Consumer durable stocks in demand: LG India, Bata, Voltas rally up to 10%

In the past three months, the Nifty Consumer Durable index surged 15 per cent, against a 2.7 per cent rise in the Nifty 50.

Consumer durable stocks price movement

 

Shares of consumer durable companies were in focus in an otherwise subdued market on Friday with LG Electronics India surging 10 per cent to hit a record high of ₹1,736.40 on the NSE after announcing its June 2026 quarter (Q1FY27) earnings.

 

Voltas and Bata India rallied 4 per cent each, while Havells India, Amber Enterprises, Dixon Technologies and Titan Company traded up to 2 per cent higher.

 

The Nifty Consumer Durable index hit a 52-week high of 40,749.25, up 1.1 per cent on the NSE in intra-day deals. The index surpassed its previous high of 40,631.15 touched on August 3, 2026.

 

 

At 12:30 PM on Friday, the Nifty Consumer Durable index was up 0.80 per cent, compared to 0.20 per cent decline in the Nifty 50. In the past three months, consumer durable index surged 15 per cent, against a 2.7 per cent rise in the benchmark index.

 

What’s driving LG Electronics India's 10% surge?

 

LG Electronics reported strong results, with revenue growing 15.5 per cent year-on-year (YoY) to ₹7,234 crore, while it was down 10.2 per cent quarter-on-quarter (QoQ) due to seasonality. Segmentally, the home appliances segment (washing machine, fridge and AC) grew by 13.6 per cent YoY to ₹5,577 crore, while the Home entertainment segment (TV) grew 22.3 per cent YoY to ₹1,657 crore.

 

Considering the volatility in commodities and currencies, Gross margins remained fairly stable, declining 19 bps YoY and expanding 286 bps QoQ, indicating the company's ability to pass on the rising cost, according to ICICI Securities.

 

Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at ₹905 crore with EBITDA margins at 12.5 per cent which expanded by 108 bps YoY and 77 bps QoQ owing to improvement in product mix and premiumisation. Profit after tax increased 27 per cent YoY at ₹654 crore.

 

This was a quarter where profitability outpaced revenue, driven by a richer premium mix, better operating leverage on higher volume and continued cost discipline. Every category contributed to growth: televisions led on consumer interest for larger screens, refrigerators grew on premium capacities, air conditioners benefited from extended summer demand, and washing machines kept pace with peak-season categories despite being out of season. This combination reflects growth that is fundamental and portfolio-led, not dependent on any single season or category, the management said.

 

ICICI Securities expects the growth momentum to sustain, aided by increasing premiumisation and new capacity additions. The ₹5,000 crore Sri City expansions are expected to nearly double LG’s existing capacity and create a larger export opportunity, providing an additional growth lever over the medium term.

 

Consumer durable sector outlook

 

LG Electronics said the company is well positioned for the festive season ahead of Onam, Durga Puja and Diwali, with an expanded large-screen and premium television portfolio and continued momentum in washing machines and refrigerators. The company remains confident of staying ahead of its FY27 target. While it continues to monitor geopolitical developments and their bearing on commodities, currency and supply chains, these pressures are being actively managed through localisation, calibrated pricing and operational efficiency supporting the margin trajectory through the year.

 

India’s Room Air Conditioner (RAC) household penetration of under 10 per cent provides a sustainable structural growth runway underpinned by improving electrification and rising disposable incomes. Increasing frequency of extreme heat events is accelerating the transition of residential cooling from a discretionary to an essential purchase category. Premiumisation trends, AI-enabled product features, and energy efficiency improvements support value-led growth, Voltas, a Tata Group company, said in its FY26 annual report.

 

“We remain confident about medium- to long-term opportunities ahead. India’s strong economic fundamentals, rising cooling requirements, low RAC penetration, rapid urbanisation, infrastructure expansion, manufacturing growth and increasing preference for energy-efficient solutions together create a significant opportunity landscape across our businesses,” Voltas said.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Reader discretion is advised.