,481 Cr. Net profit? From ₹77 Cr in FY23 to ₹288 Cr in FY25, with TTM PAT at ₹277 Cr.
That’s not luck. That’s execution + capex + ODM stickiness.
But the company is also doing something risky:
👉 Shifting from low-margin moulding to high-working-capital finished goods
👉 Burning cash today to (hopefully) mint cash tomorrow
So before we clap, we inspect.
3. Business Model – WTF Do They Even Do?
Think of PG Electroplast as a silent partner to your AC, washing machine, or TV.
They don’t sell to you.
They sell to LG, Voltas, Blue Star, Whirlpool, Godrej, AO Smith, Crompton, and about 50+ brands that would rather outsource manufacturing than deal with labour, tooling, and PLI paperwork.
Their business runs on four pillars:
1️⃣ Products (61% of FY24 revenue)
This is the sexy part.
- Room ACs (Indoor, Outdoor, Window)
- Washing Machines (Semi & Fully Automatic)
- Air Coolers
PGEL designs, assembles, and delivers finished goods under ODM/OEM models. Brands slap their logo, PGEL does the sweating.
2️⃣ Plastic Moulding (25%)
The OG business.
High-precision moulded components for:
- Consumer durables
- Electronics
- Sanitaryware
- Fans
Low margin, stable cash, less drama.
3️⃣ Electronics (13%)
PCB assembly for TVs and electronics.
But — TV business has been shifted to a JV (Goodworth Electronics), so expect this segment to shrink in FY26 numbers.
4️⃣ Tool Manufacturing (1%)
Enabler business. Makes moulds. Not exciting. Necessary.
So ask yourself:
Do you want a boring
