PG Electroplast, Blue Star: Why are consumer durables stocks weak today?

Consumer durable stocks price movement today

 

Shares of consumer durable stocks are under pressure in trade, falling by up to 10 per cent on the BSE in Monday’s intra-day trade in otherwise modestly firm market.  

Among the individual stocks, PG Electroplast tanked 10 per cent to ₹530.15 in intra-day trade. Post Q1FY26 results, in past two trading days, the stock price of consumer electronics company has plunged 28 per cent. In past seven trading days, it declined 35 per cent. The stock halved from its 52-week high level of ₹1,054.95, touched on January 6, 2025. 

PG Electroplast reported weak set of results for the quarter ended June 2025 (Q1FY26). The company also cut its FY26 revenue growth guidance from 30–35 per cent to 17–21 per cent and reduced its capex plan to ₹700–750 crore from ~ ₹900 crore.

 

   

Besides, PG Electroplast, share price of Voltas plunged 8 per cent to ₹1,202.20 and Amber Enterprises slipped 7 per cent to ₹6,866.65 in intra-day trade. Havells India, Blue Star Company, Crompton Greaves Consumer Electricals and Whirlpool of India are down in the range of 1 per cent to 2 per cent.

 

At 09:37 AM; BSE Consumer Durable index, the top loser among sectoral indices, was down 1.4 per cent, as compared to 0.05 per cent rise in the BSE Sensex.   

 

Why consumer durables stocks under pressure today?

 

In Q1FY26, PG Electroplast reported weak set of results with revenue of ₹1,503 crore up by 13.9 per cent year-on-year (Y-o-Y) however declined by 21.3 per cent quarter-on-quarter (Q-o-Q) due to early onset of monsoon and irregular weather across India.  Earnings before interest, tax, depreciation, and amortisation (EBITDA) reported at ₹121 crore, declining by 7.6 per cent QoQ and 42.9 per cent QoQ. Margins came at 9.3 per cent which dipped by 90 bps YoY and 280 bps QoQ. Profit after tax declined 21.4 per cent Y-o-Y at ₹66.71 crore.

 

The management said the early arrival of the monsoon impacted seasonal sales for Room ACs, making Q1 a more subdued start to the year. While near-term growth may moderate, the management’s medium and long-term outlook remains strong.

 

The company was caught off-guard in its overly optimistic stance in RAC demand during the quarter with the early onset of the monsoon. Anticipating strong sales, the company built up higher than-normal AC inventory levels which stood at ~₹1200 cr as on Q1 which will likely take couple of quarters to be used up. In response, the company has cut its FY26 revenue growth guidance, ICICI Securities said in a note.  Unpredictable weather

   

Voltas, a part of Tata Group, a premier air conditioning and engineering solutions provider, said the quarter was marked by unseasonal and unpredictable weather conditions. The onset of summer was delayed, temperatures remained relatively mild, and the season concluded abruptly due to early monsoon. This resulted in a sharp decline in demand for cooling products, particularly in case of Air Conditioners.

 

Trade partners had built up inventory in anticipation of strong demand, but softer secondary sales led to slower off-take and elevated stock levels, prompting a temporary adjustment in factory operations, the company said. 

 

Meanwhile, the long-term fundamentals of the business remain strong, with a volume compound annual growth rate of more than 20 percent from FY 2023 to FY 2026. With inventory levels expected to normalize and demand likely to improve, aided by upcoming regulatory changes such as revised energy efficiency norms, the segment is well positioned for recovery in the quarters ahead, Voltas said.