As home appliances market recovers, Waves will return to the AC market

Waves Corporation and its key subsidiary Waves Home Appliances say the worst of the down-cycle is behind the sector and are preparing a full re-entry into air conditioners (ACs) – a category they exited during the currency crisis over the past three years – betting that a recovering consumer and a cleaner balance-sheet can restore growth in the core white-goods franchise.

On a consolidated basis, Waves Corporation reported a robust rebound for the first nine months of calendar year 2025, with net sales up by the mid-teens and profits roughly doubling from the prior year. Specifically, 9MCY25 consolidated revenue rose about 15% year-on-year to Rs3.54 billion, while profit after tax increased about 130% to Rs648 million. Gross margin was near 30% for 9MCY25, EBITDA up about 12%, and profit before tax up about 91% year-on-year, reflecting both operating improvement and a large contribution from “other income.”

At the subsidiary level, Waves Home Appliances’ full-year CY24 was still a rebuilding year – sales fell about 24%. But the turning point is visible in CY25’s run-rate: in 3QCY25 alone, revenue rose about 21% year-on-year and profit after tax swung to Rs106 million, lifting the quarterly net margin to 13%. The operating line improved as well, with operating profit up about 17% year-on-year in the quarter. Margin expansion alongside a rising top line signals that pricing, mix and cost discipline are beginning to offset the drag from elevated borrowing costs.