Whirlpool of India Limited Q3 FY25 Earnings Call Summary

Summary

Whirlpool of India Limited - Q3 FY 2025-26 Earnings Call Summary Thursday, February 12, 2026 5:00 PM

Event Participants

Executives 3 Aditya Jain (CFO), Arvind Uppal (Chairman), Narasimhan Eswar (Managing Director)

Analysts 5 Ankit Merchant (Kotak Securities), Dhruv Jain (Ambit Capital), Natasha Jain (PhillipCapital), Priyank (Vallum Capital), Vinay Agarwal (Invisage Capital)

Financials & KPIs

Geographic & Segment Commentary

• Refrigerators: Maintained market share leadership (No. 1 or 2 in Direct Cool) despite a weak industry environment and intensive pricing competition. Strategic focus on “decommoditization” through glass-door designs and auto-defrost technology in the Direct Cool segment.
• Washing Machines: Achieved triple-digit basis point share growth in Front Load (growing 50% YoY) and double-digit growth in Semi-Automatic. The “Dynamics Technology” (zero detergent patches) now covers 45% of the semi-automatic category portfolio.
• Air Conditioners & Elica: AC business grew >50% in CY2025 by scaling premium ranges and retail execution. Elica continues to deliver healthy double-digit margins with a strategic shift toward driving double-digit revenue growth via higher penetration.

Company-Specific & Strategic Commentary

• Long-Term Licensing: Signed a 30-year exclusive brand license and 10-year technology license with Whirlpool Corp, securing access to global R&D and future tech for major domestic appliances.
• Operational Independence: A Transitional Service Agreement (TSA) is in place until March 2029, allowing the company 3.5 years to build independent systems following the parent’s stake reduction to 40%.
• P4G Program: The “Productivity for Growth” initiative has delivered 320 bps of standalone gross margin improvement since FY2023, serving as the primary engine for reinvestment.
• Strategic Oversight: Formed a Strategic Oversight Committee including the Chairman and ex-CFO Anil Berera to support management as Whirlpool Corp moves to a non-majority shareholder role.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Ownership & Shareholding

• Question: Is there a timeline for Whirlpool Corp to divest its remaining 40% stake? (Ankit Merchant)
• Answer: The company is not privy to the parent corporation’s divestment schedule or valuation constraints; decisions are made at the US HQ level (Narasimhan Eswar).

Strategic Flexibility & Board Role

• Question: How has board autonomy changed post-stake sale? (Ankit Merchant)
• Answer: The board has increased involvement via a new Strategic Oversight Committee. Future executive compensation (ESOPs) will be tied strictly to Whirlpool India’s performance rather than parent stock (Arvind Uppal/Narasimhan Eswar).

Margin Levers & Freight

• Question: Why are freight costs higher than peers? (Dhruv Jain)
• Answer: This is a function of product mix. Refrigerators have higher volumetric freight costs as a % of revenue compared to high-value, small-form ACs or TVs (Aditya Jain).

BEE Rating Impact

• Question: What is the pricing impact of the new January energy ratings? (Narasimhan Eswar)
• Answer: All SKUs transitioned on schedule; pricing will be adjusted dynamically based on market absorption rather than immediate blanket hikes (Narasimhan Eswar).

Key Takeaway

Whirlpool of India delivered a resilient Q3 FY26, with standalone EBITDA growing 47% YoY despite a sluggish refrigerator market. The company successfully navigated a major structural shift by signing 30-year brand and technology agreements with Whirlpool Corporation, ensuring long-term operational continuity. Strategic focus remains on “decommoditizing” core categories (Direct Cool and Semi-Automatic) through premium aesthetics and proprietary technology like Dynamics wash systems. While the P4G program has successfully expanded gross margins to 30.8%, management flagged FY2026-27 as a challenging transition year due to mandatory BEE energy rating upgrades and independent system implementation costs. The company maintains a strong cash position and a negative net working capital cycle, positioning it to scale under-penetrated categories like Front Load washers and Air Conditioners while targeting high single-digit long-term CAGR. Forward performance depends on the upcoming summer season’s intensity and the company’s ability to pass through regulatory cost increases.