Consumer durable companies faced a mixed July-September quarter of 2026 as competitive pressures and commodity inflation muted earnings, though premium categories and export demand offer bright spots for market leaders. Harshit Kapadia, Vice President of Industrial, Defence, Railway, Consumer Electrical/Durables/Electronics at Elara Capital, prefers LG Electronics India in the room air conditioning space while maintaining a cautious near-term stance on cable and wire margins due to aggressive new market entrants.
Dissecting recent earnings, the Voltas unitary cooling products segment recorded volume growth upwards of 32%, benefiting from a low base and price support despite a non-seasonal quarter. However, the company's project-focused electro-mechanical projects division fell short of expectations.
Whirlpool of India faced difficulties capitalising on premium-driven market demand due to existing product gaps. Both manufacturers struggled to pass on complete price hikes amid commodity inflation, leading to muted earnings. In contrast, LG Electronics stands out by capturing premium demand and exploring export opportunities unavailable to domestic peers.
"That's where one of the delta movers is there for LG Electronics," Kapadia noted, highlighting it as a unique growth driver. Within the broader consumer electrical space, V-Guard Industries is the top pick, followed by Crompton Greaves Consumer Electricals.
The cables and wires sector delivered a stellar second quarter, with volume growth accelerating from mid-single digits towards double digits across categories. Despite robust top-line momentum, the October-December quarter of 2026 margins face headwinds following UltraTech Cement's September launch of the UltraVolt brand.
The new entrant introduced aggressive incentive schemes for dealers and electricians, prompting established players to respond in kind. Watch the full conversation hereUltraTech has completed a capital expenditure of nearly ₹1,800 crore, which could generate ₹8,000 crore to ₹10,000 crore in revenue depending on copper prices.
The conglomerate aims to become the second-largest player in the wire category, maintaining pricing parity with Polycab India and Havells India while heavily incentivising channel partners. The product rollout remains in its early stages, primarily utilising the company's building solutions network, with broader consumer reach expected from November.
Once margin pressures bottom out, the underlying strong demand supports a positive outlook for Polycab over a one-year-plus horizon. Catch all the latest updates from the stock market here