4 Stocks to Watch as India’s Air Conditioner Market Gears Up for Explosive Growth
4 Stocks to Watch : The Indian air conditioner (AC) market is poised for rapid expansion, with revenue expected to hit $7 billion in 2025 and a compound annual growth rate (CAGR) of 17.58% from 2025 to 2030. By 2030, the market volume is projected to reach 28 million units, with a remarkable 17.1% volume growth anticipated in 2026.
This surge is primarily fueled by rising temperatures, an expanding middle class, and rapid urbanization, making the AC industry one of the hottest investment opportunities. As demand soars, several companies stand to benefit significantly from this market boom. Here are four stocks to keep on your radar as India’s AC sector heats up:
1. Amber Enterprises Limited (NSE: AMBER)
A Key Player in Air Conditioner Manufacturing
Amber Enterprises is a dominant force in the Room Air Conditioner (RAC) industry, holding a 27.3% market share in manufacturing. The company specializes in manufacturing consumer durables, electronics, and railway subsystem solutions.
Recent Performance:
- Market Cap: ₹19,032.6 crore
- Stock Price: ₹5,960 (as of last Friday)
- Q3 FY25 Revenue: ₹2,133.3 crore (+64.8% YoY)
- Q3 FY25 Net Profit: ₹36 crore (compared to a loss of ₹0.5 crore in Q3 FY24)
With a strong growth trajectory and strategic market positioning, Amber is a top pick for investors looking to capitalize on India’s AC boom.
2. Blue Star Limited (NSE: BLUESTARCO)
A Leader in Cooling and Refrigeration Solutions
Blue Star is one of India’s most trusted brands in air conditioning and commercial refrigeration. It has also expanded into water purification, engineering facilities management, and healthcare refrigeration.
Recent Performance:
- Market Cap: ₹39,392.7 crore
- Stock Price: ₹1,950
- Q3 FY25 Revenue: ₹2,807 crore (+25.3% YoY)
- Q3 FY25 Net Profit: ₹132 crore (+32% YoY)
- Market Share in Room ACs: 14% as of December 2025
With a diversified product range and strong market presence, Blue Star is well-positioned to benefit from India’s growing demand for cooling solutions.
3. Voltas Limited (NSE: VOLTAS)
The Market Leader in Air Conditioners
Voltas, a Tata Group company, has maintained its market leadership in both Split and Window ACs, with a 20.5% market share as of December 2024. It has also expanded into air coolers, washing machines, and refrigerators.
Recent Performance:
- Market Cap: ₹43,580.8 crore
- Stock Price: ₹1,334.65
- Q3 FY25 Revenue: ₹3,105 crore (+18% YoY)
- Q3 FY25 Net Profit: ₹131 crore (compared to a loss of ₹28 crore in Q3 FY24)
- Air Cooler Market Share: 11.1% (Ranked No. 2 in India)
- Washing Machine Market Share: 8.3%
- Refrigerator Market Share: 5.1%
With diversified offerings and strong brand loyalty, Voltas is a key stock to watch in the AC segment.
4. KRN Heat Exchanger and Refrigeration Limited (NSE: KHERL)
A Crucial Supplier to the AC Industry
KRN Heat Exchanger and Refrigeration is a leading manufacturer and exporter of heat exchangers, condensers, and evaporator coils used in HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) systems.
Recent Performance:
- Market Cap: ₹5,419.4 crore
- Stock Price: ₹932.35
- Q3 FY25 Revenue: ₹111 crore (+68.2% YoY)
- Q3 FY25 Net Profit: ₹14 crore (+75% YoY)
As demand for air conditioners and HVAC systems surges, KRN is likely to see sustained growth.
Financial Ratios of These Top AC-Related Stocks
| Stock Name | Market Cap (₹ Cr) | Q3 FY25 Revenue Growth | Q3 FY25 Net Profit Growth | Market Share in AC Segment |
|---|---|---|---|---|
| Amber Enterprises | 19,032.6 | +64.8% | Turned profitable | 27.3% (Manufacturing) |
| Blue Star | 39,392.7 | +25.3% | +32% | 14% |
| Voltas | 43,580.8 | +18% | Turned profitable | 20.5% |
| KRN Heat Exchanger | 5,419.4 | +68.2% | +75% | Supplier to HVAC Industry |
Why Should You Invest in AC Stocks Now?
- Booming Market Growth – With a 17.58% CAGR, India’s AC market is expanding at an unprecedented pace.
- Rising Demand – Increasing disposable incomes and changing climate patterns are driving higher AC penetration.
- Government Initiatives – Policies such as Make in India and PLI (Production-Linked Incentive) schemes are supporting domestic AC manufacturing.
- Strong Corporate Performance – AC companies are reporting high revenue growth and improved profitability, signaling a robust industry outlook.
Final Thoughts
The Indian AC market is set for massive expansion, making Amber Enterprises, Blue Star, Voltas, and KRN Heat Exchanger attractive investment options. With rising temperatures, urbanization, and growing disposable incomes, the demand for air conditioners is only expected to rise.
Investors looking to capitalize on India’s AC industry growth should keep a close eye on these stocks, as they are well-positioned to benefit from the sector’s explosive demand.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.