Revenue Growth of Large Appliance Makers to Ease in FY26, Says Crisil

The revenue growth of India’s large appliance manufacturers is expected to slow down to around 5–6% in FY2025–26 from a strong 16% growth last year, according to Crisil Ratings. The slowdown is mainly due to weaker demand for cooling products in the first half of the fiscal year, caused by an early monsoon. However, the recent Goods and Services Tax (GST) cut on air conditioners (ACs) and large-screen televisions is expected to partially boost sales during the festive season.

Crisil noted that the GST rate reduction from 28% to 18% could lead to savings of ₹3,000–₹6,000 per unit, encouraging consumers to upgrade to premium models. The agency expects overall sectoral growth of 11–13% in the second half, offsetting early losses. Refrigerator sales, which remained flat initially, are likely to grow in double digits due to higher demand for larger capacity models. Washing machines, driven by changing consumer habits and demand for dryers, may grow 7–8% this fiscal year.

Despite slower growth and rising raw material costs—particularly steel, copper, and aluminium—Crisil expects only a marginal decline in operating margins to 7.1–7.2% from 7.5% last year. Manufacturers are also expected to continue investing in capacity expansion, especially in AC compressor manufacturing, as new BIS norms take effect from April 2026. Crisil highlighted that credit profiles remain stable due to low debt levels, though it cautioned that fluctuations in raw material prices and intense competition could influence profitability in the near term.

Source: The Economic Times