The unexpected monsoon during the period of May-June has downgraded the growth prospects of multiple companies that count on peak summer season sales to generate revenues. In this article, we will look at companies that may report a weak Q1 FY26 driven by unexpected weather changes.
Jefferies notes that unseasonal rains in May-June will mean a 15-20 percent YoY decline in room air conditioner (RAC) sales. Jefferies estimated that unitary cooling product (UCP) sales dropped in the low double digits as leading players, such as Blue Star and Voltas, led the industry in cooling appliances.
Nuvama pointed out that, due to cooler-than-normal weather in the RAC segment, they saw a decline in volumes of 20-25 percent YoY in April and May 2025, due to the cooler-than-normal weather significantly reducing sales.
As a result, Jefferies, Nuvama, and other brokerages reported weaknesses in YoY revenue growth and margin expectations from lower volumes and potential inventory overhang as a concern going forward.
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An unanticipated monsoon in May-June could impact Varun Beverages’ sales negatively, as unseasonal rains typically reduce the demand for cold beverages in a period of typically peak summer sales.
Cooler weather and rain reduce thirst and footfall at retail, resulting in reduced uptake, especially for impulse and on-the-go drinking. This could lead to lower volume growth and margin pressure in Q1.
Likewise, many manufacturers and companies like Epack Durables, Amber Enterprises, Havells, Polycab, Crompton, etc, will also surely suffer as a consequence of the unseasonal rains.
These companies are either manufacturers or component suppliers in the cooling products and downstream consumer electronics segment that, at a minimum, can expect to see sluggish demand, lower secondary sales, and perhaps inventory buildup.
A cool and unseasonable cost to the consumer has shortened the effective summer season with poor retail offtake and postponed channel restocking, resulting in impacted volumes and operating leverage across the value chain.
Written by Satyajeet Mukherjee
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