Earnings Outlook
Early monsoon to hit Whirlpool Q1 revenue, PAT
This story was originally published at 21:28 IST on 25 July 2025
Register to read our real-time news.Informist, Friday, Jul. 25, 2025
By Rizwan Ali
MUMBAI – Whirlpool of India Ltd. is expected to post a decline in its growth in net profit and muted growth in net sales on year for the June quarter. Both the net profit and the revenue of the company are expected to clock the lowest on-year growth in the last six quarters. The early onset of the monsoon disrupted the summer, which hit demand for cooling products such as refrigerators and air-conditioners. The company's net sales for the June quarter are likely to rise only marginally on year, according to the brokerages tracking the company.
Whirlpool is expected to post a net profit of INR 1.3 billion for the June quarter, down 6% on year but up 13% on quarter, according to the average of estimates from five brokerages. The highest estimate for the net profit is INR 1.4 billion by YES Securities Institutional equities and the lowest is INR 1.1 billion by Nirmal Bang Institutional Equities.
The company is expected to post revenues of INR 24 billion, up marginally on year and up 27% sequentially, according to this average. The highest estimate for revenue is INR 25.75 billion by Kotak Institutional Equities and the lowest estimate is INR 23 billion by Nirmal Bang and Centrum Broking.
The company's gross margin for the June quarter is estimated at 31.6%, down 50 bps on year and 305 bps on quarter, Kotak said. The gross margin contraction of 50 bps is lower than the 100 bps contraction in the year-ago quarter. The lower contraction in gross margin is due to lower mix of low-margin air conditioners sold by the company.
The company's earnings before interest, tax, depreciation, and amortisation are estimated at INR 1.9 billion in the June quarter, down 3% on year. The highest EBITDA estimate of INR 2.13 billion is from YES Securities and the lowest estimate of INR 1.68 billion is from Nirmal Bang. The company's EBITDA margin is estimated at 7.3%, down 110 bps on year, negatively affected by the contraction in gross margin, adverse operating leverage, and higher cost of e-wastes.
Of the five brokerage reports on the stock available with Informist, two have a ‘buy' recommendation with an average target price of INR 1,497 while another two have a 'hold' rating with an average target price of INR 1,340. One brokerage has a 'sell' rating on the stock with a target price of INR 980.
Shares of the Whirlpool ended at INR 1,399 Friday on the National Stock Exchange, down almost 1%. The shares are up 10.5% from May 21, when the company had announced its March quarter earnings. The shares are trading almost 50% down from the all-time high of INR 2,787.
Following are the Apr-Jun earnings estimates for Whirlpool of India Ltd. based on reports from five brokerages in the descending order of estimates of the net profit:
Brokerage Firms | Net Sales (INR in million) | Net Profit (INR in million) | EBITDA (INR in million) |
YES Securities (India) Ltd | 23,209.00 | 1,411.00 | 2,135.00 |
Nuvama Wealth Management Ltd | 25,502.00 | 1,322.00 | 1,880.00 |
Centrum Broking Ltd | 22,971.00 | 1,222.00 | 1,764.00 |
Kotak Institutional Equities | 25,755.00 | 1,206.00 | 1,905.00 |
Nirmal Bang Equities Pvt Ltd | 22,971.00 | 1,136.00 | 1,684.00 |
Average |
24,081.60 |
1,259.40 |
1,873.60 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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