Consumer Durables Sector Analysis - Expect gradual uptick in demand | Q1FY26

We expect our coverage universe to report gradual recovery in demand starting Q2/H2FY26. While Q1 is likely to remain muted (factoring an average of 5–10% revenue YoY growth), led by softening raw material prices, we see margins to improve QoQ. Meaningful expansion in margins is expected to materialize from Q2 / H2FY26 onwards, offering potential support to profitability. We stick with our preference for Ethos Ltd (premiumisation trend continues). Post the sharp 15%+ correction in Mrs. Bector foods since April 2025, we are now turning constructive on this name. We also like Ecos Mobility and Borosil within our coverage universe. Retain REDUCE stance on Safari Ltd given near-term growth headwinds and margin pressures.

Companies under our coverage from Consumer Durable sector:

LA Opala

The Company is expected to witness a gradual recovery, supported by the completion of its dealer rationalization program. Toward the end of last year, the company restarted both furnaces, which we believe will aid volume growth and operational stability. We expect revenue growth of approximately 7% YoY, with margins likely to improve driven by better operational efficiency. This should translate into EBITDA and PAT growth of 11% and 10% YoY, respectively.

Borosil Limited:

The Company is expected to report approximately 9% YoY revenue growth, driven by a higher contribution from the glassware segment, supported by improved utilization at the new plant. The opalware division is likely to witness steady growth, maintaining its momentum. The non-glassware segment is expected to grow as well; however, a lack of inventory in the Hydra range may limit potential in the near term and could impact sales in the coming quarters. On the profitability front, EBITDA margins are expected to remain stable, supported by increase in utilization of glassware plant. We estimate EBITDA and PAT growth of 10% and 4% YoY, respectively.

Cello Limited:

The Company is expected to post revenue growth of around 8% YoY, led by the consumerware segment, which is estimated to grow by 10% YoY, driven by strong traction in the glassware division as the new plant scales up utilization. The moulded furniture segment is likely to see stable growth of around 5% YoY, while the writing instruments division is expected to face continued headwinds, weighing on overall performance. Margins are likely to remain flat YoY, with benefits from operating leverage offset by an unfavourable mix. As a result, we estimate EBITDA and PAT growth of 7.5% and 6.8% YoY, respectively.

Carysil:

Carysil is expected to report a decent set of numbers, with topline growth of approximately 9% YoY, driven by broad-based momentum across categories. Margins are likely to remain largely stable YoY, supporting an EBITDA growth of 9% YoY. A combination of lower interest costs and a high tax burden in the base quarter is expected to result in a strong PAT growth of 21% YoY. During the previous quarter’s results, the company outlined a clear roadmap for long-term growth, with further announcements likely in the upcoming quarter. That said, any increase in tariffs could pose a risk to margins in the coming quarters, and we await further clarity on the same.

Ecos Mobility Limited:

Ecos is expected to deliver a stable performance, with no major disruptions during the quarter. The company is likely to post 13% YoY revenue growth, supported by steady demand across segments. Margins are expected to improve modestly, in line with the company’s stable business model, resulting in EBITDA and PAT growth of 14% and 13% YoY, respectively. With the continued expansion of business activity in the country and the establishment of new Global Capability Centres (GCCs), the company is well-positioned to maintain its growth momentum.  

Safari Industries:

The company is expected to post 9% YoY revenue growth, supported by a strong start to the quarter, although momentum tapered off toward the end and into the early part of the current quarter, particularly on the e-commerce front. Margins may remain under pressure, as the benefit from lower raw material costs is offset by intense discounting, though pricing trends have now stabilized. EBITDA is expected to grow by around 5%, while PAT may decline by approximately 3% YoY, impacted by a higher depreciation charge. While H1 is likely to remain soft, a pickup is expected in H2, driven by the onset of the festive season and improved demand visibility.

Mrs Bectors Food:

Mrs. Bector, during its last earnings call, had alluded to softness in demand, which we believe could continue to weigh on performance this quarter. We expect the company to post 8% YoY revenue growth, primarily driven by the bread division. Although raw material prices have started to soften, the full margin benefit is likely to reflect from Q2 onwards. For this quarter, margins are expected to remain soft on a YoY basis, resulting in a modest EBITDA and PAT growth of 3% and 4% YoY, respectively.

Ethos Limited:

The company is expected to maintain its strong growth trajectory, with revenue projected to grow by approximately 20% YoY, driven by healthy same-store sales (SSG) growth and an increase in average selling prices (ASP). Gross margins are likely to see some recovery, aided by a relatively stable currency environment. However, we do not anticipate a meaningful improvement in operating margins, given the ongoing aggressive store expansion. EBITDA is expected to grow by 17% YoY, while PAT may see a modest 2% YoY increase, impacted by higher depreciation expenses. The recently concluded fundraise is expected to strengthen the company’s balance sheet and support its continued expansion plans.

Sector Analysis by

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

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