Heat waves in parts of the country has led to some spike in air-conditioner sales in June. This comes after the air-conditioner makers witnessed tepid sales growth due to cooler than anticipated temperatures in April and May. However, a surge in June is anticipated to arrest the degrowth year-on-year only to a certain extent for the segment, given the high base in the corresponding period last year, which was fuelled by scorching summer conditions, AC makers noted. 

AC makers had in fact decided to cut back on production due to lower than anticipated offtake of air-conditioners at the start of FY26. But that could change if higher temperatures persist.

Ajay DD Singhania, MD & CEO, Epack Durable Ltd, told businessline, “Sales for AC makers have been lower than anticipated in April and May. However in the early part of June, there seems to be some recovery due to rising temperatures. So brands had earlier decided to slow down in terms of production and monitor the conditions but that may change if June witnesses stronger growth.”

“Overall for the June quarter, we definitely see the market either degrowing to some extent but with pick up in sales in June again, we are hoping it may end up being flat year-on-year,” Singhanis said, adding that more clarity on production schedules is expected based on how the existing inventories get liquidated in the trade. Epack Durable makes air-conditioners for some of the leading AC makers in the country.

Last year, the industry witnessed strong growth throughout the year due to unprecedented demand for air-conditioners. Consumers not only bought air-conditioners during the summer season but also during the festival period. AC has emerged as one of the fastest growing categories with the market expected to double between FY25-FY30.

“Summer of 2024 was an unprecedented one and the industry grew by approximately 57 per cent. In anticipation of harsh summer and fearing shortage of machines, the channels bought inventory in March itself this year. With intermittent rains in April and May, and with advancement of monsoon, the market is expected to shrink by around 25 per cent in Q1FY26 on the huge base of Q1FY25,” said B Thiagarajan, MD, Blue Star.

“Whenever summer sales are bad, sales during the festival season and the last quarter would be good, and I am confident that the full financial year will end with a growth of at least 10 per cent. Of course, Q1 FY26 will be a disappointing quarter, but not a disastrous one. There are multiple levers to manage the margins for the full year,“ he added.  

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Published on June 15, 2025