Weather Woes Cast Shadow on Consumer Durables: RACs Hard Hit in Q1FY26
The first quarter of FY26 saw mixed results for consumer durables, severely affecting the Room Air Conditioner (RAC) segment due to a weak summer. The unusual weather, marked by early monsoons, dampened RAC demand. While overall industry trends showed varied outcomes, the cables and wires segment thrived.
- Country:
- India
Consumer durable companies face mixed trends in the first quarter of FY26, with the Room Air Conditioner (RAC) segment notably impacted due to an unexpectedly weak summer, as per Motilal Oswal's report. Initial low temperatures and an early monsoon arrival in southern and western India contributed to this trend.
The report indicates a projected 25% year-on-year decline in industry demand for RACs during Q1FY26, attributed to unusual weather patterns and high base effects. Despite a slowdown in demand, significant price corrections were not observed, and industry players anticipate 10-15% revenue growth in FY26, banking on festive demand recovery and imminent energy regulation changes.
Other consumer durable segments also experienced diverse outcomes. While the switchgear segment faced continuous weak industrial demand, the lighting segment's growth was lukewarm due to consumption slowdown and persistent price erosion. However, the cables and wires (C&W) segment excelled with notable growth from mid-teen volume increase and modest price hikes.
(With inputs from agencies.)
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