PGEL's Q2 FY27 numbers came in mixed. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 933.88 Cr (+42.50% YoY) |
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| PAT (Q2) | Rs. 13.67 Cr |
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| EBITDA margin | 6.40% (+181 bps YoY) |
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| EPS (Q2) | Rs. 0.47 |
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| Market cap | Rs. 14,353.62 Cr |
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| CMP | Rs. 500.55 |
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Quarter Snapshot
Q2 revenue grew 42.5% YoY to Rs.933.88 Cr and H1 growth of 37.4% tracks above the 25-30% FY27 guidance, while H1 CFO of Rs.175.64 Cr (1.95x PAT) marks a real cash-flow improvement. However, Q2 EBITDA margin of 6.40% remains well below the ~8% FY27 ex-PLI goal, inventories at Rs.1,353.07 Cr sit far above the sub-Rs.900 Cr target, and an unnamed subsidiary's Rs.16.83 Cr quarterly loss dragged consolidated PAT to Rs.13.67 Cr. The margin-recovery thesis now hinges on October 1 price hikes sticking through H2 and compressor/refrigerator capacity commercializing in Dec/Jan.
Key Investment Insights
Key Positives
- Q2 revenue grew 42.5% YoY to Rs.933.88 Cr; H1 revenue grew 37.4% to Rs.2,967.83 Cr, tracking above the 25-30% FY27 guidance
- H1 PAT grew 28.9% YoY to Rs.89.88 Cr; Q2 PAT of Rs.13.67 Cr vs Rs.2.76 Cr a year ago
- H1 CFO of Rs.175.64 Cr was 1.95x PAT vs negative Rs.152.93 Cr CFO in H1 FY26, aided by Rs.247.17 Cr inventory release and Rs.382.67 Cr receivable collection
- Q2 EBITDA margin expanded 181 bps YoY to 6.40% (P&L-derived)
- H1 capex of Rs.338.05 Cr is on track against the ~Rs.400 Cr FY27 plan
- Unit 5 sold for Rs.14.49 Cr, completed by Aug 31, 2026
Risk Factors
- Q2 EBITDA margin of 6.40% (P&L-derived) is well below the ~8% FY27 ex-PLI goal; H1 margin flat YoY at 7.01% with margin normalization not yet visible in the P&L
- Material cost intensity deteriorated ~390 bps YoY to 82.26% of revenue on commodity/FX pressure
- Inventories rose QoQ to Rs.1,353.07 Cr, far above the sub-Rs.900 Cr target management set on the Q4 FY26 call
- Subsidiaries swung from +Rs.58.01 Cr contribution in Q1 to a −Rs.12.20 Cr drag in Q2, including a Rs.16.83 Cr quarterly loss at an unnamed subsidiary not reviewed by the principal auditor
- Net debt rose Rs.180.79 Cr in H1 to Rs.291.13 Cr; H1 FCF was negative at −Rs.162.41 Cr
- Delivering the 'surpass FY25 earnings' commitment (PAT > Rs.290.9 Cr) requires H2 PAT of Rs.201.02 Cr, +58.5% YoY vs H1's +28.9% growth