India | Cross-Sector Views: Diversified: Hot Weather; But Lukewarm Q1

Research evidence excerpt

India | Cross-Sector Views: Diversified: Hot Weather; But Lukewarm Q1

India | Cross-Sector Views EquityJulyResearch8, 2026

Exhibit 1 - We est Moderate EBITDA Growth inDiversified: Hot Weather; But Lukewarm Q1

Jun26-Q

% YoY Estimated Change

29%Despite healthy +16%YoY sales growth, we est moderate +10% EBITDA in

Jun26-Q, impacted by input cost surge post ME conflict. Summer plays (Air 18% 16% 16% 16% 16%

11% 10% 10%Cons, Fans) and C&W is est to witness healthy sales growth. While Air Cons 13%

and PIDI hiked prices in Apr and May, full pass-on may take time, effecting

Cables&Wires Electricals, Plastic Pipes EMS OverallYoY margin dip in Q1. Pipes volumes can see destocking pressure due to Durables

weaker PVC price in Q1. Mgmt comments on supply chain, price hikes is .Source: Jefferies estimatesAvg. Sales Avg. EBITDA

key. Top Picks POLYCAB, LGEL.

.

Lukewarm EBITDA Growth: In Jun26-Q (Q1FY27e), we est our diversified coverage (19 stocks

across 7 sectors) to post avg sales/EBITDA growth of +16%/+10%YoY. We forecast coverage Recent Research Notes:

OPM to decline by -50bps YoY, impacted by input cost escalation due to ME conflict. Revenue

of summer Plays (Air Cons, Fans) LGEL, VOLT, BLSTR, HAVL, WHIRL, CROMPTON, VGRD Decoding PLIs: Looking Back, Moving

likely to benefit from strong summer over April-May26, and -40% monsoon deficit in Jun26. Forward

Corporate comments on price hikes, input costs and supply chain would be key to watch.

India EMS: Read-Through from China Trip

Durables: Sizzling Summer: We est. summer plays (RAC+Fans) to post avg sales/EBITDA

Polycab FY26 Annual Report Analysis:

growth of +15%/+13% YoY. As cited by BLSTR mgmt in early Jun26, RAC industry witnessed

The Eye of the Tiger

est 40%+ YoY volume growth in May26.