Consumer Durables Brace For Pressure As Copper Prices Surge, Rains Disrupt Demand

After a strong year, the consumer durables space is showing signs of a slowdown. The momentum seen in FY25 has not carried forward in the same way. Demand has turned uneven in recent months.

At the same time, a sharp rise in copper prices has added pressure on costs. This has made products more expensive.

This is a sector that reacts quickly to changes in income, interest rates, and pricing. In India, price matters a lot. Even a small increase can make buyers hold back.

Weather, Pricing, And Weak Conversions Drag Demand

Last year set a high base. A long summer pushed air conditioner sales up sharply in FY25, with volumes rising 20-25% to around 12.5 million units. That kind of growth has been hard to match this year.

This time, the summer started on a softer note. Unseasonal rains and lower temperatures hit demand for cooling products. At the same time, dealers have turned cautious. Many cut inventory by about 20% compared to last year.

Costs have not helped either. Copper prices are up around 33% from last year. Companies also increased prices by around 5-10% after the new energy rules kicked in. That has made products costlier. Not ideal when demand is already weak.

Growth in the March quarter is expected to stay limited, with estimates around 8–10%. Margins may remain under pressure.

Also Read - Bajaj Consumer Care Q4 FY 26 Profit Jumps 2X; Mastek Reports Marginal Dip

Near-Term Pressure, But Long-Term Story Still Holds

There were some shifts within categories as well. Gas shortages during the quarter led to a spike in demand for induction cooktops, but that was more of a temporary move.

Overall, FY26 has started on a weaker note, especially for air conditioners, where volumes are estimated to have declined slightly.

Even then, the bigger picture has not changed much. Appliance demand is rising as higher incomes and deeper household penetration support sales. The market is likely to grow at a steady pace, with industry size seen nearing ₹3 trillion by FY29.

Sources:

Business Standard

Moneycontrol