PG Electroplast Targets 15-20% AC Revenue Growth In FY26 Driven By Strong Order Book

PG Electroplast Ltd. is confident of achieving a revenue growth of 15-20% in the room air-conditioner (RAC) business in FY26, according to its Managing Director, Vikas Gupta.

“We are quite confident that by the end of FY26, we will end RAC with a growth of around 15% to 20%, on the back of the industry degrowth of almost 10%. It is based on the order book and the forecast that we have till the FY26,” he said during a conversation with NDTV Profit on Friday. 

Diversification into non-RAC products is also paying off. The washing-machine segment has grown over 50% in the first half and the management expects to sustain similar momentum in H2FY26.

Plastic moulding and electronics assembly businesses are witnessing “robust growth” and will help offset any weakness in the room air conditioner segment.

“In our plastic moulding business, electronics category business, we are seeing robust growth. So, that is also pitching in with some numbers. And we are confident that we will be able to recover some kind of loss of revenue that we are seeing on the AC part,” he said.

Gupta added that the company is taking measures to reduce stock to approximately one month’s production level by the end of December.

“We are quite confident that the inventory should normalise by the end of December for us. When we talk about the normalisation of inventory, it means the inventory level of almost around one month of production, one month of sales.”

The MD cited a crucial regulatory deadline as the primary driver: the impending shift to a new energy rating label table in January 2026. This change is expected to increase the cost of certain products, notably five-star inverters and three-star fixed-speed ACs.

“The brands will be picking up a lot of inventory before the switchover to the new rating energy label in 2026. So, we expect a good pickup going forward,” he said.

He confirmed that the capex target for FY26 remains unchanged at Rs 700–750 crore. Around Rs 250–300 crore each will go towards expanding air-conditioner and refrigerator capacities, according to Gupta.

“The balance will be going to further product development and the investment in our washing machine category. In washing machines, we are further increasing our capacity to take it to more than almost around 2.5 million, which we are creating now,” the top executive said. 

Shares of PG Electroplast closed 0.21% higher at Rs 591.8 apiece on the NSE, while the benchmark Nifty50 settled 0.47% lower at 26,068.15.