The report notes that cooling category performance remained muted this quarter, impacted by a high base effect
The Indian consumer durables sector witnessed muted demand across most categories in the fourth quarter of the financial year 2026. A report by HDCF Securities Institutional Research (HSIE) noted that cooling categories (room air conditioners, coolers, fans) were muted due to a high base, unseasonal rains in the north and delayed summer in the south.
Demand momentum in the wire and cable (W&C) segment slowed during the quarter, impacted by channel inventory reduction. Lighting growth is likely to remain in low single digits due to price deflation, while switchgear demand should be steady, the report added.
“Overall, we forecast 7 per cent revenue growth for the consumer durables universe; however, earnings before interest, taxes, depreciation and amortisation (Ebitda) and Apat are projected to decline by 5 per cent and 16 per cent YoY, respectively, due to commodity cost pressures,” HSIE noted.
The report emphasised that televisions are expected to witness strong growth, supported by World Cup led demand and kitchen appliances are likely to post healthy growth, driven by rising induction cooktop adoption amid gas shortages. Washing machines, refrigerators and water purifiers are expected to show decent performance.
Companies implemented price hikes in the quarter to pass through cost pressures. However, further increases are required to fully absorb input cost inflation, it noted. Electronics Manufacturing Services (EMS) universe is expected to sustain growth, albeit at a moderated pace, driven largely by a slowdown in Dixon Technologies’ mobile segment amid softness in the handset market and elevated memory prices.
“We have lowered valuation multiples across most companies under consumer durable coverage due to the absence of a meaningful demand recovery over the past quarters and limited visibility on a sustained pick-up. Additionally, rising commodity prices have reignited input cost inflation, posing downside risks to margins,” the report mentioned.
Cooling And Other Categories
Cooling category (RAC, coolers, fan) performance remained muted this quarter, impacted by a high base effect. While the summer season commenced positively in northern markets, unseasonal late March rainfall dampened demand, and a delayed onset of summer in the south weighed on the overall performance.
Although the RAC industry undertook price hikes of around 5 per cent in the quarter to offset input cost inflation, additional price increases will be required to fully absorb cost pressures, the report pointed out.
Demand momentum in the W&C segment slowed in the quarter. Cables outperformed wires, the report noted. However, marginally lower copper prices at quarter-end versus December drove a reduction in wire channel inventory from elevated levels, impacting the company’s sales. Metals continued their upward momentum in Q4, in line with prior trends. Average copper prices rose 45 per cent year-on-year (YoY), aluminum increased 30 per cent YoY and polypropylene prices surged 10 per cent YoY, it highlighted.
