Earnings Outlook
Early monsoon, tepid summer to drag down Voltas' results
This story was originally published at 10:55 IST on 7 August 2025
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By Simran Rede
MUMBAI - Voltas Ltd. is expected to post weak earnings for the June quarter on a year-on-year basis due to a less intense summer, early onset of the monsoon, and high channel inventory. The company is expected to report a consolidated net profit of INR 2.38 billion, down nearly 29% on year, according to an average of estimates from 12 brokerages. However, the fall in net profit on a quarterly basis is just 1%. The highest estimate of INR 3.56 billion for net profit is from Nuvama Wealth Management and the lowest estimate of INR 1.91 billion is from Anand Rathi Share and Stock Brokers Ltd.
The home appliances maker's earnings for the June quarter will also be affected by a high base in the corresponding quarter of the previous year because of buoyant sales of air conditioners in that quarter due to heat waves across the country.
The company's consolidated revenue for the reporting quarter is likely to fall over 11% on year to INR 43.71 billion. On a sequential basis, this will be a fall of over 8%. Antique Stock Broking has the highest estimate for consolidated revenue at INR 45.27 billion and Elara Securities (India) Pvt. Ltd. has the lowest estimate of INR 42.36 billion.
The revenue from the company's unitary cooling products segment is likely to decline 14-16% on year, primarily due to a 15-20% fall in revenue from the refrigeration and air conditioning segment. However, the company is likely to report steady growth in the commercial air conditioner segment.
While YES Securities expects revenue from the electro-mechanical projects and services segment to remain flat due to a slower pace in order-bookings, Motilal Oswal Financial Services sees it falling 8% on year. On the other hand, Kotak Institutional Securities expects revenue from this segment to rise 12% on year.
The company is expected to report INR 3.14 billion of consolidated earnings before interest, tax, depreciation, and amortisation, according to an average of estimates from 11 brokerages. Nuvama has the highest estimate for consolidated EBITDA at INR 5.30 billion and Kotak Institutional Equities has the lowest estimate of INR 2.53 billion. Nuvama and Prabhudas Lilladher Pvt. Ltd. expect Voltas' EBITDA margin to contract 370 basis points to 4.9% and 241 bps to 6.2%, respectively.
Kotak sees a 110-bps contraction on year in the EBIT margin of the unitary cooling products segment due to negative operating leverage. The EBIT margin of engineering products and services is seen down 190 bps on year to 26%.
The consumer durables company will declare its quarterly earnings Friday. At 1049 IST, shares of Voltas were at INR 1,322.40 on the National Stock Exchange, up 0.6%. The stock is up nearly 6% since the company detailed its March quarter earnings. For the March quarter, the company had reported a consolidated net profit of INR 2.41 billion and revenues of INR 47.68 billion.
Of the 16 brokerage reports on the stock available with Informist, nine have a 'buy' or equivalent rating and seven have a 'hold' or equivalent rating. The 'buy' or equivalent recommendations have an average target price of INR 1,434.
Following are the Apr-Jun earnings estimates of Voltas based on reports from 15 brokerage houses in descending order by the estimate of net profit.
Brokerage firm | Net sales (in INR million) | Net profit (in INR million) | EBITDA (in INR million) |
Nuvama Wealth Management Ltd | 44,023.00 | 3,562.00 | 5,304.00 |
Antique Stock Broking Ltd | 45,268.00 | 2,917.00 | 3,734.00 |
Motilal Oswal Financial Services Ltd | 43,553.00 | 2,422.00 | 3,152.00 |
Centrum Broking Ltd | 43,165.00 | 2,365.00 | 2,955.00 |
YES Securities (India) Ltd | 43,703.00 | 2,335.00 | 2,972.00 |
Elara Securities (India) Pvt Ltd | 42,357.00 | 2,259.00 | 2,547.00 |
Dolat Capital Market Pvt Ltd | 43,309.00 | 2,256.00 | 3,042.00 |
Nirmal Bang Equities Pvt Ltd | 44,030.00 | 2,244.00 | 2,748.00 |
JM Financial Institutional Securities Pvt Ltd | 43,306.00 | 2,224.00 | 2,836.00 |
Prabhudas Lilladher Pvt Ltd | 44,229.00 | 2,123.00 | 2,742.00 |
Kotak Institutional Equities | 44,042.00 | 1,949.00 | 2,528.00 |
Anand Rathi Share and Stock Brokers Ltd | 43,516.00 | 1,910.00 | NA |
Average | 43,708.42 | 2,380.50 | 3,141.82 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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