Air-conditioner manufacturers are reporting robust performance for the first quarter of FY27, with industry leader Voltas crossing the milestone of selling 1 million room air conditioners within the first three months of the financial year. According to reports from Essential Business Intelligence, this achievement underscores resilient consumer demand despite multiple rounds of price hikes. Godrej Appliances reported nearly 60% growth during the March-May 2026 period, significantly outpacing the industry's estimated 16-17% growth. Kamal Nandi, business head of appliances at Godrej Enterprises Group, attributed the performance to the company's expanded product portfolio, wider distribution network and its five-year comprehensive warranty offering. Voltas credited its performance to a refreshed product portfolio spanning premium, mid and value segments, stronger consumer engagement and an expanded distribution network, with the Tata Group company's sharper segmentation strategy helping cater to a wider spectrum of consumers across different price points.
However, unseasonal weather patterns, including thunderstorms and lower evening temperatures in many regions, have reduced the need for cooling appliances during the June quarter, according to industry experts. As reported by Business Standard, Kamal Nandi from Godrej Enterprises confirmed that June across the country, including north India, AC sales have gone down. At an industry level, sales have declined due to weather-related disruptions. Consumers are also down-trading to air coolers and fans because ACs have become quite expensive, with air-conditioner prices having risen by 18-20% over the last few years following multiple rounds of price hikes. An anonymous executive from a leading room air-conditioner brand told Business Standard that the summer season was weaker than expected, especially in June. Despite these challenges, on a year-to-date basis, the industry has still reported value growth of around 35%, aided by higher prices and premiumisation.
Consumer demand has remained broad-based with premium products continuing to outperform the mass segment. As reported by Essential Business Intelligence, buyers are increasingly looking beyond basic cooling and opting for energy-efficient, connected and feature-rich air conditioners with better aesthetics and health-focused technologies. Blue Star estimates industry secondary sales grew more than 30% year-on-year during April-May, while primary sales increased 20-25% by volume and 25-30% by value. B Thiagarajan, managing director of Blue Star Ltd, noted that the company has strengthened its presence across affordable, affordable-premium and premium categories rather than focusing solely on high-end products. The company expects low-to-mid teen volume growth in the first quarter while maintaining its value market share of around 14%.
While cooling products faced headwinds, beverage makers reported robust summer demand driven by immediate consumption and affordability. According to Business Standard, Coca-Cola India and South West Asia Vice President Abhishek Gupta said the company continues to witness strong summer demand, driven by immediate consumption, smaller pack formats, quick commerce, and on-the-go occasions. Mother Dairy Managing Director Jayatheertha Chary reported more than 30% volume growth in its fresh dairy and ice cream portfolio during the June quarter, driven by strong demand for ice creams, curd and dairy beverages. Havmor Ice Cream Managing Director Debabrata Mukherjee noted that impulse categories such as cones, sticks and single-serve cups have continued to drive growth, especially driven by quick commerce and immediate consumption occasions. DS Group Business Head Sandeep Ghosh said products such as raita masala, chhaachh masala, jal jeera, and black salt saw higher consumption during summer months, reflecting consumers' preference for traditional hydration and digestive products.
