Consumer Durables – Jul-Sep’25 Earnings Preview – Healthy W&C momentum, while RAC lags
Published on 03 Oct 2025
W&C companies under coverage continue to see healthy growth due to improved realization aided by volume growth. Exports are expected to remain flat in Q2FY26. However, FMEG segment was impacted, mainly in seasonal products, due to the extended monsoon, though the onset of festive demand provided some relief. Demand for fans was steady with no major moment in the inventory. RAC companies are likely to witness a revival in demand with GST rationalization. We expect our consumer durables universe to register sales/EBITDA/PAT growth of 10.6%/18.6%/16.2% YoY in Q2FY26. Furthermore, we anticipate KEI and Polycab to outperform, while Voltas to underperform in sales. In terms of profitability, Polycab and RR Kabel are expected to outperform.
We continue our positive view on W&C companies given the healthy domestic demand, expanding market opportunities, and favorable industry trends in both domestic and export markets. KEI continues to be our top pick.
