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The consumer durables sector is expected to post a steady performance in 4QFY25, led by strong growth in Cables & Wires and Large Appliances segments. In Cables & Wires, demand is improving due to channel restocking, better execution of infrastructure projects, and the impact of higher raw material prices. Cooling products like air conditioners and refrigerators are also seeing healthy traction, supported by early summer conditions and active inventory build-up by dealers. While demand for kitchen and other home appliances remains soft, the fan category may see moderate growth, especially for players with a strong presence.

* C&W to see strong growth on the back of restocking and rising input costs: The Cables & Wires (C&W) segment is likely to post strong revenue growth in the upcoming quarter, supported by a combination of volume recovery and favourable pricing trends. Demand momentum is being driven by channel restocking, especially in wires, as channel partners replenish low opening inventories amid rising copper prices. Additionally, improved execution of infrastructure and industrial capex projects is supporting volume growth across key players. Higher input costs, including raw material inflation and currency depreciation, are also contributing to value growth. For RR Kabel and Havells, we expect 20% growth YoY in the C&W segment. For V-Guard, we expect the electricals segment to grow 16% YoY. We expect margins to improve sequentially for the three companies.

* Large appliances to benefit from the expectation of a harsh summer: The Large Appliances segment, particularly room air conditioners (RACs), is expected to report strong volume-led growth this quarter, supported by early seasonal demand and aggressive inventory stocking by trade partners. Channel inventories had remained low leading into the season, and the early onset of summer has triggered a sharp uptick in retail demand as well as restocking activity. This has created a favourable setup for companies with a strong RAC portfolio. We expect revenue growth of 20% YoY for Voltas UCP and Blue Star UP segments while Lloyd (Havells) is expected to grow 25% YoY. For Blue Star, we expect margins to remain under pressure, despite the healthy topline momentum. Elevated raw material costs and limited ability to fully pass on inflation – amid intensified price competition – are likely to weigh on profitability across players. Companies with a balanced cooling appliance mix, including refrigerators and commercial cooling products, may see relatively better performance, particularly where market share gains continue.

* Fans to experience decent growth while other appliances lag: The electrical consumer durables (ECD) segment is expected to report moderate growth, with performance led by select categories. Fan sales are likely to witness a healthy pick-up, supported by seasonal tailwinds, new product launches, and a favourable base. We expect 9% YoY revenue growth for Crompton. For Havells, we expect ECD segment to register ~16% YoY revenue growth. However, overall growth in the appliances category may remain constrained due to muted consumer sentiment and subdued demand in kitchen appliances, which continue to face headwinds from higher penetration levels and seasonally weaker demand. Pumps and select water-related products may see sustained traction in some portfolios. Despite the mixed demand environment, operating margins are expected to improve modestly year-on-year, driven by easing losses for a few players and better cost absorption across the board.

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