Unseasonal Rains Cool Down AC Sales, Uplifting Commercial Sector
Unseasonal rains and early monsoons have significantly impacted the room-air-conditioner market, with companies like Voltas, Blue Star, and Havells reporting revenue declines of 13-34% in Q1 2025. Despite challenges, some companies anticipate a demand resurgence in the festive season and reported positive results in commercial sectors.
- Country:
- India
The room-air-conditioner market experienced substantial setbacks in Q1 2025 due to unseasonal rains and an early monsoon, slashing revenues of companies like Voltas, Blue Star, and Havells by 13-34%. The weather disruptions halted the anticipated surge in sales, adding pressure on company margins and toplines.
According to Voltas' analysis, the late onset of summer further strained temperature-sensitive categories, leading to muted demand. As some companies reported strong commercial sector performance, the prospect for demand revival rests on the forthcoming festive season, offering potential for growth by the end of FY26.
Voltas responded to high inventory levels with promotional activities, while Blue Star remained optimistic about expanding its distribution network. Despite temporary pressures, the sector is poised for resurgence as companies adapt to evolving market conditions.
(With inputs from agencies.)
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