India’s consumer durables market is expanding rapidly, with industry bodies and market analysts projecting robust double-digit growth in the near term.
The sector is poised to potentially become one of the world’s largest markets in the coming years. This is underpinned by rising household penetration of air conditioners, refrigerators, washing machines, and premium small appliances.
Durable financing mechanisms (fintech-based and traditional consumer credit) are expanding access to expensive appliances, accelerating penetration in both urban and rising rural areas.
In this editorial, we compare 3 consumer durable stocks based on their business models, financials, and operational strength to understand each.
It’s important to note that an exact peer to peer comparison may not be possible, given that some of them are more diversified than others.
However, all of them are in the consumer durables space.
Let’s now take a look at each…
Business Overview
LG Electronics India
LG Electronics India is the Indian subsidiary of LG Electronics South Korea, a leading global consumer electronics and home appliances company.
In India, the company produces a broad range of products across categories such as refrigerators, washing machines, televisions, air conditioners, and small appliances.
It’s focus is on offline and organised retail channels and a growing emphasis on premium and smart-product segments. It has a leading market share across some major categories.
The company had a blockbuster IPO in October 2025, with a very successful listing.
Competitive advantages
LG Electronics India has a premium image across some categories (refrigerators, OLED TVs, inverter ACs, washing machines), which supports profitability and pricing power relative to many peers.
This apart, LG Electronics India has a vast and well-managed distribution network—brand shops, large retail chains, and strong e-commerce partnerships. This enables broad reach across tier-1 to tier-3 cities, ensuring product availability and after-sales support at scale.
A bulk of LG Electronics India’s raw material needs are met domestically, improving cost structure and supply chain resilience. This localisation also ensures rapid response to changing consumer needs and regulatory policies.
Growth plans
The company is proceeding with additional manufacturing capacity to support growing domestic demand and LG’s broader India-centric growth strategy. LG Electronics India is setting up its new manufacturing plant in Sri City, Andhra Pradesh.
The new Sri City plant is designed to augment overall production capacity for major appliances, enabling LG Electronics India to scale volumes across refrigerators, washing machines, air conditioners, and related components.
This aligns with a push to localise more manufacturing and reduce lead times for Indian consumers.
The expansion is consistent with the parent company’s strategy to push premium and technologically differentiated products in India, leveraging localised production to support feature-rich, energy-efficient offerings at scale.
Havells India
Havells India operates under multiple brands, primarily Havells and Lloyd, with Crabtree and Standard Electric as additional sub-brands.
Lloyd covers consumer durables such as air conditioners, televisions, washing machines, and refrigerators, while Havells targets fans, lighting, wiring accessories, switches, water heaters, and other electrical consumer products.
This diversified brand mix enables Havells India to participate across entry-level to premium segments in the home appliances and energy-efficient solutions space.
The company is a recognised leader in the Indian electrical goods sector, with top market positions in several key categories within the fast-moving electrical goods space.
Competitive advantages
A multi-brand strategy (Havells, Lloyd, Crabtree, Standard Electricals, REO, and Havells Studio) allows targeting across price points and consumer segments, reducing channel risk and enhancing reach. It supports cross-selling opportunities and improves penetration in both urban and rural markets.
Havells India has a pan-India distribution footprint with exclusive brand showrooms and a large, capable service ecosystem. This network strengthens after-sales experience and repeat purchases, contributing to higher customer loyalty and brand equity.
Growth plans
Havells India’s growth plans and expansion focus around expanding manufacturing capacity, geographic reach, and product portfolio to capture rising demand in both rural and urban segments, while targeting international growth via strategic partnerships.
Key areas include Alwar plant capacity expansion for cables, land acquisitions adjacent to existing facilities, and ongoing capex to accelerate production across lighting, fans, refrigerators, and other electrical equipment.
The company enters FY26 with optimism as recent policy measures by the government, including income tax rate reductions and monetary policy easing, are expected to support consumer sentiment and discretionary spending.
While infrastructure and industrial investment driven demand continues to remain strong, Havells India also expects the demand from past real estate launches to gradually percolate through the ecosystem, supporting growth in associated categories.
Voltas
Voltas Ltd is a leading Indian engineering and consumer durables company, best known as India’s largest air conditioning (AC) manufacturer and a premier provider of engineering solutions across multiple sectors.
Voltas operates in two main segments:
- Unitary Products (air conditioners, air coolers, commercial refrigeration equipment, water coolers, etc.) and consumer appliances.
- Electro-mechanical projects and engineering services (EPC) with domestic and international execution.
Competitive advantages
As a Tata Group company, Voltas benefits from strong credibility, stability, and cross-sell opportunities across the group’s ecosystem, which enhances customer confidence and procurement pipelines in both domestic and international markets.
Voltas has maintained a leading share in the Indian room air-conditioner segment for multiple years, driven by a deep understanding of local climate conditions, reliable product performance, and extensive after-sales networks.
The unitary cooling products business combined with a strong engineering and services arm enables Voltas to offer integrated solutions from product sales to project execution and after-sales support.
This creates stickiness with commercial and institutional customers. This dual capability differentiates Voltas from pure-play appliance brands.
Growth plans
The company is looking at deepening penetration in India’s air conditioning and home appliance markets through Voltas Beko offerings, product portfolio expansion (including washing machines and refrigerators), and enhanced distribution across modern trade and e-commerce.
This aligns with recent quarterly updates showing volume growth in the Beko-powered segments and steady leadership in unitary cooling products.
The company will also enhance domestic manufacturing capacity to improve self-sufficiency, reduce import dependency, and create more localised value chains across Voltas’ product and engineering businesses.
Voltas is a prominent EPC (engineering, procurement, and construction) and HVAC provider with a strong track record in international project execution, especially across the Middle East and GCC countries.
The company is now looking to expand international project opportunities and exploring new partnerships to broaden the geographic footprint, while leveraging the Tata ecosystem for credibility and project pipelines.
LG Electronics India vs Havells India vs Voltas Financials
Revenue Highlights
| Revenues (Rs m) | FY24 | FY25 |
| LG Electronics India | 2,13,520 | 2,43,660 |
| Havells India | 185,900 | 217,781 |
| Voltas India | 124,812 | 154,128 |
In terms of revenue, all three companies saw good growth in FY25.
LG Electronics India reported a 14% increase in revenue, while the revenue increase in the case of Havells India was slightly better at 17%. Voltas’ revenue growth was the best at around 24%. The solid growth in revenues centered around core products.
Overall, all three companies reported good growth in revenues for FY25.
Net Profit Highlights
| Net Profits (Rs m) | FY24 | FY25 |
| LG Electronics India | 15,110 | 22,030 |
| Havells India | 12,708 | 14,702 |
| Voltas India | 2,481 | 8,343 |
LG Electronics India ended FY25 with a good growth in net profits of nearly 46% YoY. On the other hand, Havells India reported a net profit growth of nearly 15% in FY25 YoY.
Voltas topped the net profits growth chart, with FY25 net profits surging a whopping 246%. However, the net profits in the case of Voltas have been inconsistent over the years.
In terms of absolute net profit numbers, LG Electronics India is ahead.
The recent Q1 FY26 numbers showed a dip in net profits for both Voltas and Havells India when compared on a year-on-year basis.
Risks of Investing in consumer durable stocks
The risks associated with investing in consumer durable stocks are the industry’s natural cyclicality, pressures on input costs, competition, and outside variables.
Here are a few things to consider before investing in consumer durable stocks…
- Economic cyclicality: Consumer durable stocks are susceptible to changes in the economy. The demand for durable goods usually decreases during slowdowns or inflationary times, which raises investor volatility and loss risk.
- Input cost fluctuations: Due to their reliance on key inputs, expanding prices for raw materials like steel, plastics, copper, and semiconductors can reduce the profit margins of businesses in this industry.
- Intense competition: The industry is subject to fierce rivalry from both domestic and foreign brands, which results in price wars and pressure on margins, making it difficult to maintain market share.
- Regulatory and currency Risks: Currency depreciation or import taxes may have an impact on profitability for businesses that depend on imports for parts or completed goods.
- Supply chain disruptions: Natural disasters, logistical problems, or geopolitical tensions can all cause supply chains to break down, leading to delays or higher expenses.
- Valuation risks: Despite corrections, a large number of consumer durable stocks are trading at high price-to-earnings multiples relative to their historical averages. This suggests a narrow margin of safety and increased risk of declines in the event that growth slows.
- Margin pressure from market share battles: For short-term profitability, incumbents are forced to reduce prices and compress margins.
Which consumer durable stock is best?
LG Electronics India, Havells India, and Voltas deliver unique value propositions, leveraging varied strategies and distinct market positioning.
For example, the engineering projects & services is a significant revenue and margin driver for Voltas but is not a segment Havells India or LG Electronics India operate in.
On the other hand, Havells India manufactures and markets a wide range of modular switches and wiring devices, a core electrical infrastructure category not covered by LG Electronics India or Voltas.
In short, Investing successfully in these stock demands a thorough assessment of a company’s product range, execution abilities, financial stability, and risk management strategies.
It also involves considering factors such as reliance on policies, supply chain weaknesses, and fierce competition within this fast-changing industry.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions. Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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