Nirmal Bang reported that PGEL has cut its net profit guidance to Rs 300 crore from the earlier Rs 400 crore target. Growth expectations for the product business—which includes washing machines, room ACs, and coolers—were reduced to 17–21% (from 30%).
The brokerage now expects PGEL to deliver a revenue and PAT CAGR of 20% and 18% respectively over FY25–FY27, but has slashed FY26 and FY27 EPS estimates by 27% and 26%. Factors include slower RAC growth, softer margins, weaker operating leverage, and high inventory levels, which management aims to clear by January 2027. Nirmal Bang has revised its target price to Rs 700.