Amber Enterprises’ (Amber) Q2FY26 performance was marred by subdued margins due to weaker margins of RAC segment.

The primary as well as secondary sales were impacted in Q2FY26 due to excess trade inventory at beginning of Q2FY26 and five weeks difference in announcement and implementation of GST reduction – that’s the chief takeaway from the management call.

We interacted with the management of Voltas (VOLT) to understand the current demand trend, the company’s strategy to play festive demand and GST rate cuts, and the segmental performance.

Voltas’ Q1FY26 performance was weighed down by softer summer product sales, following an unusually early monsoon.

We downward revise our FY26/FY27E earnings estimate by 18.5%/6.2% factoring in correction in aggregate volume in UCP while margins are expected to be at 5% due to promotional offers aimed at liquidating inventory, high fixed costs from low plant utilization, and increases in cost due to BEE norms. Anticipating strong demand, Voltas's trade partners had built up inventory; however, softer secondary sales led to slower off-take and elevated stock levels, prompting the company to temporarily scale back production. UCP EBIT margins contracted due to focus on driving volumes through aggressive pricing...

Voltas (VOLT)’s 1QFY26 earnings were below our estimate. Revenue dipped ~20% YoY to INR39.4b (-10% vs. estimate), due to ~25%/16%/3% YoY decline in UCP/PES/EMPS revenue.

Seasonal challenges notwithstanding, Orient Electric posted strong Q1FY26 numbers with EBITDA margin expansion of 68bps and marginal revenue growth of 1.9% YoY.

Voltas delivered steady performance in Q4FY25, driven by impressive growth in the UCP segment and healthy margins. Voltas' Chennai RAC manufacturing facility's ramp-up is on track, enhancing supply chain efficiency in southern and western regions. The company's strategic plans, including new product launches and distribution network expansions, are poised to further bolster its market share. Operational efficiencies and optimised manufacturing capabilities would also contribute to the success. Currently, the stock trades at 42X 1-year blended forward PE valuations. However, a short summer and early onset of monsoon could impact...

We interacted with the management of Voltas (VOLT) to gain insights into the current demand trends, the company’s strategy amid challenging conditions, and segmental performance.

investments. No major price hikes were announced as the company wants to focus on maintaining its market share. Voltas prioritizes volume growth and market share over immediate margin expansion. Voltbek is expected to achieve EBITDA breakeven by early FY26. We estimate revenue/EBITDA/PAT CAGR of 15.0%/19.5%/25.3% over FY25-27E. The stock is currently trading at...

Topline grew 18% YoY in Q3; EBITDA margin expanded 530bps YoY fueled by better cost efficiencies

Q3 beat with topline up 117% to Rs 105bn; and PAT 3% below our estimate at Rs 1.7bn

Voltbek, which is still in an investment mode, is likely to be value accretive from FY25, in our view. It has focussed on gaining volumes and market shares since its inception in FY18. We believe it will have market share of ~10% in its both the key categories i.e. refrigerators and washing machines in next couple of years.

Q2 revenue jumped 133% YoY, driven by Mobile and EMS growth; EBITDA margin slid 30bps on change in business mix

Q2 achieved 82% YoY topline growth with 30bps EBITDAM expansion, although gains were tempered by the shift in product mix

An established ‘cash cow’, Eureka Forbes were the pioneers for introducing water purifier and
vacuum cleaner in India. Eureka Forbes has a long history of launching innovative products and
campaigns in India.

Q1FY25 revenues grew by 28.7% to Rs 2,865 crore in line with our estimate of Rs 2,895 crore.
Unitary products segment (room ACs and commercial refrigeration) grew by 44% to Rs 1,729 crore
on increased demand due to soaring temperatures and a harsh summer