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Copper up 57%, aluminium 35%: Nomura sees consumer durables Q2 FY27 revenue up 15% on price hikes
Copper prices averaged about 57% higher year on year in July-September and aluminium 35%, Nomura said. It expects consumer durables revenue growth of about 15% in Q2 FY27, driven by price hikes, with air conditioner makers raising prices 5% to 7%.
The numbers
Figures from Financial Express,
| Polymer price rise over the same period: | 34% |
|---|---|
| Consumer durables Q2 FY27 EBITDA growth (Nomura): | 20% |
| Consumer durables Q2 FY27 EBITDA margin: | 8.6% |
| Nykaa Q2 revenue growth estimate: | 29% |
Why it matters to operators and investors
Input costs running 34% to 57% higher year on year (polymers, aluminium and copper) put cost-pass-through ability at the center of any consumer durables deal screen, favoring brands that can sustain hikes like the 5% to 7% AC increases.
What to watch next
- Reported Q2 FY27 revenue growth and EBITDA margin against Nomura's roughly 15% and 8.6%
- Copper and aluminium prices relative to the 57% and 35% year-on-year increases
- Announcement of a second price hike in Q4 or a rollback of the 1 October increases
- Management commentary on volumes, channel discounting and inventory after the price hikes
- Whether non-AC categories announce their own increases
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- AC makers are likely to attempt a second round of price increases in Q4 if copper and aluminium stay near current levels, since the 5% to 7% from 1 October looks short of the commodity move.
- Consumer durables managements are likely to tell analysts on Q2 FY27 calls that input costs are being passed through with a lag, and to guide on margin recovery rather than promise a full offset.
- Smaller and regional appliance brands may hold prices or run promotions to take share while larger players raise prices, which would test how far the hikes can hold.
- Customers are likely to pull some purchases forward ahead of announced increases and to trade down or delay where the price gap widens, which would make demand uneven across quarters.
- Brokerages are likely to revise FY27 estimates after the Q2 prints, with the 15% revenue and 8.6% margin figures serving as the reference point.
The source
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