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Consumer durables and electronics is witnessing healthy growth in Q1

ICICIdirect Research 23 Jun 2026 DISCLAIMER

News:As per media reports, consumer durables and electronics is witnessing healthy growth in Q1, registering 11% YoY growth in April 2026. Demand for summer products remained strong, with industry air-conditioner sales increasing 25-30% in April and May, before moderating to 8-10% growth in June following the arrival of monsoon rains. LG Electronics noted positive momentum across key appliance categories, including air-conditioners, refrigerators, televisions and washing machines, supported by improving consumer sentiment. Despite concerns around inflation, which rose to 3.93% in May from 3.48% in April, demand across the consumer durables segment remained healthy during the first two-and-a-half months of FY27.

View: Within consumer durable category, AC sales are expected to increase 25-30% on a low base. Earlier statements by Bluestar, Voltas, LG electronics confirm the same. While margins may remain under pressure in the near term due to the gradual pass-through of higher input costs, easing geopolitical tensions and stabilization in commodity prices could support a recovery in profitability going forward. Overall, the demand environment is better on a low base, providing a favourable backdrop for RAC manufacturers and its comtract manufacturers. Companies including Voltas, Bluestar, Amber enterprises, Epack durable, PG electroplast, Bosch home comfort India among others are key beneficiaries.

Impact: Positive

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