01 — At a Glance
An AC Maker Trading Like a Software Company
- 52-Week High / Low₹1,008 / ₹465
- Q3 FY26 Revenue₹1,412 Cr
- Q3 FY26 PAT₹62 Cr
- Q3 FY26 EPS₹2.17
- TTM EPS₹9.76
- Book Value₹102
- Price to Book6.0x
- Debt / Equity0.20x
- FY26 Revenue Guidance₹5,700–5,800 Cr
- FY26 Capex Plan₹700–750 Cr
Auditor’s Opening Rant: PG Electroplast posted ₹1,412 crore in Q3 FY26 revenue — up 46% YoY. Room ACs grew 80.5%. Washing machines +45%. CRISIL just revised the outlook from Negative back to Stable. The company is buying land faster than a Noida real estate developer, spending ₹700–750 crore on capex this year alone, and planning a 1.2 million refrigerator-per-year factory in South India. The stock, meanwhile, is down 30% in 12 months and trades at 63x P/E. This is either the setup of the decade or the valuation trap of the year. Welcome to PG Electroplast.
02 — Introduction
The Company That Manufactures Your Summer Anxiety
Every April, when Indian summers become genuinely threatening to human survival, roughly 30-odd AC brands collectively start yelling at each other and at their supply chain partners to produce more units, faster, cheaper. And somewhere in the middle of that chaos, quietly assembling 425,000 split ACs per month across factories in Noida, Roorkee, Bhiwadi, and Supa, sits PG Electroplast.
If you’ve ever bought an air conditioner from a brand you’ve actually heard of in India, there is a non-trivial chance PG Electroplast made it. They are the second-largest ODM player in Room AC finished goods in India, serving over 30 brands. They do the same for washing machines — second-largest ODM there too. They stamp plastic components for consumer durables. They assemble PCBs. They manufacture, they tool, they mould, they deliver. They are the definition of “the boring part of the supply chain that nobody thinks about until it breaks.”
Except investors have been thinking about it lately — first enthusiastically (stock hit ₹1,008 in the last 12 months), then less so (stock now at ₹614, down 30% from peak). Q3 FY26 just landed — ₹1,412 crore revenue, 46% YoY growth, PAT of ₹62 crore — and the concall was a masterclass in “cautiously optimistic” language from management while a room full of analysts tried to figure out whether the channel inventory problem is truly over or just taking a summer break.
Let’s go through the numbers, the nonsense, and the nuance — in that order.
Concall Note (Feb 2026): “We grew 27% in 9M FY26 despite the industry posting an almost 15–20% decline.” — Management. Translation: our growth is real, the industry is just having a bad year, and yes we are aware of the irony.
03 — Business Model: WTF Do They Even Do?
They Build Stuff. Big Brands Put Their Names On It. Everyone Profits.
The business model is elegantly parasitic — in the best possible way. Consumer durable brands like LG, Carrier, Voltas, Blue Star, Godrej, and Whirlpool have two options: build expensive, underutilised factories themselves, or outsource to someone who already has the scale, the tooling, and the 30 years of engineering experience. PGEL is that someone.
They operate as an ODM (Original Design Manufacturer) — meaning they don’t just assemble; they actually design the product for the brand’s spec. Then they manufacture it. Then they test it. Then they box it and ship it. The brand slaps its logo on, runs a TV ad featuring a celebrity who definitely has central AC anyway, and calls it their product. Capitalism is beautiful.
The four business lines are: Products (Room ACs + Washing Machines, ~81% of Q3 revenue), Plastic Moulding (specialty components for durables, sanitaryware, fans), Electronics (PCB assembly — TV business moved to Goodworth JV), and Tools. AC is the undisputed king, contributing ~66% of consolidated revenue in Q3 FY26 alone, with RAC at ₹932 crore. They now claim 12% manufacturing market share in India for RAC, which in a market building toward 3–4 crore units by FY31–32 is a position worth understanding.
RAC Q3 Rev₹933 Cr+80.5% YoY
Washing M/C₹194 Cr+45% YoY
RAC Capacity475KUnits/month
Brands Served70+FY25
PLI Note: PGEL has PLI approval for White Goods AC components at Greater Noida, Supa, and Bhiwadi — valid from April 2022 to March 2027. Committed plant & machinery investment: ₹321 crore. Q4 FY26 is where they typically book PLI income — management guided ₹37.5 crore coming in Q4. That’s not operating profit. That’s basically a government gift cheque arriving quarterly like a reliable uncle who actually keeps his promises.
💬 Your turn: Have you ever wondered who actually makes your air conditioner? Drop the brand name in the comments — there’s a decent chance PGEL had a hand in it.
04 — Financials Overview
Q3 FY26: The Numbers (No Spinning, Just Crores)
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