Financial Performance

Q2 FY27 Results (Consolidated):

  • Revenue: ₹934 crore, up 42.5% year-on-year
  • EBITDA: ₹69.14 crore versus ₹44.68 crore last year (54.8% growth)
  • EBITDA Margin: 7.4%
  • Net Income: ₹13.67 crore versus ₹2.76 crore last year

H1 FY27 Business Segment Performance:

  • Product Business contributed 70.3% of sales revenue, growing 41.1% YoY
  • AC Business: ₹1,561 crores (36.2% growth)
  • Washing Machines: Crossed ₹500 crores (60.7% growth)
  • Coolers: ₹19.3 crores (4.8% growth)
  • Electronic Business: 90.3% growth, contributed 12% of revenues
  • Plastic Molding & Components: ₹521.6 crores (7.5% growth)

Joint Venture Performance:

  • Goodworth Electronics: H1 revenue of ₹623.8 crores versus ₹483.4 crores last year
  • Goodworth Electronics EBITDA: ₹22.7 crores versus ₹10.3 crores last year

Subsidiary Performance:

  • PG Technoplast: H1 sales of ₹2,130 crores (consolidated within above figures)

Balance Sheet Position

  • Cash and bank balance: ₹422.5 crores
  • Most CAPEX for FY27 already paid for
  • Outstanding CAPEX payments either in CWIP or advances to suppliers

Operational Updates

New Facilities:

1. Salarpur, Bhiwadi Campus: Now operational, consolidating operations from Greater Noida. Will house coolers, sanitaryware, plastic components and mold making facilities.

2. Refrigerator Facility (Sri City): Targeting commercial production in last quarter of FY27.

  • Capacity: 1.2 million units
  • Phase 1: Direct cool and side-by-side refrigerators
  • Phase 2: Frost-free and multi-door refrigerators
  • Anchor customers already tied up, with soft commitments from others
  • FY28 target: 700k production

3. Compressor Project (Supa): On track for mass production in FY27

  • First 2 million capacity to come online as planned
  • Trial production expected by end-November 2026
  • Mass production target: January-February 2027
  • Calendar 2027 target: 1.5 million+ compressors
  • Decision on second line expected April-May 2027

Margin Commentary

  • Gross contribution percentage softened YoY due to commodity price pass-through (copper, aluminum, plastic) and rupee depreciation
  • Margin structure is per-unit fixed amount rather than percentage-based
  • Electronics business growth (90.3%) contributed to margin pressure due to lower margins in this segment
  • Price increases implemented quarterly (January, April, October 2026, with another planned for January 2027)

Incentives and PLI

  • PLI incentives: Estimated ₹70+ crores for full year FY27
  • Booking timing: Q3 and Q4 FY27 after completing GST audit
  • Maharashtra government incentive: ₹1.55 crores booked in Q2
  • FY28 incentive outlook: ₹105-110 crores expected

Guidance and Outlook

Volume Growth:

  • Room AC: 20-25% volume growth expected for FY27
  • Target: 2.1-2.2 million units versus 1.7 million last year
  • Washing Machine: 40-50% growth expected
  • Electronics: ₹550-600 crores full-year sales target

Realization Increase:

  • Cumulative price increases across quarters expected to be ~15%
  • Q3 FY27 expected to show mid-teens volume growth
  • Q4 FY27 expected to be stronger

CAPEX:

  • FY27 CAPEX: ₹400 crores (on track, largely paid)
  • FY28 CAPEX: ₹150-200 crores expected

Working Capital and Finance Costs

  • Inventory levels increased due to strong order book and higher raw material prices
  • Working capital optimization efforts ongoing
  • Interest costs expected to remain stable in H2 FY27

Other Business Updates

  • Exports: Limited to SARC nations, small volumes
  • POS machine project: No progress due to customer issues
  • Auditor change: BSR & Company appointed as single auditor across all entities

Category-wise Performance Details

  • TV motherboards, AC controllers, battery management systems, and CCTV cameras driving electronics growth
  • Memory component price increases significantly contributed to electronics revenue growth
  • Cooler business impacted by plastic price increases and channel inventory issues