• Demand and pricing: A widespread heatwave has drawn inventory down to minimum levels, enabling the company to pass along 12% to 15% appliance price increases to brand clients through quarterly contract adjustments.
• Product mix targets: Management aims to maintain air conditioners at 55% to 60% of revenue while targeting multifold growth in small appliances, large appliances, and components, projecting 15% to 20% industry growth in ACs.
• HiSense partnership: Manufacturing started in March, keeping the company on track to generate roughly $1 billion (around ₹8,500 crore) in revenue over the initial five-year period at standard company margin levels.
• Margin and ROCE: Management expects EBITDA margins of 7.5% to 8% and aims to reach a 15% ROCE over the next two to three years as recent facility investments begin generating operating leverage.
• Working capital normalization: Excess inventory accumulated over the previous nine months is being liquidated rapidly, with working capital and cash flows projected to normalize by Q1 FY27.