Whirlpool India Q1 Profit Falls 29.4% to ₹103 Crore

Whirlpool of India reported a 29.4 percent fall in consolidated net profit for the June quarter of FY27, with net profit declining to ₹103 crore from ₹146 crore in the same quarter of the previous financial year.

The company's revenue from operations increased 12 percent year-on-year to ₹2,727 crore from ₹2,432 crore. However, the rise in sales failed to support profit due to higher costs.

Earnings before interest, tax, depreciation, and amortization (EBITDA) dropped 34 percent to ₹140 crore from ₹211 crore a year earlier. The EBITDA margin narrowed sharply to 5 percent from 8.7 percent in Q1 FY26.

Total expenses rose to ₹2,656.9 crore during the June quarter from ₹2,289.9 crore a year ago. The cost of raw materials and components climbed to ₹1,427 crore from ₹1,187.3 crore, while employee benefit expenses increased to ₹242.9 crore from ₹221.1 crore.

Other expenses rose to ₹439.3 crore from ₹380.7 crore, and depreciation and amortization costs edged up to ₹54.5 crore from ₹53.6 crore. Finance costs stood at ₹14.8 crore.

Total comprehensive income was ₹103.8 crore during the quarter, down from ₹146.6 crore in the year-ago period. Whirlpool of India operates under a single reportable business segment, Home Appliances, and its consolidated results include the performance of its wholly-owned subsidiary, Whirlpool of India Kitchen Appliances Private Limited.

Following the results, Whirlpool India shares fell nearly 5 percent in early trading but later recovered part of its losses, ending 1.4 percent lower at ₹809 on Wednesday. Investors reacted to the sharp fall in profit and weaker operating margins.

The decline in profit and margins is a concern for the company, which has been facing increasing competition in the home appliances market. Despite the revenue growth, the higher costs have squeezed the company's margins, affecting its profitability.

The home appliances market in India is highly competitive, with several players competing for market share. Whirlpool of India has been trying to maintain its market share through various strategies, including product innovation and marketing campaigns.

However, the company needs to focus on reducing its costs and improving its operational efficiency to maintain its profitability in the long term. The company's performance in the upcoming quarters will be crucial in determining its future growth prospects.

The decline in Whirlpool India's profit and margins is a significant development in the home appliances industry, and it will be interesting to see how the company responds to the challenges it is facing. The company's ability to reduce its costs and improve its operational efficiency will be key to its future success.