GST reforms fuel AC sales spike: Report

Delhi: Room air conditioners saw a sharp surge in demand during the festive season, aided by deferred purchases following GST rate cuts, a new report said on Friday.

However, the data compiled by BNP Paribas India highlighted that overall demand expected to remain flat in the near term.

Lighting saw healthy improvement in demand over the past few months with continued traction for the premium segment, the report said.

Demand for cables remained strong, while wires demand has picked up with the resumption in construction activities post an extended monsoon, it noted.

Cable and wire brands have hiked prices, which could aid in better realisation growth in Q3 FY26, the report added.

Inventory normalisation in white goods category is skewed toward large format retailers at 15–20 per cent above normal, versus general trade at 35–40 per cent

The channel remains reluctant to stock up in the near term and does not foresee a meaningful demand pick-up by end of December 2025 from the BEE rating change, although brands are likely to push the old-rated inventory.