Exclusive: Voltas MD Mukundan Menon on his Outlook for 2026

Voltas primarily operates in home appliances market with a sharp focus on Room AC category, so our commentary is limited to this industry. The year 2025 presented unique challenges in the Room Air Conditioning industry, marked by an early and prolonged monsoon, leading to industry de-growth compared to the previous year. However, the GST reduction on ACs from 28% to 18% effective September 22 provided a positive boost, driving recovery in the latter half of the fiscal year. The upcoming BEE star rating revision, effective Jan 1, 2026, is expected to further stimulate demand.

The Indian appliance industry in 2025 experienced strong growth. Demand was driven by rising incomes, urbanization, and rural electrification, alongside a clear trend toward premiumization and smart, energy-efficient appliances. Regulatory measures such as BIS standards and sustainability initiatives are influencing product design and manufacturing. The outlook remains positive, with double-digit growth expected, fuelled by innovation and AI integration.

2026 will be an inflection point for the industry. A supportive policy landscape with GST cuts and BEE rating change in January 2026 is expected to catalyse new purchases. Consumers are clearly shifting towards energy-efficient and smart appliances, with rising focus on sustainability, compliance, and long-term savings. With normalised inventory and the likelihood of a stronger summer, we expect a broad-based recovery with healthier, more predictable demand.

The tailwinds outweigh the risks as we enter 2026. Policy support, rising aspirations in Tier 2 to Tier 4 markets, increasing manufacturing footprint, and strengthening consumer sentiment create a highly favourable demand environment. With broader channel pipelines and the upcoming summer cycle, the industry is poised for renewed growth.