Consumer durables companies had a challenging first quarter of FY26, largely due to weak demand for summer products, as per a Union Bank of India Research report. The early arrival of the monsoon shortened the summer season, significantly impacting sales of cooling appliances like air conditioners and coolers, which dropped over 30% year-on-year. Sales of fans and refrigerators also saw double-digit declines.
Overall, combined revenue of the tracked companies remained flat at ₹273 billion. Electrical companies fared better, with a 4% increase in sales to ₹166 billion, while durables declined 8% to ₹107 billion. Wires and cables showed strong growth, driven by infrastructure demand and trade stocking amid rising copper prices. Switchgears, water heaters, and small appliances posted moderate gains, while B2B lighting remained stable as LED price declines began to ease.
Polycab stood out with 26% revenue growth, led by strong wires, cables, and FMEG performance. In contrast, Voltas, Crompton, and Havells struggled due to weak summer product demand. While most companies improved gross margins, EBITDA margins shrank overall, with durable firms hit hardest. Polycab also led in profitability, expanding its margin to 14.5%.
