Consumer Durables – Sector Update – RAC leads rebound, margins remain muted
Published on 16 Sep 2026
We interacted with an established industry participant with exposure to the consumer durables market, to understand the prevailing demand environment, competitive dynamics and margin outlook across key categories. They are of the view that RAC recovery is broadening, although profitability continues to lag volume growth. FY26 was a reset year for RAC following 2 strong years, with cooling categories particularly impacted by a high base and input-cost volatility. H1FY27, however, indicates a clear turnaround led by RAC, with Jul’26 showing strong growth across RAC, refrigerators and washing machines. Importantly, the recovery is increasingly penetration-led, rather than purely replacement-led, supported by first-time ownership and consumer financing.
