1QFY27F results preview: Cost pressure to weigh on margins

研报英文原文证据摘录

1QFY27F results preview: Cost pressure to weigh on margins

Global Markets Research

6 July 2026Consumer Durables, EMS & Digital

EQUITY: CONSUMER RELATED

1QFY27F results preview: Cost pressure to weigh on margins Research Analysts

India Consumer Durables

Healthy revenue growth led by normal summer season, Siddhartha Bera, CFA - NFASL

siddhartha.bera@nomura.comprice hikes and a low base; higher costs to drag margins

+91 22 403 74362

1QFY27F: Price hikes, volume recovery and low base to drive strong revenues, but Kapil Singh - NFASL

margins to remain weak; Digital performance to remain strong; prefer LG Electronics kapil.singh@nomura.com

India, Dixon, Cartrade and Nykaa +91 22 403 74199

Our industry checks indicate that the extended summer season (due to delayed

Tisha Mandavia - NFASLmonsoons) has led to improvement in demand for the summer portfolio. While this

tisha.mandavia@nomura.com

has led to strong uptick in retails, channels have not restocked as much given the end of +91 22 403 74034

the season. Price hikes were mostly passed on to consumers, and this supported revenue

growth in 1Q. However, there is still under-recovery which we believe would impact near-

term margins. Also, higher promotion spends by most companies in 1Q will add to the

cost pressure, in our view. Going ahead, we believe moderating commodity prices should

support margin recovery. The Digital segment’s performance has remained strong led by

premiumisation and launch of new initiatives. The EMS segment for B2C led by the

mobile segment has started seeing a sequential recovery which is a positive, while B2B

EMS has sustained strong momentum (Fig.4). We provide our segment-wise analysis

below:

• ACs: We estimate 1QFY27F retail industry sales grew in strong double digits y-y,