Consumer Durables – Jan-Mar’26 Earnings Preview – RAC gains momentum with summer led demand
Published on 06 Apr 2026
W&C companies under our coverage is expected to post double digit revenue growth in Q4FY26, driven by improved secondary sales, and commodity-led realization gains. However, the FMEG segment is likely to remain modest, supported by strong traction in solar products and steady recovery across appliances, fans, and lighting. RAC segment is expected to deliver healthy growth led by summer-driven demand revival, pickup in secondary sales, and premiumisation from energy-efficient models. We expect our consumer durables universe to register sales/EBITDA/PAT growth of 12.6%/2.6%/3.7% YoY in Q4FY26. Furthermore, we anticipate POLYCAB, KEII, and RRKABEL to outperform, while BJE to underperform in sales. In terms of profitability, KEII is expected to outperform. Key changes in ratings/TP: We downward revise our FY27E/FY28E earnings estimates across coverage, except for LGEL, BJE, and CELLO. We upgrade BJE and HAVL to ‘BUY’ from ‘ACCUMULATE’, and VOLT to ‘ACCUMULATE’ from ‘HOLD’ due to recent correction in the stock prices, while maintaining our existing ratings on the rest of the coverage universe.
