Sudden weather shift caused manufacturers and retailers to face excess inventory and weaker than expected sales across categories such as ACS, refrigerators and drinks.
Industry management claims that total revenues in April and May dropped by 10-15% year -on -year and reversed optimism in the early season powered by a harsh summer. With the Indian Meteorological Department (IMD), which now predicts wetter June, companies recalibrate expectations for the first half of FY26.
“This year, the summer season kicked soon and we witnessed an increase in the volume of AC sales in February, March and April. However, this dynamics was later suppressed because of early showers,” said Kamal Nandi, Head of Business and Executive Vice President of Godrej Enterprises Group.
For industry, southern, eastern and western regions, they reported a 20-25% decline in sales, which could be the impact of intermittent rains in the first half of May, he said.
“However, our data on AC installation suggests that demand is improving and in May 15-20%in May in May.
Lower temperatures reduced the use of cooling devices such as air -conditioners, informed Mint last month. In fact, unbelievable rains and storms in May maintained low and reduced electricity use by 2%year -on -year.
Sure, summer sales represent most of shopping for cooling devices such as air conditioning, fans and coolers.
However, constant precipitation plays sport.
IMD adds concerns about industry
Last week, IMD was expected to be above normal nationwide precipitation on June 2025. Although most regions are expected to be normal for normal rainfall, some areas, namely parts of the southern peninsula, northwest and northeast India, are likely to experience under normal precipitation.
In terms of temperatures, IMD predicts normal up to normal maximum temperatures throughout India in June. However, many parts of the northwest and northeast India will be above normal maximum temperatures. It is believed that the minimum temperatures will remain above normal throughout the country. Exceptions include some areas of the Central India and the neighboring Southern Peninsula, where they are expected to be normal below normal minimum temperatures.
It is worth noting that the April IMD forecast predicted above normal temperatures and more daily waves for this summer. As a result, retailers supplied supplies.
“It was a summer or wet summer for air-conditioners. This season will be 25%in value compared to the previous year.
Last year, this industry reported 70% jump in air conditioning during the top summer season, he said.
“We expected this summer season at least 25% jump in sale after the IMD forecast for a strong summer … We were prepared with strong supplies and huge growth at the beginning of the year. In March, sellers raised much more than we expected.
Companies are now attaching hopes for the festive season in the second half of the year to liquidate excess stocks.
“Despite the current challenges, there is confidence in achieving 10% growth by the end of the year. The retailers are expected to hold unnecessary stocks until the festive season,” he added.
The retailers, on the other hand, said that the demand for refrigeration products fell by 30-35% on the relatively high base of last year.
“Not only early monsoons, ascending precipitation also influenced business. The refrigerator shop was similar to last year. It was a very bad summer,” said Niles Gupta, CEO of Vijay Sales.
Gupta, however, said that in the next 2-3 months or by October, shares in air conditioning will be liquidated.
Read also: Mint Primer: Will Summer ’25 last year’s records?
Out of appliances
Certainly, last year’s high growth (40–60%) in summer products due to the nationwide thermal wave created a high base, which this year affected growth rate.
“When predicting a stronger summer season, many companies and retailers have supplied an unnecessary inventory until March, leading to large unsold events. India experiences unusual weather in May with frequent thunderstorms and rain,” said Nuvama in institutional shares on Monday.
“The typical temperature in Northwest India, which is necessary for the development of monsoons, is currently weak. IMD predicts the early onset of monsoon in the regions of Kerala and Southwest areas. Company reduce summer products such as AC, drinks, and talcum powders by up to 25% due to weak sales and excessive. “It is said in premature weather.
It is expected to have an impact on summer sales in the first half of FY26.
During the gainful call of Emami Ltd. On May 19, Mohan Goenka, vice -chairman and director of the whole time, stated that the June quarter proved to be “demanding” for the portfolio of the company’s summer products, which includes cooling hair oils and dust dust.
“We saw steep growth in the quarter of March, so the primars occurred. Unfortunately, the southern markets and some parts of the east and the West did not do so well … We see sporadic precipitation throughout India … So the summer saw a slight pron.
Also read: Farmers strengthen summer sowing before a promising monsoon season
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