Date: May 27, 2026

Financial Results Summary

Quarter Ended March 31, 2026 (Q4 FY26)

  • Revenue: INR 1,716.68 crore (down 10.1% YoY from comparable period)
  • EBITDA: INR 131.54 crore (down 43.2% YoY from INR 231.72 crore in 4QFY25)
  • Net Profit: INR 64.20 crore (down 56.2% YoY from INR 146.39 crore in 4QFY25)

Financial Year Ended March 31, 2026 (FY26)

  • Revenue: INR 5,288.02 crore (up 8.6% YoY)
  • EBITDA: INR 441.76 crore (down 14.9% YoY from INR 519.16 crore in FY25)
  • Net Profit: INR 193.60 crore (down 33.5% YoY from INR 290.92 crore in FY25)

Business Performance Analysis

Challenges Impacting Quarterly Performance

Q4 FY26 was highly challenging with multiple headwinds:

  • Early monsoon disrupted peak-season demand for Room AC industry
  • August GST cut announcement deferred purchases until formal notification
  • BEE rating transition triggered channel inventory adjustments that weighed on sales through January and February 2026
  • LPG constraints from Gulf conflict affected Room AC production by nearly INR 300 crore
  • Truck availability challenges resulted in estimated sales loss of nearly INR 120 crore
  • Total estimated revenue loss: approximately INR 420 crore
  • Reduced PBT by nearly INR 60 crore during the quarter

Margin and Cost Pressures

  • Excess inventory weakened pricing power
  • Full impact of commodity inflation and rupee depreciation could not be passed through
  • Estimated gross margin impact: nearly 250 basis points
  • Forex loss: INR 38.77 crore in FY26 (compared to forex gain of INR 17.99 crore in previous year)
  • Total estimated PBT impact: approximately INR 120 crore in the quarter

Operational Issues

  • Production normalized in late March but faced truck availability challenges
  • Sales shortfall caused by truck unavailability led to higher finished goods inventory
  • Certain dispatches were deferred into April
  • Company continued to incur most fixed and operating costs despite impaired production

Segment Performance

Consolidated Revenue Breakdown (Q4 FY26: INR 1,717 crore)

  • Product business: INR 1,412 crore (82.2% of total revenue)
  • Room AC: INR 1,210 crore (declined 12% YoY)
  • Washing machines: grew 70% YoY
  • Coolers: declined 10.8% YoY
  • Electronics business: 6.8% of total quarterly revenue

Joint Venture Performance

  • Goodworth Electronics (joint venture):
  • Q4 FY26 revenue: INR 155.1 crore (vs. INR 107.6 crore in 4QFY25)
  • Q4 FY26 EBITDA: INR 6.19 crore (vs. INR 0.94 crore in corresponding quarter last year)

Capacity Expansion & Backward Integration

  • Developing new refrigerator manufacturing plant in Sri City
  • Targeted commissioning: Q4 FY27
  • Setting up rotary compressor manufacturing facility at Supa
  • Operations expected to commence by Q4 FY27
  • Aim to strengthen backward integration in Room AC business

Management Commentary & Outlook

Vishal Gupta, Managing Director - Finance stated:

  • FY26 was exceptionally difficult year for Room AC industry
  • Company stayed focused on execution despite headwinds
  • Continued investment in product innovation, capacity enhancement, and new platform development
  • Deepening customer partnerships across core product lines
  • Capital allocation discipline remains uncompromising
  • Every capex decision driven by capital efficiency, sustainable profitability, and long-term value creation
  • Confidence in medium- and long-term opportunity remains strong
  • Building more resilient, higher-performing organization
  • Objective: delivering industry-leading capital efficiency and durable growth

Future Goals

  • Achieve industry-leading revenue growth
  • Drive gradual margin expansion through operational efficiencies and operational leverage
  • Maintain best-in-class capital efficiency through improved cash flows and balance sheet optimization
  • Increased opportunities from both existing and new clients
  • Well-positioned in India's consumer durables and plastics ecosystem with enhanced capacities and technological capabilities