High inventory, weak demand dent prospects of air conditioner makers

Rain came early, sales didn't as cooling firms face a bloated inventory and damp volume squib

After a decent run in the January-March quarter (Q4) of 2024-25 (FY25), air conditioner (AC) manufacturers are bracing for a steep drop in volumes in the current 2025-26 (FY26) April–June quarter (Q1). With the peak season derailed by a sluggish summer and early rains, room air conditioning (RAC) firms are staring at a possible 25 per cent year-on-year decline in Q1FY26 volumes. Shares of key players have slid as much as 20 per cent in the past three months and may remain under pressure amid a weak near-term outlook.

 

In Q4FY25, scorching summer forecasts and import barriers on AC components