Whirlpool of India Reports Decline in Q2 Financial Performance

Whirlpool of India Limited has reported a decline in its financial performance for the second quarter of the fiscal year 2025-26. The company, a leading manufacturer of home appliances, faced challenges across key financial metrics, as revealed in its latest quarterly results.

Revenue and Profit Decline

The company's revenue from operations decreased to ₹16.50 billion in Q2 FY2025-26, down from ₹17.13 billion in the same period last year, marking a 3.7% year-over-year decline. This reduction in top-line performance indicates potential headwinds in the consumer appliance market or increased competition.

Net profit for the quarter stood at ₹413 million, a significant drop from ₹520 million reported in the corresponding quarter of the previous year, representing a 20.6% decrease. This decline in profitability could be attributed to various factors, including increased operational costs or market pressures.

EBITDA and Margin Compression

Whirlpool of India experienced a substantial decline in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). The EBITDA for Q2 FY2025-26 was reported at ₹578 million, down from ₹870 million in the same quarter last year, showing a 33.6% decrease.

The EBITDA margin also saw compression, falling to 3.51% from 5.08% year-over-year. This margin contraction suggests that the company faced challenges in maintaining its operational efficiency during the quarter.

Financial Performance Overview

To provide a clearer picture of Whirlpool of India's Q2 FY2025-26 performance, here's a tabular representation of the key financial metrics:

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue from Operations	₹16.50 billion	₹17.13 billion	-3.7%
Net Profit	₹413 million	₹520 million	-20.6%
EBITDA	₹578 million	₹870 million	-33.6%
EBITDA Margin	3.51%	5.08%	-157 bps

The decline across all major financial indicators suggests that Whirlpool of India faced a challenging quarter. The company may need to address these headwinds through strategic initiatives to improve its performance in the coming quarters.

Investors and market analysts will likely be closely watching Whirlpool of India's future performance and any measures the company might take to reverse this downward trend. The management's commentary on these results and their outlook for the rest of the fiscal year will be crucial for stakeholders to understand the company's path forward.

As the home appliance market continues to evolve, Whirlpool of India's ability to adapt to changing consumer preferences and market dynamics will be key to its future growth and profitability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.95%	-0.01%	-21.91%	-32.79%	-51.20%	-63.45%

Whirlpool of India Limited has successfully obtained shareholder approval for a significant amendment to its Articles of Association (AoA) through a postal ballot. The special resolution to alter the company's AoA was passed with an overwhelming 99.995% of votes in favor.

Key Highlights of the Approved Changes

Deletion of Articles: The company has removed Articles 4, 4A, and 108A from its AoA.
Removal of Existing Provisions: The amendment eliminates provisions related to Financial and Technical Collaboration Agreements with Whirlpool and trademark usage conditions.
ICICI Nominee Director: Provisions regarding ICICI nominee directors have also been removed.

Rationale Behind the Amendments

The approved deletions are strategically aligned with changes in Whirlpool's shareholding structure and aim to ensure business continuity. The amendments reflect the company's evolving relationship with its parent company and the modernization of its governance structure.

Articles Deleted

Article 4: Pertained to Financial and Technical Collaboration Agreements with Whirlpool Corporation.
Article 4A: Concerned the use of the "Whirlpool" trade name and conditions for its withdrawal.
Article 108A: Related to the appointment of nominee directors by ICICI Bank, now redundant due to repayment of borrowings.

Impact on Shareholders

The approval of these amendments suggests a potential change in Whirlpool Corporation's relationship with its Indian subsidiary. However, the company has previously executed new Brand Licence and Technology Licence Agreements with Whirlpool Corporation and its affiliates, which are designed to maintain business continuity and support from the parent company, regardless of potential ownership changes.

Significance of the Amendment

This amendment marks a significant step in Whirlpool India's corporate evolution. By removing outdated provisions and aligning its AoA with current operational realities, the company is positioning itself for greater flexibility and efficiency in its operations.

Investors and stakeholders should view this development as part of Whirlpool India's ongoing efforts to optimize its corporate structure and governance practices. The overwhelming shareholder support for the amendment indicates strong alignment between the company's strategic direction and shareholder interests.

As Whirlpool of India Limited continues to adapt to changing market dynamics and corporate relationships, shareholders and potential investors should stay informed about further developments that may impact the company's operations and market position.