💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 16% YoY for the nine-month period ended December 31, 2024, and 17% for the April-December period. Growth was primarily driven by market share gains in the refrigerator and washer segments, alongside accelerated growth in the air conditioner business and premium product portfolios.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates primarily in the Indian market with support from its Mauritius-based holding company and US-based parent.

Profitability Margins

Operating profit margin improved significantly to 3.86% in FY 2024-25 from 1.99% in FY 2023-24. Net profit margin increased to 4.22% from 2.64% YoY. The improvement was driven by a 220 bps gross margin expansion through the P4G cost-takeout program and premiumization.

EBITDA Margin

While specific EBITDA % is not explicitly stated, Profit Before Tax (PBT) grew by over 100% YoY with a PBT margin improvement of 210 bps. The subsidiary Elica PB Whirlpool maintained a robust PBT margin of 15.7%.

Capital Expenditure

The company generates healthy annual cash accruals of over INR 400 Cr, which is utilized to fund ongoing capital expenditure and incremental working capital requirements without the need for term debt.

Credit Rating & Borrowing

Whirlpool of India maintains a strong credit profile with nil term debt. However, the parent company (Whirlpool Corporation) was downgraded by S&P Global to 'BB+/Stable' from 'BBB-/Negative' due to leverage exceeding 4x-5x through 2025-2026.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, plastic, and copper. These materials are subject to high volatility, which historically impacted margins from pre-pandemic levels of 11-12% down to current levels.

Capacity Expansion

Current capacity is not specified in units, but the company is expanding its premium portfolio, including the launch of the XpertCare Front Load washing machine range and the AceXL washer range with Dynamix Detergent Dispensers.

Raw Material Costs

Material costs were reduced by 1% YoY through cost productivity actions, despite absorbing an additional INR 41 Cr in regulatory costs related to new E-Waste regulations.

Manufacturing Efficiency

Efficiency is driven by the cost productivity program yielding substantial benefits across the P&L and a focus on 'executional excellence' in retail presence.

📈 Strategic Growth

Expected Growth Rate

16%

Growth Strategy

Growth is targeted through market share gains in core categories (Ref/Washers), premiumization of the product mix, and expansion in the Air Conditioner segment. The company is also leveraging its 96.81% stake in Elica PB Whirlpool to grow the kitchen appliances business.

Products & Services

Refrigerators, washing machines (Semi-Automatic and Front Load), air conditioners, microwave ovens, deep freezers, and kitchen appliances (hoods, hobs, and chimneys).

Brand Portfolio

Whirlpool, Elica, Kelvinator (historical), XpertCare, AceXL.

New Products/Services

Recent launches include the XpertCare Front Load washing machine range and the AceXL range featuring the Dynamix Detergent Dispenser to address consumer pain points regarding detergent patches.

Market Expansion

The company is focusing on gaining triple-digit bps market share in refrigerators and washers while expanding its presence in the premium segment and air conditioners.

Market Share & Ranking

The company holds a strong market position in refrigerators and washing machines, recently achieving triple-digit basis point gains in market share for both categories.

Strategic Alliances

Whirlpool Corporation is reducing its stake from 51% to approximately 20% by late 2025. A long-term brand and technology agreement is being established to ensure business continuity post-sell-down.

🌍 External Factors

Industry Trends

The industry is seeing muted growth (low-to-mid single digits) in refrigerators and washers, but Whirlpool is outperforming through premiumization and market share gains. There is a significant shift toward energy-efficient and regulatory-compliant (E-Waste) products.

Competitive Landscape

Intense competition in the consumer durables segment limits the company's ability to fully pass on raw material price increases, keeping margins under pressure.

Competitive Moat

The moat is built on a strong brand reputation, an established distribution network, and technical support from Whirlpool Corp. Sustainability depends on the long-term brand and tech licensing agreements following the parent's ownership reduction.

Macro Economic Sensitivity

Highly sensitive to consumer spending trends and inflation in raw material prices (steel, copper, plastic), which can impact the ability to pass on costs to consumers.

Consumer Behavior

Shift toward premium products and demand for specific features like 'zero detergent patches' in washers and better cooling in refrigerators.

Geopolitical Risks

The parent company's debt reduction strategy involves selling down its Indian stake to approximately 20% to manage its global leverage, which is projected to remain over 5x in 2025.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by E-Waste management rules and energy efficiency norms for appliances. The company utilizes a Product Organisation to track and implement proactive, cost-efficient adaptations to these changes.

Environmental Compliance

The company absorbed INR 41 Cr in costs due to new E-Waste regulations in FY 2024-25.

Legal Contingencies

The company engaged AZB & Partners to assist with the transition following the parent's sell-down announcement. Specific litigation values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of Whirlpool Corporation reducing its stake to 20%, which may affect 'visibility on new product developments' and the cost of brand/technology royalties.

Geographic Concentration Risk

Revenue is heavily concentrated in the Indian market, making it susceptible to local economic cycles and seasonal demand (summer/festivals).

Third Party Dependencies

High dependency on Whirlpool Corporation for technical know-how, engineering assistance, and the innovation pipeline.

Technology Obsolescence Risk

The company mitigates technology risk through continuous R&D and technical support from its global parent to maintain a competitive innovation pipeline.

Credit & Counterparty Risk

Receivables quality is stable, with the debtor turnover ratio improving to 19.83, indicating efficient collections from trade partners.