Consumer durables shares Voltas, Blue Star down up to 5%; here's why

AC sales in Q1FY26 could be adversely impacted as March and April sales were muted due to the delayed summer, and if demand doesn't pick up meaningfully in May and June.

Share price of consumer durable companies: Shares of consumer durables companies like Voltas, Blue Star, Havells India, and Crompton Greaves Consumer Electricals are down by up to 5 per cent on the BSE in Wednesday’s intra-day trade in an otherwise firm market.

 

As of 02:14 PM, the BSE Consumer Durables index, the top loser among sectoral indices, was down 1.1 per cent or 645 points at 58,091.96, as compared to a 0.56 per cent or 432 points gain in BSE Sensex at 80,027.

 

Shares of Havells India (₹1,585) and Blue Star (₹1,940) are down 5 per cent each on the BSE in intra-day trade, while Voltas (₹1,286) and Crompton Greaves Consumer Electricals (₹ 340) slipped 4 per cent each. 

 

 

Why did stock prices plunge?

 

A fall in the consumer durables company’s share price in an otherwise firm market comes after Havells India sounded caution on the demand for cooling products, despite reporting a 16 per cent year-on-year (Y-o-Y) profit growth in the fourth quarter of the financial year 2024-25 (Q4FY25).

 

There could be near-term growth concerns due to weak secondary sales of cooling products in March-April due to delayed summer (especially in the South region), while high inflation may dent demand for real estate product categories, according to analysts.

 

Brokerage views – JM Financial Institutional Securities

 

Air Condition (AC) sales in the April to June quarter (Q1FY26) could be adversely impacted as March and April sales were muted due to the delayed summer, and if demand doesn’t pick up meaningfully in May and June, primary sales could be impacted in Q1.

 

Muted demand in April due to the delayed summer, especially in southern markets, impacted sales of ACs, fans and other cooling products. The management remains optimistic over demand picking up in May-June but flagged that March channel stocking in ACs could impact Q1 primary sales, the brokerage firm said in the Havells India Q4 result update. 

 

Brokerage views – Motilal Oswal Financial Services

 

Low base of last year and inventory stocking led to higher revenues for Lloyd. However, delayed summer in both the South and North regions has hurt secondary sales, though there has been some accentuation of heat waves recently in the North. So far, there is no panic in the trade channel, Motilal Oswal Financial Services said in the Havells India Q4 result update.

 

The brokerage firm believes the demand pickup in the summer season and the sustainability of Lloyd's margin will be key monitorables in the near term. Wire demand too has been hit by the slow real estate demand. This has also hurt the margin of wires, and recovery needs to be monitored.  

 

About Havells India, Blue Star, Crompton Consumer, Voltas

 

Havells India is a leading Fast Moving Electrical Goods (FMEG) and Consumer Durables company. Lloyd Consumer business is a single Cash Generating Unit (CGU) engaged in the business of manufacturing, trading and distribution of consumer electronics products under the ‘Lloyd’ brand. Lloyd’s business activity includes air conditioners, refrigerators, washing machines, televisions, and other domestic appliances.

 

Blue Star offers one of India’s widest ranges of room air conditioning (RAC) and commercial refrigeration and air-conditioning products, as well as a comprehensive range of air purifiers, air coolers, storage water coolers, water purifiers, cold chain equipment and speciality products. 

 

Crompton Greaves Consumer Electricals is India’s market leader in the category of fans and residential pumps. The company’s product range includes fans, pumps, lighting solutions and a range of other categories like water heaters, air coolers, small kitchen appliances like mixer grinders, air fryers, OTG, electric kettles, etc.; other home appliances like irons and built-in kitchen appliances.

 

Voltas is engaged in the business of air conditioning, refrigeration, electromechanical projects both in domestic and international geographies (Middle East) and engineering product services for mining, construction equipment’s and the textile industry.