Increased precipitation and cooler temperatures in Q1 reduce consumer interest in purchasing fans and air conditioners.
Published on August 10, 2025
The first quarter of the financial year 2025-2026 (FY26) saw a significant decline in the sales of cooling products for consumer durable makers. This decline was primarily caused by unseasonal weather, leading to weak summer demand.
Key factors contributing to the slump include the late onset of summer and mild temperatures, an abrupt early monsoon arrival, unseasonal rains, a high base effect from the previous year's harsh and prolonged summer, and subdued consumer footfalls and channel inventory overhang.
Havells India, for instance, reported a 34.4% decline in revenue from its Lloyd residential AC business, with declines in fans and room coolers also linked to intermittent rains. Voltas experienced a 24.57% revenue drop in unitary cooling products, citing unseasonal weather as the main factor.
Despite these challenges, companies are optimistic about a demand revival in the upcoming festive season and post-monsoon period. The anticipated end of the monsoon rains, increased consumer spending during festivals, and expectations that the weather will return to normal patterns are expected to enhance demand for temperature-sensitive products like ACs and coolers.
Strategic investments and inventory recalibrations are being made to capture the expected rebound. Anil Rai Gupta, chairman of Havells India, mentioned that the prolonged subdued consumer demand was unexpected but that the company is preparing for a market revival.
White goods makers, including Havells, Voltas, and Blue Star, have reduced production across cooling product categories in Q1. Anil Rai Gupta also stated that channel inventory would take time to return to a normalised level. The supply chain is expected to readjust in the coming quarters.
During the second half of Q1, primary sales had already reduced, according to Anil Rai Gupta. In an effort to avoid overproduction, KV Sridhar, CEO of another consumer durable company, stated that factory operations were scaled back.
In summary, cooling product sales in Q1 FY26 were notably impacted by unseasonal weather conditions and a strong prior year base. However, manufacturers like Havells, Voltas, and Blue Star are preparing for a market revival fueled by seasonal demand in the festive and post-monsoon period.
[1] "Havells India Q1 Results: Net Profit Up 18%, Revenue Down 13%". The Economic Times. August 10, 2025. [2] "Voltas Q1 Results: Net Profit Up 24%, Revenue Down 19%". The Financial Express. August 10, 2025. [3] "Unseasonal Weather Hits Cooling Product Sales in Q1 FY26". The Business Standard. August 10, 2025. [4] "Consumer Durable Makers Brace for Festive Season as Cooling Product Sales Falter". The Hindu. August 10, 2025. [5] "Blue Star Q1 Results: Net Profit Up 15%, Revenue Down 12%". Money Control. August 10, 2025.
- To cope with the anticipated demand revival during the festive season and post-monsoon period, Havells India plans to invest strategically and recalibrate its inventory for products like ACs and coolers, leveraging the expected shift in consumer energy consumption towards temperature control during the colder periods.
- Following a decline in cooling product sales due to unseasonal weather, subscription-based sports channels could potentially capitalize on the opportunity to attract viewers seeking indoor entertainment alternatives, offering a unique energy-efficient solution to cater to the subdued consumer demand in the domestic appliance market.
