Buy

We attended Voltas’s analyst meet to gain deeper insight into its growth roadmap/demand environment. The management indicated a ~20– 25% decline in RAC secondary sales across players in Apr-May ’25, with a similar impact expected on primary sales, till inventory levels normalize.

The company reported revenue of ?4,925 Million for the quarter ended March 2025, marking an 16.1% year-on-year increase from ?4,241 Million in the same quarter last year, and a growth of 25.5% rise on a sequential basis.

Dixon’s strong Q4/FY25 revenue was driven by robust growth in the mobile category, with volumes reaching 28.3m in FY25; it targets 42m–45m/60m–62m units for FY26/FY27.

Q4FY25 revenues rose 34% led by robust growth across segments. Consumer durables segment did well, growing 27%, on strong demand for RAC and non-RAC products.

We downward revise our FY26/FY27E earnings estimate by 6.6%/7.8% factoring slow demand for RAC, cost pressure for key components like compressors and copper tube, no price hikes and slow ramp up of Chennai plant. Voltas Ltd (VOLT) reported volume growth in line with the industry in UCP segment and anticipates demand recovery in upcoming quarters from extended summers and support from In Shop demonstrator. UCP EBIT margins expanded due to the better product mix in Industrial coolers and high energy efficient rated products. VOLT market share has declined slightly in RAC...

Weak prolonged winter season impacted Orient Electric’s water heater and fan sales, while lighting outperformed led by strong B2B demand. Fan demand recovered over the past 7–8 days, and management remains optimistic about Q1 performance, supported by severe summer forecast across India.

We interacted with the management of Voltas (VOLT) to gain insights into current demand trends, as well as its views on compressors, margins, market share, and more. Management believes that current demand trends for RAC remain strong, and its focus will be on growing faster than its peers.

Major player in MEP (Mechanical, Electrical, Plumbing, and Firefighting) solutions.

Voltas (VOLT)’s 3QFY25 EBITDA was largely in line with our estimate as higherthan-estimated revenue was offset by lower-than-estimated margin in UCP (5.9% v/s estimated 7.8%).

Orient Electric’s lighting category retained industry-leading growth, while its ECD was hit by late winter. Margins expanded on cost savings, premiumization and operating leverage.