New Delhi, Nov 28 : Room air conditioners saw a sharp surge in demand during the festive season, aided by deferred purchases following GST rate cuts, a new report said on Friday.

However, the data compiled by BNP Paribas India highlighted that overall demand expected to remain flat in the near term.

Lighting saw healthy improvement in demand over the past few months with continued traction for the premium segment, the report said.

Demand for cables remained strong, while wires demand has picked up with the resumption in construction activities post an extended monsoon, it noted.

Cable and wire brands have hiked prices, which could aid in better realisation growth in Q3 FY26, the report added.

Inventory normalisation in white goods category is skewed toward large format retailers at 15â??20 per cent above normal, versus general trade at 35â??40 per cent

The channel remains reluctant to stock up in the near term and does not foresee a meaningful demand pick-up by end of December 2025 from the BEE rating change, although brands are likely to push the old-rated inventory.

"We do not expect the Q2 FY26 trend to change materially in the near term and prefer RAC EMS players over brands to play the CY26 summer recovery," the report said.

Nirransh Jain, India Analyst â?? Consumer Durables, BNP Paribas India, said that in the electrical consumer durables and lighting category, dealers stocked winter products and players hiked prices by 3â??4 per cent in November 2025 to offset commodity inflation.

Fan demand picked up modestly in the north and the west during the festive period but remained low in the south due to a prolonged monsoon, the report said.

In air coolers, inventory levels remain elevated 30-35 per cent above normal, prompting 2-3 per cent price cuts post summer. Lighting-product prices have stabilised since the last 2 months, though dealers remain a bit hesitant to stock up.

/IANS