AC makers eye FY27 summer rebound, but copper at $12,500/t squeezes margins despite price hikes
Blue Star, Voltas, Havells, Lloyd and Crompton enter FY27 cautious after bruising FY26: Voltas Ebitda margin halved to 4.5%, Lloyd revenue fell 23%, Crompton swung to ₹230cr loss. Copper up 31%, BEE norms and FX threaten margins; Blue Star pushed 8% hikes vs 13% needed, Polycab took 18-19%.
What happened
Indian consumer durables makers (Blue Star, Voltas, Havells, Crompton, Polycab) enter FY27 cautiously optimistic on summer AC demand after bruising FY26, but
Key facts
- Blue Star income ₹12,463.9 cr (+3.5%)
- Blue Star net profit ₹527.3 cr vs ₹591.3 cr
- Voltas income ₹14,483 cr vs ₹15,737 cr
- Voltas net profit ₹370 cr vs ₹834 cr
- Voltas Ebitda margin 4.5% vs 7%
- Havells revenue ₹22,527.8 cr (+3.4%)
- Havells net profit ~₹1,690 cr (+14.5%)
- Lloyd revenue -23%
- Lloyd Ebit -₹203 cr
- Crompton revenue ₹8,095.52 cr
- Crompton net loss ₹230.76 cr
- Blue Star price hikes 8% (needed 13%)
- Polycab price hikes 18-19%
- Copper $12,500/tonne vs $9,500
- WPI 8.3% April
- AC market 30 mn units by 2030
- HVAC growth ~15% annually
Why this matters
Cyclical lows and BEE-driven capex needs make weaker players like Lloyd and Crompton's appliance arm potential consolidation targets, while Blue Star and Voltas may seek copper-hedged JVs or backward integration to defend FY27 margins.