Why did AC and refrigerator prices go up in January 2026?

The Bureau of Energy Efficiency (BEE) revised its star rating system from January 1, 2026. Under the new standards, last year's 5-star products now qualify as 4-star. To retain the 5-star label, manufacturers had to use more efficient — and more expensive — components, adding 7–10% to AC prices and 3–5% to refrigerator prices.

Did the GST cut on ACs actually help consumers, and is it still effective?

Yes, but the benefit is largely gone now. In September 2025, GST on room ACs was reduced by 10 percentage points, which did bring prices down temporarily. The BEE-driven hikes from January 2026 have since offset most of that. An AC buyer today is paying roughly what they would have before the GST cut.

Which appliance stocks have benefited from the price hike news?

Shares of TTK Prestige and Stove Kraft have rallied up to 15% in March 2026, even as the broader market remained weak. Other stocks in focus include Havells, Voltas, Amber Enterprises, Dixon Technologies, Blue Star, Polycab, and EPACK Durable — all of which benefit from seasonal summer demand and better pricing power as companies pass on higher input costs.

Will appliance prices come down in the next few months?

Unlikely in the near term. The BEE compliance costs are structural — they don't reverse with the season. Currency and commodity pressures would also need to ease for input costs to fall meaningfully. The summer months (March–June) will test how much of the price increase the market can absorb, but there's no obvious trigger for prices to drop in the next six months. If you need to replace a major appliance, waiting is unlikely to pay off.

AC & Fridge Prices Up 10% in 2026: BEE Norms, Rupee & Chip Costs

Your AC, Fridge, and TV Just Got Pricier. Here's the Full Picture.

New energy norms, a weak rupee, and rising input costs have pushed appliance prices up 5-15% across categories. Here's what changed and what it means for your wallet and your portfolio.

Team Sahi

Published: 11 Mar 2026, 11:15 AM IST (1 week ago)

Last Updated: 12 Mar 2026, 12:31 PM IST (1 week ago)

6 min read

If you bought an AC recently and felt the price was higher than expected, you weren't imagining it. Appliance prices have moved up meaningfully across categories, and the stocks of companies making those appliances are now rallying sharply, with TTK Prestige and Stove Kraft up as much as 15% today even as the broader market stays weak.

Here's what's driving both and what it means if you're a consumer, an investor, or both.

The main trigger: BEE's revised star ratings

From January 1, 2026, the Bureau of Energy Efficiency (BEE) raised the bar on its star rating system for appliances. The change sounds bureaucratic, but the price impact is real: what was a 5-star AC last year now qualifies as 4-star under the new norms. To maintain a 5-star label, manufacturers had to redesign products with more efficient and more expensive components.

The result: AC prices are up 7–10%, and refrigerators have seen 3–5% increases. The revision also extended mandatory star labelling to a wider product set, including televisions, induction gas stoves, deep freezers, cooling towers, and solar inverters. This wasn't optional; companies had to comply or pull products.

Several costs moved at the same time

The BEE change didn't land in isolation. Three other cost pressures hit simultaneously:

A weaker rupee pushed up import costs for components like compressors, inverter drives, printed circuit boards, and semiconductors, all heavily sourced from abroad.
Steel, aluminium, and copper prices remained elevated globally. These materials go into appliance bodies, motors, wiring, and heat exchangers; there's no easy substitute.
DRAM and NAND chip prices (these are chips that help the device function and remember its functions) rose sharply, hitting smart TVs directly. TV prices are expected to rise up to 10% through 2026 as a result.

Taken together, manufacturers are dealing with a materially worse input cost environment than 18 months ago, and they're passing it on.

The GST thing is worth understanding

In September 2025, the GST on room air conditioners was cut by 10 percentage points (from 28% to 18%). This was a consumer-friendly move that brought prices down temporarily. The BEE-driven hikes have largely offset that benefit. So if you bought an AC before January and check the price today, it'll look roughly the same as pre-GST-cut; the savings got absorbed by the new compliance costs.

What happened in the stock market, and why?

TTK Prestige and Stove Kraft are up as much as 15% today, in a market that's broadly weak. The rally has two engines, not one.

The first is the LPG demand shift. When cylinders run short and prices jump, households don't wait; they switch. Induction cooktops are flying off shelves: Flipkart says sales tripled this week, and Amazon reports a 20-fold surge. That's a real, immediate demand tailwind for appliance manufacturers. Dixon Technologies and Havells, both of which make induction cooktops, are direct beneficiaries. This isn't a slow structural story; it's happening right now.

The second layer is pricing power. BEE (Bureau of Energy Efficiency) compliance, a weaker rupee, and higher commodity costs have pushed manufacturers to raise prices across categories. Companies that can pass those costs on, rather than absorb them — see margins hold. Investors are pricing that in today.

Together, those two forces: a demand surge on induction and improved pricing across the board, explain why the sector is moving while everything else isn't.

Where prices moved most

Not every category was hit equally. The sharpest increases are in cooling appliances (ACs, refrigerators) because of BEE compliance and smart TVs from the chip and rupee squeeze. Products with more domestic component content and simpler electronics have seen less pressure.

On the demand side, tier-2 and tier-3 city consumers remain the growth engine. Analysts expect volume growth to hold, with a shift in mix toward more energy-efficient and more expensive models. The summer months (March–June) are the real test of how much of these increases the market absorbs.

For investors watching this space

In the near term, companies with pricing power and low channel inventory benefit most. Voltas, for instance, reported strong secondary AC sales in February, partly from dealers pricing aggressively in December ahead of the norm change.

In the medium term, margins stay under pressure for companies that can't pass on full cost increases. Long-term, the shift to higher-efficiency appliances is structural; companies investing in BEE-compliant product lines (Havells, Blue Star, Amber) are better positioned than those scrambling to catch up.

Sources: Business Standard, BEE notification (January 2026), Angel One sector note, BusinessToday. This article is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before making investment decisions.