Unseasonal rains and early monsoon arrival have impacted up to 34 per cent of the revenue of listed room-air-conditioner companies in the June quarter.
Listed durable goods makers, including Voltas, Blue Star and Havells, have reported a 13-34 per cent decline in their housing room-air-conditioning (RAC) segment in the latest June quarter, creating short-term pressure on their topline and margins.
Besides rains, the impact was further accentuated by an exceptionally high base in the corresponding quarter of the previous year, which had benefited the makers from a harsh and prolonged summer that drove record sales.
However, some of them reported a better performance in their Commercial Air Conditioning business and expect to continue the momentum.
The near-term environment remains challenging for the RAC segment, which is expected to be sized around 12.5 million units. However, companies are looking ahead to a demand revival during the upcoming festive season and expect to close FY26 with reasonable growth.
"During the quarter, weather-related volatility had a significant bearing on temperature-sensitive categories, most notably the air conditioning category. The summer of 2025 arrived late and stayed mild, and ended abruptly, curtailing peak demand for air conditioners," Voltas said in its analysis of Q1 results.
In the June quarter, Voltas' revenue from "unitary cooling products for comfort and commercial use", which comprises its RAC business, was down 24.57 per cent to Rs 2,867.86 crore.
It was Rs 3,802.17 crore in the corresponding period of the preceding fiscal.
Home-grown Havells also reported a decline of 34.4 per cent to Rs 1,261.85 crore in the revenue of its Lloyds' business in the June quarter.
The revenue of Lloyds, which houses its residential air-conditioner business, was Rs 1,924.11 crore a year ago.
Havells Chairman and Managing Director Anil Rai Gupta said the company has also witnessed a decline in fan and room cooler business due to intermittent rains.
"So, that also saw a significant decline in sales, very similar to what we saw in the air conditioner business," he noted.
Similarly, Blue Star revenue from its consumer-facing room AC business declined 13.3 per cent to Rs 1,499.37 crore in the June 2025 quarter. It was Rs 1,729.52 crore a year ago.
"FY26 started on a softer note, driven primarily by unseasonal rains across the country, which resulted in a muted demand primarily for the Room Air-Conditioning segment," Blue Star said in the investors' update.
According to Blue Star, the June quarter presented "unexpected headwinds" due to the early onset of monsoon across India, making this an unusually soft summer season.
"The Room Air Conditioners business experienced unexpected headwinds due to the early onset of monsoon and an overall mild summer, resulting in subdued demand," it said.
On the other hand, its commercial refrigeration business delivered strong growth during the quarter, driven by rising demand from the processed food and pharmaceutical sectors, reflecting a positive turnaround in key end-user industries, it said.
According to Tata group firm Voltas, its trade partners had built up inventory in anticipation of strong demand, but softer secondary sales led to slower off-take and elevated stock levels, prompting a temporary adjustment in factory operations. To sustain market momentum, Voltas intensified its efforts to drive secondary sales through focused promotional activities, which placed some pressure on margins.
Meanwhile, Blue Star said it will continue to invest in expanding its distribution footprint across the country and remain confident in its outlook for the rest of the year.
