Whirlpool India Shares Rise 3% Despite 40% Drop in Q2 Profit

Shares of Whirlpool of India surged roughly 3 percent during intraday trading on Wednesday despite the company reporting a significant decline in its quarterly profits. The consumer durables manufacturer revealed a 40 percent year-on-year reduction in net profit for the second quarter of fiscal year 2027.

The stock initially dropped 3 percent to an intraday low of ₹812.10 on the National Stock Exchange but quickly rebounded, reaching a peak of ₹865.95 later in the session. By 12:10 PM, the share price moderated but remained positive, trading at ₹849.75, a gain of 1.5 percent. This marked the fourth straight session of gains for Whirlpool India, with shares climbing nearly 5 percent over this period.

According to a filing submitted to the stock exchanges, Whirlpool India’s consolidated net profit for the July-September quarter stood at ₹25.08 crore, down from ₹41.80 crore in the same quarter last year. The drop was primarily attributed to rising commodity costs, which were intensified by geopolitical tensions, surging crude oil prices, and the depreciation of the Indian rupee.

On the revenue front, the company reported an increase of 13.7 percent to ₹1,873.12 crore compared to ₹1,647.27 crore in the previous year’s quarter. This growth was driven by higher industry volumes, strategic pricing adjustments, and an ongoing shift in its product portfolio towards premium offerings.

Despite the revenue growth, Whirlpool India’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) fell sharply by 31 percent year-on-year to ₹39.9 crore. The EBITDA margin contracted to 2.1 percent from 3.5 percent a year earlier, reflecting the pressure on profitability.

Following these results, ICICI Securities highlighted that while Whirlpool’s top-line recovery remained intact, persistent inflationary pressures continued to squeeze margins. The brokerage pointed out that elevated commodity prices, the weakening rupee, and costs related to transitioning under the Bureau of Energy Efficiency (BEE) norms contributed to the margin erosion.

ICICI Securities also observed that price hikes implemented during the quarter were insufficient to fully counterbalance the inflation impact, further affecting profitability. To address this, Whirlpool India announced an additional price increase of 5 percent effective November 1, 2026. However, competitive pressures in the market may limit the company’s ability to raise prices significantly.

The brokerage maintained its 'Reduce' rating on Whirlpool’s stock but raised the target price from ₹730 to ₹758. This price target implies a potential downside of about 10 percent compared to the last closing price of ₹838.

In related sector news, ICICI Securities noted that Elica India, another player in the kitchen appliances segment, reported around 12 percent year-on-year revenue growth and approximately 22 percent year-on-year increase in profit before tax for the second quarter of FY27. Elica’s premium brand positioning and growing customer adoption of built-in kitchen solutions have supported its performance. Nevertheless, Elica remains a smaller contributor to overall revenue and is unlikely to influence the broader earnings trend in the near term.

Whirlpool of India operates in the highly competitive consumer durables market, where companies face ongoing challenges from fluctuating raw material prices, foreign exchange volatility, and changing consumer preferences. The firm’s experience underscores the difficulties businesses encounter in balancing growth with cost management amid an uncertain economic environment.

Investors and market watchers will be closely monitoring Whirlpool’s upcoming quarters to see if the company can improve margins through pricing strategies and operational efficiencies while sustaining revenue growth.