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Latest World News Update > Blog > Business > Consumer durable companies expected to post weak summer sales in Q1FY26: Motilal Oswal – World News Network
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Consumer durable companies expected to post weak summer sales in Q1FY26: Motilal Oswal – World News Network

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Last updated: July 7, 2025 12:00 am
worldnewsnetwork 9 hours ago
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New Delhi [India], July 7 (ANI): Consumer durable companies are likely to post mixed trends in the first quarter of FY26, with the Room Air Conditioner (RAC) segment expected to be most impacted due to a weak summer season, according to a report by Motilal Oswal.
The report highlighted that the RAC segment was affected by initially low temperatures, followed by the early arrival of monsoon in the southern and western regions of India.
It stated, “Consumer durable companies are expected to post mixed growth trends in 1QFY26E. The RAC segment was affected by a weak summer season”
As per the report, this unusual weather pattern led to weak demand for RACs and other summer products. As a result, industry demand for RACs is estimated to decline by around 25 per cent year-on-year in Q1FY26, also impacted by a high base.
Despite the demand slowdown, no major price corrections were seen in the market during the quarter.
The report highlighted that FY25 was a strong year for the RAC segment, supported by robust volume growth and healthy margins.
However, the weaker-than-expected summer season in FY26 may result in volume decline for the segment. Still, industry players are estimating around 10-15 per cent revenue growth in FY26.
The report noted that recovery in demand during the festive season and the upcoming changes in energy norms, effective from January 2025, will be crucial for future growth.
Apart from the RAC segment, other categories also reported mixed performance. The switchgear segment continued to witness tepid industrial demand, resulting in pressure on margins.
As per the report, the lighting segment experienced subdued demand growth due to a slow pace of consumption and ongoing price erosion, although the pricing impact has already been factored into the base.
Demand for fans and air coolers was also affected by the weak summer conditions, further impacting overall seasonal product performance.
On the other hand, the cables and wires (C&W) segment stood out with strong performance. It recorded robust growth driven by mid-teen volume expansion and a price hike of around 2-3 per cent in May 2025.
Overall, while some segments like C&W showed resilience, the impact of the weak summer and changing consumption patterns led to an uneven performance across the consumer durables space in Q1FY26. (ANI)

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