Whirlpool of India reported Q3 standalone revenue growth of 4% driven by market share gains in washers and strong AC segment performance. Management detailed the signing of long-term agreements securing the Brand License Agreement (BLA) for 30 years and technology access for major domestic appliances. The company achieved EBITDA growth of 47% year-over-year, aided by P4G cost productivity, leading to a 30-plus gross margin.
Q3 FY26 Business Highlights
Whirlpool of India presented its results for the 3rd Quarter of Financial Year 2025-26. On a standalone basis, revenue grew by 4% against a weak industry backdrop, attributed to performance in refrigerators and air conditioners. The company achieved significant profitability milestones, with EBITDA growing by 47% versus last year and profit before tax (PBT) before exceptional items growing by 32%.
A key focus was operational efficiency, where the P4G cost takeout program resulted in a 30-plus gross margin delivery. Operationally, the company reported being at a negative net working capital this quarter, marking the fourth time in the last six quarters.
Securing the Future: Long-Term Contracts
Management highlighted securing the future of the business through major transaction agreements with Whirlpool Corporation, effective from October 16, 2025. These comprise three parts:
- Brand License Agreement (BLA): Grants exclusive rights to use the Whirlpool brand for 30 years, with options to renew for 10 years thereafter.
- Technological License Agreement: Guarantees access to current and future technology for major domestic appliances for 10 years, with flexible category-by-category renewal options thereafter.
- Transitional Service Agreement (TSA): Extended until March 2029, providing adequate time for system adjustments.
Segment Performance and Share Gains
The company maintained market share despite intense pricing competition. While Direct Cool refrigerators faced challenges, leadership noted triple-digit basis point growth in front-load washers and strong double-digit growth in low-frost and semi-automatic washers (upwards of 40-50 basis points).
The AC business saw greater than 50% growth in calendar year 2025 as the company scales up in this smaller category. The Elica brand continues to drive premiumization in the kitchen space.
Strategic Imperatives and Outlook
The core strategy revolves around product leadership and execution across key categories: refrigerators and washing machines, aiming for market leadership in the long run (3-9 years).
Management expects modest share growth in DC and semi-automatic categories due to intense commoditization, focusing efforts on decommoditizing these segments through unique offerings like glass-door aesthetics and Auto Defrost (ADF).
Consolidated Results and Outlook
On a consolidated basis (including Elica), revenue was Rs.1,774 crores (4% growth). EBITDA reached Rs.91 crores (5% margin) with a 31% growth. PBT before exceptional items grew by 21%.
Regarding future profitability, management noted that FY 2026-27 will be structurally challenging due to the transition costs associated with the new ownership structure and the simultaneous impact of major BEE energy rating changes in refrigerators and ACs in 2026. Future capital allocation decisions, including dividends or buybacks, are currently under review by the board.
Q&A Insights
In response to shareholder queries, management confirmed that all future ESOP plans for top leadership will be performance-based and solely linked to India performance, independent of the former parent corporation. Furthermore, it was committed that quarterly investor calls will be conducted going forward.
Source: BSE
