Whirlpool of India Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Whirlpool India delivered a resilient Q3 FY26, characterized by significant EBITDA margin expansion and market share gains in washing machines and ACs, despite sluggish demand in the refrigerator segment. The company is navigating a major corporate transition following the parent company's stake reduction, securing long-term brand and technology access. Management is focusing on 'decommoditizing' core categories through premiumization and innovation to counter intense competitive pricing.

Highlights

  • Standalone Revenue of ₹1,624 crores, up 3.2% YoY despite a weak industry environment.

  • Standalone EBITDA grew 47% YoY to ₹65 crores, with margins expanding 120bps to 4.0%.

  • Consolidated Revenue reached ₹1,774 crores, up 4% YoY, aided by high-single-digit growth in Elica.

  • Gross Margin improved to 30.8% for the 9-month period, up from 30.3% in the previous year.

  • Air Conditioner business saw significant scaling, growing over 50% in Calendar Year 2025.

  • Reported PBT was impacted by a one-time wage code provision of ₹33.4 crores (standalone) and ₹38.8 crores (consolidated).

  • Secured 30-year exclusive Brand License and 10-year Technology License agreements with Whirlpool Corporation.

  • Negative net working capital maintained for four out of the last six quarters.

Concerns

  • Regulatory Cost Inflation (BEE Ratings)

  • Intense Competitive Pricing

Key financials

2 periods

Headline

  • Revenue (Standalone)
    ₹1,624 Cr
    YoY +3.2%
  • EBITDA (Standalone)
    ₹65 Cr
    YoY +47%
  • EBITDA Margin (Standalone)
    4%
  • PBT before Exceptional (Standalone)
    ₹48 Cr
    YoY +32%
  • Revenue (Consolidated)
    ₹1,774 Cr
    YoY +4%

9M FY26

  • Gross Margin
    30.8%

What they filed

Q1 FY27: revenue up 11.4%, net profit down 34.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,582 1,565 1,890 2,317 1,502 −5%1,624 +4%2,030 +7%2,582 +11%
EBITDA68 44 169 195 36 −47%65 +48%100 −41%120 −38%
Net profit42 27 111 135 27 −36%13 −52%67 −40%89 −34%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Elica Business
    8% Revenue Growth10% Margin Profile

Guidance & targets

Revenue

  • Revenue CAGR Revenue · Next 5 years · Medium confidence Early double-digit

    Previously High single-digit → Early double-digit

    If the market were to grow slightly ahead of GDP, then I do not see why the high single-digit cannot become an early double-digit kind of growth number over a five-year period.

    — Narasimhan Eswar, Managing Director

  • Elica Revenue Growth Revenue · FY27 · Medium confidence Strong double-digit

    Previously 5-8% → Strong double-digit

    There has to be some investment to happen to get it going from a 5%, 6%, 7%, 8% revenue growth to a very strong double-digit revenue growth.

    — Narasimhan Eswar, Managing Director

Other

  • Transitional Service Agreement (TSA) Duration Other · by 2029 · High confidence March 2029
    we have worked out with Whirlpool Corporation written agreement that this will continue for us till March 2029.

    — Narasimhan Eswar, Managing Director

  • Brand License Agreement Duration Other · Next 30 years · High confidence 30 years
    We have exclusive rights to use the Whirlpool brand in our territory for 30-years.

    — Narasimhan Eswar, Managing Director

Risks & concerns

  • Regulatory Cost Inflation (BEE Ratings)

    high

    New energy ratings for refrigerators and ACs in 2026 will impact 50-70% of the portfolio, increasing engineering and component costs.

    Both acknowledged

  • Intense Competitive Pricing

    high

    Unseen levels of price reductions by competitors and new entrants are forcing tactical pricing responses, particularly in the Direct Cool segment.

    Both acknowledged

  • Transition Financial Impacts

    medium

    The shift to a non-majority owned entity in 2026-2027 will involve one-time transition costs and system modifications.

    Management acknowledged

Areas of evasion (3)

  • Parent company's future divestment plans
  • Specific pricing impact of BEE energy rating changes
  • Quantification of transition costs for FY27

Q&A highlights

0 direct, 2 evasive
Parent Stake Divestment Timeline Evasive
What the corporation will do or will not do is something that I cannot speak on at all... we are not privy to any information more than what you are privy to.

Investors are concerned about the overhang of the remaining 40% stake held by Whirlpool Corporation and the potential for further market sales.

Asked by Ankit Merchant, Kotak Securities

Margin Expansion Outlook for FY27 Partial
Directionally, it is an unusual year, that is all... given so many variables -- pricing, regulatory, market, P4G cost programs – it is difficult for me to say this will be the profit.

Management is signaling that FY27 will be a 'year of transition' with significant regulatory (BEE) and structural headwinds that may limit margin expansion.

Asked by Dhruv Jain, Ambit Capital

BEE Energy Rating Pricing Impact Evasive
On the BEE pricing, I am afraid we are not declaring that at all... that is highly confidential information, which would actually be inimical to our interests to share in the public domain.

The cost of compliance with new energy ratings is a major sector-wide risk, and Whirlpool's refusal to quantify the pricing offset suggests potential margin pressure.

Asked by Priyank, Vallum Capital

2 min read 5 chapters

Detailed narrative

Securing Long-Term Strategic Independence

Whirlpool India has finalized critical long-term agreements with Whirlpool Corporation to ensure business continuity following the parent's stake reduction to 40%. This includes a 30-year exclusive Brand License Agreement with competitive royalty rates and a 10-year Technology License Agreement providing access to global R&D for major domestic appliances. Additionally, a Transitional Service Agreement (TSA) has been secured until March 2029, providing a 3.5-year window to modify internal systems and ensure operational stability.

Margin Expansion via P4G Productivity

The company's 'P4G' cost takeout program remains a central pillar of its financial strategy, driving a 320bps improvement in standalone gross margins from FY23 to 9M FY26. In Q3 FY26, standalone EBITDA margins expanded by 120bps to 4%, fueled by these productivity initiatives which helped offset competitive pricing pressures. Management intends to continue reinvesting these margin gains into high-ROI marketing and product leadership initiatives.

Scaling High-Growth Categories

While core refrigerator markets remained weak, Whirlpool saw significant traction in newer categories. The Air Conditioner business grew by over 50% in CY2025, and front-load washing machine volumes increased by approximately 50% YoY, albeit on a smaller base. The company is also targeting aggressive growth for the Elica brand, aiming to transition it from high-single-digit growth to strong double-digit revenue growth through increased investment, even if it requires a temporary trade-off in PBT margins.

Decommoditization Strategy in Core Segments

To combat intense competition in the Direct Cool (DC) refrigerator and semi-automatic (SA) washer segments, Whirlpool is focusing on 'decommoditization.' This includes launching premium glass-door designs for DC refrigerators, which are often placed in Indian living rooms, and introducing 'Dynamics Technology' in SA washers to eliminate detergent patches. By solving specific consumer pain points like manual defrosting through 'Auto Defrost' (ADF) technology, the company aims to maintain its top-two market position without engaging solely in price wars.

Navigating Regulatory and Transition Headwinds

Management cautioned that Calendar Year 2026 and Fiscal Year 2027 will be structurally challenging due to a convergence of factors. Significant regulatory changes in BEE energy ratings for refrigerators and ACs will impact a majority of the product portfolio, necessitating engineering changes and potential pricing adjustments. Simultaneously, the company will incur costs related to its transition into a more independent entity, making FY27 a pivotal but potentially volatile year for profitability.

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