Room AC makers eye 40% Q1FY27 volume surge on heatwave, but price hikes squeeze margins
Voltas, Blue Star, LG and peers ride heatwave-driven demand with ~40% AC volume growth expected in Q1FY27 and 20-25% YoY gains in FY25. Voltas targets 1M units FY27 vs 2.25M FY26 on a 12.5-13M unit industry base. BEE norm changes plus ~13% higher production costs forced 5-12% price hikes (Rs2,000-5,000/unit), pressuring entry-level demand and margins. Stocks slipped 7-10% while LG rose 5%.
Room AC makers Voltas, Blue Star, LG and others eye strong Q1FY27 on heatwave-driven demand (40% volume growth), but BEE norm changes and commodity inflation forced 5-12% price hikes, pressuring margins amid cautious entry-level demand.