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Informist, Wednesday, May 6, 2026

By Prateem Rohanekar

MUMBAI – Voltas Ltd. is likely to report a year-on-year fall in its net profit for the March quarter as margins of its unitary cooling products are seen to remain subdued because the company did not completely pass on the increase in cost of raw materials to customers. The company is expected to report moderate growth in revenue in its projects business, and electro-mechanical projects and services business.

For the March quarter, the company is expected to report consolidated net profit of INR 2.31 billion, down nearly 4% on year, but up by around 108% on quarter, according to an average of estimates by 14 brokerages. The company is expected to report net sales of INR 49.98 billion, up around 5% on year and around 63% higher on quarter, according to the average of estimates.

Nomura Equity Research has the highest estimate for the company's net profit at INR 2.91 billion and Equirus Securities Pvt. Ltd. has the lowest estimate at INR 2.01 billion. Batlivala and Karani Securities India Pvt. Ltd. has the highest estimate for the company's net sales at INR 54.57 billion and Yes Securities India Ltd. has the lowest estimate at INR 47.72 billion.

Nomura expects the company to sell at least 1 million air conditioning units, up 18% on year, due to a strong channel push on anticipated price hikes. The sales volumes of the company should drive 14% on-year growth in revenues of unitary cooling products of the company, according to Nomura.

An around 5% price increase is likely in April despite an around 5% hike in March, Nomura said in its pre-earnings report. The brokerage flagged this against the 13% sequential growth in commodity cost during the quarter. Prices of aluminium have gone up 13% on quarter and 57% on year during the March quarter while those of copper have fallen 2% on quarter but risen 41% on year.

According to Nomura, the company's earnings before interest and tax margin for unitary cooling products is expected to remain subdued at 8.1%, a decline of nearly 300 basis points on year due to limited price hikes and inflation in cost of commodities. The company's revenue from its projects business is expected to fall to 5% on year due to lower order book with EBIT margins at 6.7%, the brokerage said in a report. Voltas' earnings before interest, tax, depreciation, and amortisation is seen at INR 3.31 billion, according to the average of estimates of 12 brokerages.

YES Securities expects the company's revenue from its unitary cooling products segment to remain flat, if not fall, due to the company's inventory push ahead of Bureau of Energy Efficiency rating change in the December quarter. The company's electro-mechanical projects and services business is expected to grow 5% on year due to slower execution amid declining order book.

The room air-conditioning industry undertook price hikes of around 5% in the quarter to offset input cost inflation, and additional price increases will be required to fully absorb cost pressure, noted HDFC Securities in its pre-earnings report.

For the financial year 2025-26 (Apr-Mar), Motilal Oswal Financial Services Ltd. has the highest estimate for the company's net profit at INR 5.17 billion and Nirmal Bang Equities Pvt. Ltd. has the lowest estimate at INR 5.06 billion. Prabhudas Liladher has the highest estimate for the company's revenue at INR 145.45 billion and Motilal Oswal has the lowest estimate at INR 142.55 billion.

Market participants would watch for any signs of an uptick in demand, price hikes to be taken by the company due to the increase in raw material costs, and channel inventory when it announces its earnings on Thursday.

Out of the 12 brokerage reports on the company available with Informist, five have a "buy" or equivalent recommendation with an average target price of INR 1,485 apiece, five brokerages have a "hold" or equivalent call with an average target price of INR 1,435 apiece, and two brokerages suggest to "sell" the stock.

The stock is up nearly 3% since the company reported its December quarter earnings on Jan 29. On Wednesday, shares of the company closed 0.3% higher at INR 1,379.60 on the National Stock Exchange.

Following are the March quarter earnings estimates for Voltas Ltd. from 14 brokerages in descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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