Consumer Durables Sector Analysis - All set for a robust H2 | Q2FY26

We expect our consumer universe to witness a gradual recovery with the onset of the festive season, which has already shown encouraging signs across categories. While GST-related disruptions may temporarily weigh on near-term growth, we believe the stage is set for a robust H2FY26 driven by festive demand, improving rural sentiment, and normalization of trade pipelines. Premiumization trends remain strong, with Ethos likely to post solid topline growth, albeit with some margin pressure from cross-currency headwinds. Mrs. Bectors could see short-term softness due to GST transition and export headwinds from US tariffs; however, margin tailwinds and completion of its capex program should support a sharp rebound in H2. We also remain constructive on Borosil and Carysil, supported by strong brand equity, improving operating leverage, and sustained momentum across premium categories.  Our pecking order remains Borosil, Carysil, Ethos, and Mrs. Bectors as top picks, followed by Cello, Safari, Ecos, Mayur Uniquoters, and La Opala.

Companies under our coverage from Metal Ancillaries sector:

LA Opala

While the company has largely completed its dealer rationalization exercise, we remain cautious on near-term performance as channel checks indicate that product availability continues to be a challenge across key markets. Although product quality and brand recall remain strong, limited availability is constraining primary sales momentum. We expect revenues to decline by around 4% in the current quarter. That said, with the commencement of the new furnace and gradual improvement in capacity utilization, we remain optimistic that H2FY26 performance will be stronger as supply-side bottlenecks ease and channel inventory normalizes.

Borosil Limited

The company is expected to deliver ~12% YoY revenue growth for the quarter, led by strong performance in both the Glassware and Opalware segments as festive demand gains momentum. Dealer checks indicate healthy traction for Borosil’s products, particularly in the gifting category, supported by attractive pricing and strong brand recall. The non-glassware segment may see some limitation due to supply constraints in steel flasks; however, the upcoming steel flask facility (expected by Q4FY26) should address this bottleneck. With an expanding product portfolio, higher in-house manufacturing, and growing adoption of renewable energy (targeting ~60% of power needs), we expect Borosil’s growth trajectory to remain robust and margins to expand steadily over the medium term.

Cello World Limited

We expect the company’s consumer division (~73% of sales) to post ~15% YoY growth, supported by strong festive season demand and improved utilization at the newly commissioned glassware plant. Product availability continues to be one of Cello’s key competitive advantages, as reaffirmed by recent channel checks, and should help sustain steady performance in the consumer segment. The writing instruments business (~14% of sales) may continue to face near-term headwinds from tariff-related pressures, while the moulded furniture division is expected to deliver stable growth. Margins are likely to improve sequentially, aided by better operating leverage and higher utilization at the glassware facility.

Carysil Ltd

Carysil Ltd is expected to post around 17% revenue growth, driven by healthy performance across all segments — quartz sinks, steel sinks, and kitchen appliances — supported by higher capacity utilization. Margins are set to expand YoY on the back of improved operating leverage, leading to strong PAT growth for the quarter. Although import tariffs came into effect from August, the impact is expected to be minimal, as Carysil has successfully passed on price increases and continues to enjoy a cost advantage as the lowest-cost global producer using Schock technology.

Ecos Mobility Limited

Ecos Mobility is expected to post around 19% YoY revenue growth, driven by sustained demand across all business segments. However, margins are likely to contract due to persistently higher operating costs seen over the past quarter, resulting in flat PAT growth for the period. That said, with the expanding business activity across India and the rising establishment of Global Capability Centres (GCCs), the company remains well-positioned to sustain its growth momentum in the coming quarters.

Safari Industries

Safari Industries is expected to report low-teens revenue growth, led by strong traction across e-commerce platforms (notably during Big Billion Days) and the ongoing festive season boost. Institutional demand remains robust, with momentum extending into October. Margins are expected to improve YoY on better capacity utilization but may decline sequentially due to higher festive-led online discounting. The company has indicated no demand impact from recent management changes at VIP or increased unorganized sector activity, reflecting resilient execution and healthy brand momentum.

Mrs Bectors’ Food

Mrs Bectors’ expected to report a subdued quarter amid persistent near-term headwinds from the recent GST reduction and US tariffs (impacting ~18% of exports). The GST cut has temporarily weighed on revenue as channel partners deferred inventory purchases during the transition phase. Exports may also face pressure from tariff uncertainty and geopolitical disruptions, particularly in the US market. We estimate revenue growth of ~9% YoY, driven mainly by the bread division. While raw material prices have begun to ease, margin expansion remains constrained due to weakness in high-margin export markets. The benefit of softer input costs should reflect meaningfully from Q3FY26. For now, margins are likely to remain muted, leading to an expected EBITDA and PAT decline of 1.4% and 2.7% YoY, respectively.

Ethos Limited

The company is expected to sustain its strong growth trajectory, with revenues projected to grow ~20% YoY, supported by healthy SSG and higher ASP. New format stores are likely to witness gradual improvement as footfalls normalize. While margins may remain under pressure due to persistent cross-currency headwinds, price hikes and FTA-related benefits should aid profitability over time. We remain highly positive on the premiumization trend and the rising penetration of luxury watches in India, which continue to drive structural growth for the sector.

Mayur Uniquoters

We expect the company to deliver ~8% revenue growth, primarily driven by strong momentum in the export OEM segment, which continues to lead overall growth. The domestic market is expected to show a gradual recovery, while benign raw material prices should support margin expansion. With OEM orders gaining further traction, we believe the company is well-positioned for a robust performance in H2.

Sector Analysis by

• Rahul Dani - Research Analyst, Institutional Equities
• Vaidik Bafna - Research Associate, Institutional Equities
• Aachal Pal - Research Associate, Institutional Equities

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