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Informist, Friday, Nov. 7, 2025

By Simran Rede

MUMBAI – With excessive southwest rainfall weighing on the already seasonally weak quarter, Voltas Ltd.'s revenue for the September quarter is likely to take a hit. Purchases being deferred owing to the expected cut in goods and services tax also impacted demand, analysts said. The company's bottom line and top line are seen down for the second consecutive quarter in Jul-Sept.  

The electrical appliances maker is expected to post a consolidated net profit of INR 991.60 million for the September quarter, down 26% on year and over 29% from the trailing quarter, according to the average of estimates from 10 brokerages. The highest estimate for the company's net profit is INR 1.57 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 851 million from Elara Securities (India) Pvt. Ltd.

Voltas is likely to have earned revenue of INR 24.10 billion in the September quarter, according to the average of these estimates. The company's revenue is seen falling 8% on year and around 39% sequentially. Estimates for the company's revenue range from INR 22.48 billion by Motilal Oswal Financial Services Ltd. to INR 26.93 billion by Nirmal Bang Equities Pvt. Ltd.

The company's room air conditioner segment, which is the highest contributor to its revenue, is likely to see a sharper decline in sales during the quarter under review. Sales in this segment are likely to be 30-40% weak on year due to high opening channel inventory, early onset of the monsoon, and five weeks of disrupted secondary sales due to the announcement in mid-August that GST would be cut, Kotak Securities said. 

Revenue from the company's unitary cooling products segment is likely to decline 15–25% on year, given high channel inventories and reduction in margins. This segment's EBIT margin is expected to contract around 435 basis points on a year-on-year basis to 3% due to negative operating leverage, price adjustment and promotions, and channel support, analysts said. 

While some analysts estimate revenue from the consumer durables company's electro-mechanical projects to rise 5.0–12.6% in the quarter, Motilal Oswal estimates it will decline 4% on year. Kotak Securities projects this segment to record am earnings before interest margin of 5% in the reporting quarter compared to 5.2% in the year-ago quarter and 5.3% in Apr-Jun.   

Kotak expects the company's engineering products and services business to decline 10% on year but Motilal Oswal expects it to grow 3% on year. Kotak expects the segment to report an EBIT margin of 30% in the quarter under review. 

The company is expected to report earnings before interest, tax, depreciation, and amortisation of INR 1.04 billion for the September quarter, according to the average of estimates from nine brokerages. The EBITDA estimates range from a low of INR 738 billion by JM Financial Institutional Securities Pvt. Ltd. to a high of INR 1.40 billion by Nirmal Bang. Kotak Securities expects the EBITDA to fall 40% on year in the reporting quarter and Motilal Oswal sees it contracting 35% on year.

The company's EBITDA margin is expected to decline because of negative operating leverage in its core business, according to analysts. The EBITDA margin is seen declining 150-213 basis points on year to 4.1-4.7% during the September quarter. 

The company is slated to announce its September quarter results on Nov. 13. Of the 16 brokerage reports on the company available with Informist, six have a 'buy' or equivalent rating on the stock. Seven brokers have a 'hold' or equivalent rating on the stock, with an average target price of INR 1,379 and three have a 'sell' or equivalent rating.

On Thursday, shares of Voltas ended 5% lower at INR 1,292.40 on the National Stock Exchange. Since reporting its June quarter earnings on Aug. 8, shares of the company have risen nearly 4%. For the June quarter, the company had posted a consolidated net profit of INR 1.40 billion, down 58% on year, lower than analysts' estimate of INR 2.38 billion. Its revenue had fallen over 20% on year to INR 39.39 billion.

Following are the Jul-Sept earnings estimates for Voltas from 10 brokerages in descending order by the estimate of net profit in INR million:

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Edited by Avishek Dutta

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