Earnings Review
Mild summer, early monsoon hit Voltas' Q1 consol PAT, sales
This story was originally published at 17:41 IST on 8 August 2025
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--Voltas Apr-Jun consol net profit INR 1.40 bln
--Analysts saw Voltas Apr-Jun consol net profit at INR 2.38 bln
--Voltas Apr-Jun consol net profit INR 1.40 bln vs INR 3.34 bln year ago
--Voltas Apr-Jun consol revenue INR 39.39 bln vs INR 49.21 bln year ago
--Voltas Q1 consol unitary cooling pdts sales INR 28.68 bln vs INR 38.02 bln
--Voltas Q1 consol electro-mechanical sales INR 9.22 bln vs INR 9.49 bln
--Voltas Q1 consol engg pdts, svcs revenue INR 1.35 bln vs INR 1.61 bln
--Voltas Q1 consol unitary cooling pdts EBIT INR 1.04 bln vs INR 3.27 bln
By Arya S. Biju
MUMBAI – Home appliances company Voltas Ltd. reported weaker-than-expected earnings for the June quarter, led by a sharp decline in demand for cooling products due to the delayed onset of summer, which turned out to be mild, and the onset of an early monsoon. A high base in the year-ago quarter, which had benefited from a harsh and prolonged summer, further impacted the company's performance in the reporting quarter.
The company's consolidated net profit for the quarter fell at its fastest pace on a year-on-year basis since the December quarter of 2015-16 (Apr-Mar) to INR 1.41 billion. This was significantly below the INR 2.38 billion estimated by the Street. Its consolidated net profit fell a staggering 58% on year and nearly 42% on quarter.
Its consolidated sales for the reporting quarter fell 20% on year and over 17% on quarter to INR 39.39 billion. This was also below the INR 43.71 billion estimated by the Street. The double-digit on-year fall in revenue came after 13 consecutive quarters of on-year rise in revenue.
Revenue from the company's largest segment, unitary cooling products, dropped over 24% on year to INR 28.68 billion. "The unitary cooling products segment faced a subdued quarter, shaped by the delayed onset of summer, relatively mild temperatures, and the early arrival of the monsoon, all of which shortened the peak selling season," the company said in a post-earnings press release. During the June quarter, the segment reported earnings before interest and tax of INR 1.04 billion, down 68% on year. However, with inventory levels expected to normalise and demand likely to improve, aided by upcoming regulatory changes such as revised energy efficiency norms, the company expects demand in the segment to recover in the coming quarters.
Its joint venture with the Turkish manufacturer of household appliances, Arelik, called Voltas Beko, reported a strong performance in the June quarter with close to 1 million units in volume sales and a 33% on-year growth. The growth momentum was led by the washing machine category, which was supported by successful product launches and product mix, Voltas said.
The company's electro-mechanical projects and services segment reported a revenue of INR 9.22 billion, down nearly 3% on year, in Apr-Jun. The "steady performance" in the segment was supported by disciplined execution, robust project oversight, and focused receivables management, Votas said. Revenue from its engineering products and services segment declined 16% on year to INR 1.35 billion.
The company's total expenditure for the quarter fell 16% on year to INR 37.92 billion. This was despite a 28% jump in raw material costs to INR 22.10 billion and a near 12% rise in other expenses to INR 4.50 billion. Its expenses related to purchase of stock-in-trade, however, declined over 32% on year to INR 11.18 billion.
"The first quarter of FY26 presented certain challenges, particularly due to unseasonal weather and shifting consumer sentiment...We view this as a one-off situation and are confident that our ongoing investments in innovation, channel expansion, and customer-centricity will enable us to overcome short-term headwinds and continue delivering sustainable growth in the quarters ahead," Pradeep Bakshi, managing director and chief executive officer of the company, said in the press release.
The company announced its earnings post market hours. On Friday, shares of the company closed at INR 1,304.90 on the National Stock Exchange, down marginally from the previous close. End
Edited by Tanima Banerjee
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