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Consumer Durables: A Mixed bag for Durables; Core EMS shall continue to outshine Consumer EMS

ICICIdirect Research 17 Apr 2026 DISCLAIMER

Consumer durable industry is expected to witness a mixed performance in Q4FY26, wherein summer-oriented products such as air conditioners, coolers, fans & refrigerators are expected to witness revenue growth of 10-15% led by summer picking up across India during Jan & Feb. However, recent unseasonal rains and hailstorms have disrupted the season for AC companies while the trend needs to be watched in forthcoming days. Besides, changes in BEE norms, elevated raw materials prices and rupee depreciation has made companies to take price hikes in the range of 8-10% which shall enable them to maintain their respective margins.

Separately, kitchen products such as induction cooktops, electric kettles etc. witnessed robust demand uptick, driven by supply disruptions in LPG availability amid geopolitical tensions. Induction cooktop tends to be 10-12% of cooking appliances companies and this surge shall aid their overall growth.  

On EMS (electronics manufacturing services) front, core EMS players having exposure to industrials, automotive electronics, etc. shall continue to report robust growth, at ~50%+ for select companies, supported by robust order inflows and diversified product mix. However, consumer facing EMS companies like contract manufacturers of smart phones, TVs, etc. are likely to witness flattish to high single digit growth as volumes are impacted due to price inflation in memory chips and other commodities.

Stocks Preferred – Syrma SGS, Epack Durables, Amber Ent

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