Voltas Ltd. share price target

Revenue grew 19% YoY but was 9% below estimates; EBITDA rose 49% YoY, supported by UCP margin expansion and cost optimisation

VOLT’s 1QFY27 revenue increased ~19% YoY to INR46.7b (~7% miss), driven by ~32%/17% YoY growth in UCP/PES segments, while EMPS revenue declined ~27% YoY.

EBITDA fell 33.7% YoY to Rs. 221cr, and the EBITDA margin contracted 240bps YoY to 4.6%, due to increase in cost of materials. Rep. PAT declined 51.9% YoY to Rs. 113cr, due to lower operating profitability, especially in cooling, along with inflation and currency-related margin pressure. The company delivered marginal growth driven by its leadership in cooling products, portfolio refresh with AI-powered innovations and strengthened brand positioning through refreshed marketing. Management remains focused on premiumisation, deeper localisation at manufacturing facilities, expanded distribution and intelligent...

Voltas posted a weak Q4, with revenue at Rs48.9bn (up only 3% YoY); margins too disappointed, with EBITM at 5% (missed our estimate of ~7.8%; BLSTR posted 10.4% UP EBITM in Q4) and resilient UCP demand (up 1% YoY despite the high Q4FY25 base).

Q4 revenue rose 3% YoY to Rs 48.9bn, while EBITDA missed by ~25% on a 499bps YoY UCP margin contraction

manufacturing utilization at Chennai and Pantnagar facilities, deeper localization and commodity inflation, currency depreciation and continued investments in branding supported by calibrated price hikes, cost optimization initiatives, improved operating leverage. However, additional price hikes may be undertaken depending on...

We recommend a BUY rating on the stock with a TP of Rs 1,628/share, implying an upside of 10% from the CMP.

Q3 revenue flat YoY with strong QoQ recovery; EBITDA missed estimates as UCP margin took a hit, on account of channel support

Voltas (VOLT)’s 3QFY26 revenue declined ~1% YoY to INR30.7b (in line), led by ~21%/9% YoY growth in the PES/UCP segments, while EMPS revenue dipped ~18% YoY.

We attended Voltas’s analyst meet, to gain deeper insight into its growth roadmap/demand environment. The management indicated prebuying activity ahead of the BEE rating changes wef 1-Jan-26 and inventories gradually depleting from 60 days (in Q2FY26) to 45 days (currently) vs 20-25 days (in Q3FY25).

VOLT highlighted that RAC volume remained under pressure in 3QFY26 due to higher channel inventory (~45 days) and a strong winter, though the YoY decline has moderated and there are multiple levers (GST rate cut increase affordability, energy label changes) to drive demand going forward.

Voltas delivered steady performance in Q2FY26, driven by its diversified portfolio, disciplined project execution and strengthening presence in commercial cooling and appliances. Overall performance remained subdued due to demand deferment, seasonal weakness and softer traction in core cooling. Management expects conditions to gradually improve, supported by GST-led affordability, the Bureau of Energy Efficiency transition, upcoming product refreshes, stronger channel activation and localisation-led efficiency gains. Expansion in Commercial Air Conditioning (CAC), refigeration, Voltbek and infrastructure solutions should provide...

Q2 revenue and EBITDA below estimates; 10% YoY drop led by a sharp 23% decline in UCP sales (-23% YoY) amid weak RAC offtake

Voltas (VOLT)’s revenue declined ~10% YoY to INR23.5b (in line) in 2QFY26, driven by a 23%/5% dip in UCP/PES segments, while EMPS revenue grew ~10% YoY.

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.

Q1 revenue and EBITDA below estimates; 20% YoY drop led by a sharp 25% fall in UCP with muted performance in other segments

Hit by an erratic summer, Voltas’ UCP fell 25% y/y in Q1, its market share down to 17.8% (June-end 19.3%). Under-absorption and higher promotions squeezed margins, while inventory was high.

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.