| Whirlpool of India Limited | ||||
| Ratings reaffirmed at 'Crisil AA+ / Stable / Crisil A1+ ' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AA+/Stable/Crisil A1+’ ratings on the bank facilities and short-term debt of Whirlpool of India Ltd (Whirlpool India).
The rating action reflects sustenance of the strong business risk profile, characterised by Whirlpool India’s established market position in the consumer durables segment. The company has reported a five-year compound annual growth rate (CAGR) of around 6% over fiscal 2021 and is projected to record revenue of around Rs 8,000 crore in fiscal 2026. Operating efficiency, marked by stable operating margin and robust financial risk profile, further supports the ratings. Additionally, the company receives technical and technological support from its US-based parent, Whirlpool Corp (rated 'BB/Negative' by S&P Global Ratings). However, these strengths are partially offset by susceptibility to volatility in input prices and intense competition across product categories.
Whirlpool India has reported revenue of Rs 5,853 crore for the first nine months of fiscal 2026, as against Rs 5,915 crore for the corresponding period of the previous fiscal. Early onset of monsoon and deferment of sale due to rationalisation of the Goods and Services tax kept sales of cooling appliances (refrigerators and air-conditioners; around 61% of total revenue) subdued. However, the washing machine segment (around 24% of revenue) performed well during this period. Revenue is expected to grow at a healthy pace over the medium term, with improving demand for cooling appliances especially during the summer season and increasing contribution from premium products. Operating margin has been stable around 6.2% for the first nine months of fiscal 2026 (similar to the corresponding period of the previous fiscal), despite increase in raw material prices, driven by focus on cost productivity and rise in share of premium products. The margin is likely to remain stable for the full fiscal 2026, supported by anticipation of healthy summer demand, cost effective measures, small price hikes (0.5%) and increasing mix of premium products.
The financial risk profile is marked by large networth, projected to be over Rs 3,600 crore against nil debt as on March 31, 2026. Debt protection metrics remain strong, with interest cover likely to be over 10 times. The total outside liabilities to tangible networth ratio is also projected to be less than 0.8 time as on March 31, 2026, and should remain healthy in the medium term. The company plans to incur capital expenditure (capex) of Rs 300-400 crore per annum to enhance capacity of premium products (refrigerators and washing machines) and launch innovative products over the medium term. Capex will be entirely funded via internal accrual. Liquidity is adequate, backed by cash and cash equivalent of Rs 2,607 crore as on September 30, 2025 and an unutilised working capital limit.
Additionally, Whirlpool Corp has reduced its stake in Whirlpool India to approximately 40% from 51% through on-market trade in November 2025. This move is aimed at reducing debt under Whirlpool Corp and aligns with its stated intention to bring down the shareholding to around 20%. However, Whirlpool India has entered into a long-term brand and technology license agreement to maintain sustainability of its business in the long term. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of Whirlpool India and its subsidiary, Elica PB India Pvt Ltd. Both the entities are referred to as Whirlpool India.
Crisil Ratings has also amortised goodwill of Rs 747.8 crore generated at the time of acquisition of Elica PB India Pvt Ltd over 10 years from fiscal 2022.
Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Established market position in the consumer durable industry: Whirlpool India features among top three players in the refrigerator and washing machine segments, which together account for majority of its revenue. The company has maintained its market position, backed by its strong brand, established distribution network, fresh product launches and investment in R&D (research and development), and is likely to sustain its position over the medium term.
Strong financial risk profile: The financial risk profile is marked by large networth projected to be over Rs 3,600 crore against nil debt as on March 31, 2026. Total outside liabilities to tangible networth (TOLTNW) ratio is expected to remain below 0.8 time in the medium term. The debt protection metrics are expected to remain strong, aided by nil debt, with interest coverage ratio likely to be over 10 times in the medium term. Capex of Rs 300-400 crore planned per annum will be funded via internal accrual. Capex will be undertaken to enhance plant capacity for premium variants of refrigerators and washing machines, along with product innovation.
Technical support from the parent: Whirlpool Corp is one of the world’s largest manufacturers of home appliances. Whirlpool India benefits from the strong international brand and robust technical capability of its parent. Further it receives healthy credit from its suppliers on procuring raw material and traded goods, given its established brand and longstanding relationships. Considering the large market, low penetration, increasing domestic demand and rising disposable income in India, Whirlpool India will remain strategically important to its parent. |
Key Rating Drivers - Weaknesses Exposure to intense competition: Despite stiff competition from large, organised players, Whirlpool has maintained its market share in the refrigerator and washing machine segments, leveraging its vast distribution network and healthy brand image. However, competitive intensity keeps profitability under pressure. Consolidation in market position could enhance profitability and hence remains monitorable.
Susceptibility to volatility in raw material prices: Raw material and traded goods form 65-70% of the cost of sales. Prices of primary raw material (aluminum, copper, plastic and steel) have been volatile over the past few years. However, focus on premium portfolio (fetching a high margin) and the cost reduction programme will help the margin improve over the medium term. |
Liquidity Superior Liquidity is driven by ample cash and equivalent of Rs 2,607 crore as on September 30, 2025, and further aided by an unutilised working capital limit. Healthy annual cash generation of over Rs 450 crore against nil term debt will cushion liquidity. The cash accrual will be sufficient to fund the capital expenditure (capex) and incremental working capital requirement. |
Outlook Stable Whirlpool India will continue to continue to benefit from its healthy market share and established brand. The financial risk profile is expected to remain strong over the medium term, with robust capital structure and liquidity. |
Rating Sensitivity Factors Upward factors:
Downward factors:
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About the Company Whirlpool India was incorporated as Kelvinator of India Ltd in 1960 and got its present name in 1994, when it entered into a strategic alliance with Whirlpool Corp. Subsequently, Whirlpool Corp fully acquired the company in 1995. It has manufacturing facilities at Faridabad (Haryana), Puducherry, and Pune (Maharashtra). It manufactures refrigerators, washing machines, premium kitchen appliances and deals in air conditioners, microwave ovens and dishwashers. |
Key Financial Indicators (consolidated)- Crisil Ratings-adjusted numbers
Note: PAT (reported by the company) differs by ~Rs 74.8 crore due to adjustments (amortisation) for goodwill of Elica PB India Pvt Ltd and govt. grants related to fixed assets of ~Rs 4 crores in FY25 and ~Rs 12 crores in FY24. |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure - List of Entities Consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||
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Criteria Details
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