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Consumer durable & EMS: GST cut driving demand revival and premiumization trend

ICICIdirect Research 26 Sep 2025 DISCLAIMER

Besides Auto, consumer durables are also witnessing an improvement in demand and sentiments as well after GST 2.0 regime got implemented. The price cut benefits are visible in online platforms as reports suggest most e-commerce companies witnessed 23-25% demand jump in first 2 days of festive sales vs 4-5% seen last year. The offline channel is experiencing noticeable uptick in footfalls and enquiries which is expected to steadily flow in demand.
Few companies indicated that AC growth compared with September last year will be around 20% based on enquiries. However, the highlighting fact is the premiumization trend that is starkly visible as sales of large TVs (55–65"), 5-star ACs, and aspirational products are up sharply, while entry-level models are seeing modest growth. This shall support topline growth and margins esp. for the branded players.        
Overall, consumers may advance their replacement cycles slightly, while this GST cut shall be seen in conjuction with income tax rationalization, festive season and cut in interest rates by RBI aiding EMI-based purchases. Higher disposable income shall aid overall consumer durable demand across categories.  
Our Top BUY in the space include Dixon Tech (TP: Rs 20,000) and Amber enterprises (TP: Rs 9,500) who are manufacturers of TV, mobiles and air-conditioners.    

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