INDIA CONSUMER DURABLES Q1 growth shaping up well but not margins; prefer diversified players such as Havells and LG Electronics India

Research evidence excerpt

INDIA CONSUMER DURABLES Q1 growth shaping up well but not margins; prefer diversified players such as Havells and LG Electronics India

Equity Research

15 June 2026 | 6:44PM IST

INDIA CONSUMER DURABLES

Q1 growth shaping up well but not margins; prefer diversified players

such as Havells and LG Electronics India

Air conditioners stocks have remained volatile over the last 6 months due to various Pulkit Patni

+91(22)6616-9044 |

events potentially impacting growth and profitability. Although the initial part of pulkit.patni@gs.com

Goldman Sachs India SPL

summer was impacted by unseasonal rainfall, post mid-April the summer

Nirmal Gopi, CFAstrengthened, and we expect the market to recover any lost sales volumes. However, +1(332)245-7667 | nirmal.gopi@gs.com

Q1 so far for the AC stocks has been below our initial expectations on price Goldman Sachs India SPL

increases. Recent news articles on a prolonged summer and weaker monsoon due to

El Nino weather conditions are raising questions on what this means for Q2, and in

this note, we analyze past weather conditions with RAC industry’s performance.

Below are key findings:

n In order of importance: Pre-monsoon summer intensity > Monsoon onset timing

> Monsoon quantum

n A delay in monsoon onset can extend summer and lift Q1 estimates somewhat

n A shortfall in rainfall can create dry weather effects and improve Q2

performance; however, severe drought can lead to demand destruction.

We earlier expected companies to post a strong quarter based on price increases,

favourable base and a strong summer. We still estimate companies to post good

growth in Q1 (16-29% yoy) but have lowered our original expectation primarily

because of lower price increases. A weakened monsoon may aid Q2 growth, albeit