• Industry demand: Strong summer conditions drove a 25% to 30% sales revenue and volume growth across the cooling products industry in Q1, with top client Voltas contributing 25% to 30% of company revenue.
• Customer diversification: The company increased its client base from 55 to roughly 75 customers over the past year across small and large domestic appliances, keeping it on track to double revenue within two to three years.
• Pricing and margins: A 15% to 20% price increase driven by commodity inflation, dollar rise, and revised BEE star ratings was fully passed through, easing margin pressure and setting up margins to potentially cross 7% by the end of FY27.
• Capex outlook: Having nearly completed its planned ₹350 to ₹400 crore capex program, the company will spend the remaining ~₹50 crore over the next two quarters, with no major capex planned for the following 18 to 24 months.
• Inventory normalization: Robust Q1 demand has normalized trade and component inventory levels, while the company enters the final year of support under the first air conditioner PLI scheme.