Whirlpool of India Q2 profit falls 39% on cost pressure

Whirlpool of India Limited reported a 39% year-on-year decline in Q2 FY27 net profit to ₹25 crore, despite a 13.7% increase in revenue to ₹1,873 crore. The gap between revenue growth and profitability remains the key concern in the results. EBITDA declined 31% to ₹40 crore from ₹58 crore a year ago, while EBITDA margin contracted to 2.13% from 3.5%. Profit before tax, excluding exceptional items, stood at ₹34 crore, with a margin of 1.8%, down 110 basis points year-on-year. The company attributed the margin pressure to higher commodity costs, rising crude oil prices, currency depreciation and additional expenses arising from new energy regulations for refrigerators and air conditioners. Investments in its premium Luxuriem refrigerator range also added to costs. In my view, the 13.7% revenue growth is encouraging, but the sharp decline in EBITDA indicates that higher sales are not translating into operating leverage. This is particularly concerning for a consumer durables business where commodity prices and currency movements can directly affect product margins. The additional 5% price increase implemented from November 1, 2026, could provide some relief, but its impact will depend on how much of the increase can be passed on to consumers without affecting demand. Elica India delivered a better performance, with revenue rising 12% and PBT increasing 22% year-on-year. However, the parent company's margin recovery remains the key factor to watch. Going ahead, I will track the impact of price hikes, commodity cost trends and EBITDA margin improvement in the coming quarters. A sustained recovery in margins is needed before the earnings outlook turns more positive. My view: Cautious on near-term earnings visibility. Revenue growth is healthy, but margin recovery needs confirmation. Shares closed at ₹837.60 on the NSE, down 0.31%. WHIRLPOOL Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities