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Consumer Durable & EMS space - Festive demand, higher ASPs and premiumization to support growth

ICICIdirect Research 01 Oct 2026 DISCLAIMER

Festive demand showcasing initial strength: Consumer durable demand accelerated in Q2FY27, with ACs growing ~30% YoY by value and ~25% by volume, while refrigerators and washing machines grew ~18-20% by value and ~13-14% by volume. Double-digit demand momentum is expected to continue through the festive season, with Navratri-Diwali accounting for ~25-30% of annual sales across major consumer categories. 
Price hikes & premiumization trend to support value growth: Further, consumer durable makers are raising prices from 1st October (today), with AC prices seeing ~5-8% hikes and TVs, refrigerators and washing machines ~3-4%, amid higher copper, steel, aluminium, freight and currency costs. Higher ASPs, the continued shift towards premiumization (55” TV, 8kg+ washing machine, French-door refrigerators, dishwashers, etc. witnessing stronger traction) and the benefit of last year’s GST rate cut in select products from 28% to 18% should support business growth. EMI and financing schemes are also playing their role in boosting festive purchases. 
Smartphones: India’s average smartphone selling price rose 16% YoY in H1 2026 to ~₹30,500 ($318) in Q2 2026. Although overall smartphone volumes are expected to decline ~13-17% amid higher handset prices and memory costs, the sharp increase in ASPs and premiumization trend should more than offset the volume decline, supporting festive-season topline growth. 
Stocks: Overall, festive demand, along with increasing ASPs, premiumization, GST and EMI benefits, should support consumer durable companies like LG Electronics India, Voltas, Whirlpool of India, IFB Industries, Blue Star, Havells India and Crompton; manufacturers i.e. consumer EMS companies like Dixon Technologies, Amber Enterprises, PG Electroplast and Epack Durable. Retailers like Aditya Vision and Electronics Mart. Whereas distributor like Redington shall benefit from strong domestic demand of Apple products which is ~31% of its revenue.

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