Equity Strategy - India: Consumer durables: Mixed demand trends; Reiterate underperform on VOLT and HAVL

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Equity Strategy - India: Consumer durables: Mixed demand trends; Reiterate underperform on VOLT and HAVL

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Equity Strategy - India

Consumer durables: Mixed demand trends;

Reiterate underperform on VOLT and HAVL

Equity Strategy

Mixed trends in demand across regions 18 June 2026

Our channel checks with 15 dealers across four regions suggest a mixed trend in Equity Strategy

demand for cooling products across regions based on the varying weather India

conditions/monsoon arrival. While North and South regions have seen slowdown in Amish Shah, CFA >>

demand post rainfall, East and West regions on the other hand are seeing strong Research Analyst

demand growth due to higher temperatures. Inventory levels consequently too vary BofASshah.amish@bofa.comIndia

depending on the region, with North and South seeing normalized channel inventory Udit Dhekale >>

levels while East and West have relatively leaner channel inventory levels. Price hikes (8- Research Analyst

12% YoY for ACs) and absence of discounts however remain consistent across regions. BofASudit.dhekale@bofa.comIndia

Another round of price hikes for ACs expected ManyaResearchKakkarAnalyst>>

Dealers reported expectations of another round of price hikes (~6-7%) post June/July BofASmanya.kakkar@bofa.comIndia

over the price hikes already taken, signaling at the likely inability of companies to fully Rithik Dhiman >>

pass on cost escalations till now as highlighted by us earlier (see note: Caught in Research Analyst

crosswinds). Companies have been taking price hikes in phases since February/March BofASrithik.dhiman@bofa.comIndia

due to the rising commodity prices (+40-44% YoY). This has impacted affordability with

consumers either delaying the purchase (North and South regions) or preferring more