India Appliances 1QFY27 preview – Strong growth with flattish margins

研报英文原文证据摘录

India Appliances 1QFY27 preview – Strong growth with flattish margins

7 July 2026

Equities

Household Durables India Appliances

1QFY27 preview – Strong growth with flattish margins India

◆ We expect to see strong 1QFY27 revenue growth on the back Vishal Goel*, CFA

of a low base; higher commodity costs will weigh on margins Analyst, India EMS and Consumer Durables

HSBC Securities and Capital Markets (India) Private Limited

vishalgoel@hsbc.co.in

◆ Going into 2QFY27, we expect some moderation in margins as +91 80 6737 2115

commodity pressure eases, and for 2H to show improvement Sandesh Shetty*

Analyst, India Industrials

◆ We retain Buy ratings on LG Electronics, Voltas, Havells, and sandesh1.shetty@hsbc.co.in

CGCEL, and Hold on Blue Star; trim estimates and TPs for all +91 89 8338 6423

1QFY27 should see strong revenue growth, as companies were able to push * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

inventory on better than average summers and low base from last year. Voltas

announced it sold one million units in just 81 days of the quarter, underpinning strong

demand. Blue Star MD also suggested c25% volume growth in RACs. The strong

volume growth will be supported by price hikes, leading to overall healthy topline

growth across summer products. The cables & wires segment is supported by strong

copper price increases. As disruptions in the Middle East subside, commodity prices

saw softening − but the benefit will take time to flow in. Therefore, we expect margins

to be under pressure across the names in the first half of FY27 with the second half

benefitting from festive sales and lower commodity pressure. With the advent of