- PG Electroplast signed an agreement to manufacture POS devices with PAX India by year-end
- This marks PG Electroplast’s entry into payments and fintech hardware manufacturing in India
- The company’s Q1 AC sales fell due to early monsoons, causing a 22% share price drop
PG Electroplast is in focus after the company signed a new agreement to manufacture Point-of-Sale (POS) devices. These devices are hardware and software systems used by businesses to process customer transactions and manage sales. These can process multiple transactions including those with a credit card swipe and mobile payment.
The EMS player has signed a definitive agreement with PAX India, a subsidiary of PAX Global Technology Limited listed in Hong Kong. Agreement involves manufacturing POS devices in India. PG Electroplast will manufacture PAX-branded POS devices at its existing facilities with production slated to begin by the end of this year.
This agreement is key as it marks PG Electroplast's entry into the payments and financial technology hardware segment.
Commenting on the agreement, Mr. Vikas Gupta, Managing Director – Operations, PG Electroplast Limited, said, “We are proud to partner with PAX, a global leader in POS devices, to bring advanced digital payment solutions to India under the Make in India initiative. With this partnership, PGEL becomes one of the very few companies in India to manufacture POS devices, further diversifying our portfolio and reinforcing our commitment to scaling EMS in high-growth technology categories.”
This comes at a critical time for PG Electroplast. The company saw a sharp downward reaction with a 22% fall in share price on 8th August 2025 led by slower sales of Air Conditioners in Quarter 1. Due to the earlier onset of monsoons, AC sales fell which led to brands cancelling further orders. In their Quarter 1 conference call, the management highlighted they were ‘'not fully prepared for that kind of shift in this quarter''.
PG Electroplast cut its FY26 guidance as well and now expects consolidated revenues at Rs 5,700–5,800 crore vs earlier guidance of Rs 6,345 crore. This will lead to FY26 revenue growth now seen at 17% to 19% vs previous guidance of 30% growth.
The GST boost with a potential rate reduction for consumer durables including ACs to 18% versus 28% earlier will lead to incremental boost for the industry. This will also boost confidence of revival in consumer demand for EMS players like PG Electroplast among others.
At 11:07 am, the stock was up 3.46%. The stock is up 14% in the last 3 days given the likely GST reduction news.
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