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Informist, Friday, Nov. 14, 2025

 

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--Voltas: Expect rebound in cooling products segment in Oct-Mar 
--CONTEXT: Comments by Voltas mgmt in post-earnings concall with analysts 
--Voltas: Hope to clear inventory backlog with sales channels 
--Voltas: Channel partners, company currently have 2-month inventory 
--Voltas: Market share has been improving continuously since past quarters 
--Voltas: Q2 residential air conditioner market share 18.5% vs 17.8% in Q1 
--Voltas: See very good opportunity for sales of chillers in coming years 
--Voltas: Demand trajectory for products strong due to cut in GST rate 
--Voltas: Expect inventory levels to even out by December 

By Arya S. Biju and Avishek Rakshit

 

MUMBAI – Voltas Ltd. aims to strengthen its market share further while maintaining its leadership position in the air conditioners segment, on optimism that demand will revive in the coming months, which will help clear its unsold inventory with channel partners, its management said in a post-earnings call with analysts Friday. After a subdued first half, the company expects to see improved traction in the coming quarters aided by the recent cut in goods and services tax rates and channel stock-up ahead of the upcoming summer season.

 

The company witnessed a sharp decline in demand for cooling products in the first two quarters of 2025-26 (Apr-Mar), impacted by the early onset of monsoon, deferred purchases and higher channel inventory ahead of a reduction in goods and services tax rates in September. Consolidated sales from the company's unitary cooling products segment fell to INR 40.83 billion in Apr-Sept, from INR 53.84 billion reported in the same period a year ago.

 

Currently, Voltas' channel partners have roughly around two months of inventory, a top company official said, adding that it expects this to start easing out as demand picks up. "...we have done everything possible to ensure by giving better sell-out schemes like subsidised installation, better consumer finance schemes to them (channel partners) to help them sell out so that in no way they get stuck with the stock," the official said. It expects inventory levels to even out by December.

 

Further, the Bureau of Energy Efficiency's energy efficiency transition effective January is expected to unlock pent-up consumer demand. "The company is fully ready with the new table products for the upcoming transition. This change is expected to drive consumer upgrades in the second half, providing a positive flip to demand and product mix improvement," a top company official said.  

 

Despite the challenges in the first half, the company's market share improved over the past quarters, reinforcing its leadership position, Voltas said. Going ahead, gaining market share will be its key focus. The company's market share in its core residential air conditioner business improved to 18.5% in the September quarter, up from 17.8% in the June quarter and 16.0% in the March quarter of FY25.

 

The company is currently adding more channel partners across the country to its commercial air conditioning business, in which it has a relatively lower market share than its competitors, its management said. "We are also adding new product portfolios, including centrifugal chillers and VRF (variable refrigerant flow) systems into our product portfolio," a company official said. The company expects a "very good opportunity" for centrifugal chillers over the next few years.

 

Voltas expects steady growth in its electro mechanical projects and services segment to continue over the medium term with a robust consolidated order book exceeding INR 62 billion and a healthy bid pipeline countering cyclical growth. Of the INR 62 billion order book, INR 48 billion came from domestic projects and around INR 14 billion was from international business, Voltas said. During the first half of the year, revenue from the segment rose over 3% on year to INR 18.88 billion.

 

The home appliances company Thursday reported subdued earnings for the September quarter, with its consolidated net profit falling at its fastest pace on a year-on-year basis since the December quarter of 2015 to INR 342.9 million and its consolidated revenue declining over 10% on year to INR 23.47 billion. On Friday, shares of Voltas closed over 1% higher at INR 1,350.90 on the National Stock Exchange.  End 

 

Edited by Ashish Shirke

 

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