Consumer Durables Sector Report - Subdued quarter | Q3FY26

We expect our consumer universe to report subdued growth in the Oct-Dec quarter. While the benefits of the GST rate cut were clearly visible in the initial months of its roll-out, interactions with dealers and management commentaries suggest that the growth momentum has slowed in December. Export-oriented companies remain slightly impacted due to higher costs stemming from US tariffs, which could delay margin recovery across much of the coverage. We also expect some near-term overhang from the recent labour code announcement. Within our consumer universe, we remain constructive on Carysil, Goldiam and Borosil ltd.

LA Opala

We expect the company to deliver ~10% YoY revenue growth (albeit on a low base), with the dealer rationalisation programme largely behind us. Early-quarter trends indicate an encouraging uptick, supporting a stronger run-rate through the period. Channel checks suggest the company continues to hold share in the Western region and remains competitive in its home market. Operating performance should improve as plant utilisation ramps up, supporting better absorption and margins.

Borosil Limited

We expect the company to report ~12% YoY growth during the quarter, led by an uptick in Glassware (23% of sales) and Opalware (33% of sales), where the company continues to build brand salience and sustain healthy momentum. The non-glassware segment (~44% of sales) may remain under pressure, largely due to BIS norms impacting steel flasks, which could also weigh on overall profitability. We expect the steel flask plant to come on stream by Q4FY26, with commercialization likely by early FY27E—supporting both growth recovery and margin improvement.

Cello Limited

We expect the company to deliver ~5% YoY revenue growth, largely due to subdued sales in December; within Consumerware (~70% of sales), growth should be supported by an uptick in Glassware aided by ramp-up at the new glassware plant, while Houseware remains a drag. Writing Instruments (~14% of sales) is likely to post relatively better growth, with revenue integration of the “Cello” brand expected to begin from January. Overall, margins are expected to stay subdued during the quarter amid an unfavorable mix and limited operating leverage.

Carysil Ltd.

Carysil Ltd is expected to post around 17% revenue growth YoY, driven by healthy performance across all segments — quartz sinks, steel sinks, and kitchen appliances — supported by higher capacity utilization, leading to operating leverage resulting in margin expansion. Additionally, growing acceptance of modular kitchen trend in domestic markets shall benefit Carysil. 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 14% YoY revenue growth, driven by sustained growth across the business segments. However, margins are likely to contract due to higher operating costs seen over the past quarter. 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 ~12% YoY revenue growth, led by strong traction in the offline channel, while online remains relatively subdued amid the rise of D2C brands and heightened discounting, which could keep margins marginally under pressure. With the Jaipur plant operating at ~85% utilization and the company progressing on backward integration of trolleys and wheels, we expect margins to improve over the near term.

Mrs Bectors’ Food

Mrs Bector’s is likely to report a muted quarter amid near-term tariff headwinds impacting ~18% of its export portfolio, with export revenues under pressure due to tariff uncertainty and geopolitical disruptions, particularly in the US. We estimate revenue growth of ~8% YoY, led by the bread segment, while margin expansion should remain constrained as weakness in high-margin exports offsets the early easing in input costs (benefits likely to materialize more meaningfully in the coming quarters).

Ethos Limited

We expect the company to deliver ~25% YoY revenue growth this quarter, driven by healthy SSG and continued store additions, reflecting strong underlying demand and improving scale. However, profitability is likely to remain muted despite the robust topline, as cross-currency headwinds, upfront store-opening costs (staffing, rentals, pre-operative spends) and accelerated depreciation on new stores are expected to weigh on margins in the near term.

Mayur Uniquoters

We expect the company to deliver ~10% revenue growth, primarily driven by strong momentum in the export OEM segment, which continues to anchor overall performance. The domestic business should see a gradual recovery, while benign raw material prices are likely to support margin expansion. While exports are expected to report healthy numbers this quarter, we await greater clarity on potential tariff actions by Mexico, which could pose a longer-term risk to export growth and margins.

Entero Healthcare

We expect the company to report ~28% YoY revenue growth, supported by a combination of organic momentum and the continued consolidation benefits of past acquisitions. While the pace of new acquisitions is likely to moderate, earlier deals should continue to aid topline growth and expand the scale of operations. We also expect margins to improve and hover around ~4%, which should support better operating cash flow generation.

Landmark cars

We expect the company to post ~12% YoY revenue growth, driven by new-car sales and low double-digit growth in after-sales, supported by improving traction in new workshops. Margins should improve during the quarter on the back of a higher after-sales mix and better performance at newly opened outlets as utilization ramps up.

Goldiam International

We expect the company to report ~2% YoY growth this quarter, largely due to a high base. While the B2B business could see some near-term impact from the current environment, we expect the B2C business to remain steady, with the company now operating 13 stores. That said, higher costs associated with scaling B2C operations could weigh on near-term profitability. We remain positive on the long-term outlook, supported by a stable B2B franchise and improving domestic traction for lab-grown jewellery.

Wonderla Holidays

We expect the company to deliver ~8.6% YoY revenue growth, driven by an improvement in non-ticketing ARPU. Mature parks should post stable growth, while newer parks are expected to contribute incremental upside. Margins are likely to remain broadly stable during the quarter.

Click to download the full Consumer Durables Sector Report 3QFY26 Company Update

Analyst:

• Rahul Dani - Research Analyst, Institutional Equities (NISM-201500034725)
• Vaidik Bafna- Research Associate, Institutional Equities (NISM-202100035711)

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FAQs on Consumer Durables sector report 3QFY26

Why is Q3FY26 expected to be a subdued quarter for consumer durables?

Growth momentum slowed in December after the initial impact of the GST rate cut faded. Dealer feedback and management commentary suggest demand normalization, especially in discretionary categories, leading to softer quarter-on-quarter growth.

How are US tariffs impacting consumer durables companies?

Export-oriented companies are facing higher input and compliance costs due to US tariffs. This has delayed margin recovery for several players, particularly those with higher overseas exposure.

Which consumer durables stocks are expected to perform relatively better in Q3FY26?

Carysil, Goldiam International and Borosil Limited are expected to show relative strength due to operating leverage, capacity ramp-ups, and improving brand traction, despite broader sectoral headwinds.

Are margins expected to improve in Q3FY26?

Overall margins are likely to remain under pressure due to unfavorable product mix, export cost inflation and limited operating leverage. Meaningful margin improvement is expected only over the next few quarters as volumes stabilize.

How is domestic demand shaping up versus exports?

Domestic demand remains steady but has moderated post-GST cut. Export demand continues to face challenges from tariff-related costs and geopolitical uncertainty, impacting near-term growth visibility.

What are the key risks investors should monitor in this sector?

Key risks include prolonged demand slowdown, further tariff escalation, labour code implementation impact, and margin pressure from rising operating costs during expansion phases.

What is the medium-term outlook for consumer durables stocks?

While Q3FY26 is likely to remain subdued, medium-term prospects remain constructive for companies with strong brands, scalable capacity, and pricing power, as demand normalizes and cost pressures ease.

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