A recent report by Centrum indicates that electrical and consumer durable companies are experiencing margin pressures despite reporting an 11% year-on-year revenue growth to ₹489 billion in the March quarter of FY26. The profitability of these firms is under strain, with EBITDA margins falling by 100 basis points to 9.8% and profit after tax declining by 19% to ₹26.7 billion. The wires and cables (W&C) segment was a standout performer, achieving over 20% sales growth due to increased commodity-linked realizations. However, other categories such as air conditioners and refrigerators struggled with subdued demand, attributed to a delayed summer and high channel inventory. Conversely, kitchen appliances and lighting products showed robust growth. The report highlights that rising commodity costs and forex volatility are significant factors affecting margins, as companies find it challenging to pass these costs onto consumers. Looking ahead, the report anticipates continued margin pressure in Q1FY27 as input costs remain high and demand fluctuates.