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Informist, Wednesday, Aug. 12, 2026

 

By Ruchira Kagita

 

MUMBAI – Voltas Ltd. is expected to post a healthy year-on-year jump in its net profit and sales for the June quarter, supported by a weak base and strong demand during the hotter-than-usual summer. While its earnings before interest, taxes, depreciation, and amortisation are also likely to benefit from a favourable base, higher input costs are likely to weigh on profitability. Among its three segments, unitary cooling products are likely to be the most affected due to the ongoing supply chain disruptions caused by the war in West Asia.

 

The Tata group consumer durables major is expected to report an over 44% on-year rise in its consolidated net profit to INR 2.03 billion, according to the average of estimates from 13 brokerages. The highest estimate for profit is INR 2.4 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 1.68 billion from 360 ONE Capital Market Pvt. Ltd. Its profit is expected to surge 74% on quarter.

 

The company's revenue from operations is likely to increase around 28% on year and over 3% sequentially to INR 50.58 billion. The estimates for revenues vary between a low of INR 49.13 billion from Anand Rathi Share and Stock Brokers Ltd. and a high of INR 53.61 billion from Nomura Equity Research.

 

Voltas had said it sold a record one million room air conditioners in the first 81 days of Apr-Jun, supported by its diversified portfolio across the budget, mid-tier, and premium products. It had also amplified its consumer engagement through a campaign featuring artificial intelligence-enabled products, the company said.

 

The company likely gained significant strength in volumes in the June quarter, supported by a favourable base, analysts said. Going ahead, the company is confident of its inventory levels sustaining even in a high-demand scenario. Its channel inventory of its unitary products is probably closer to 30 days, the company said in May.

 

This summer, consumers searched for air conditioners of Voltas and Daikin Airconditioning India Pvt. Ltd. the most, SMIFS Ltd. said after its channel checks across major markets in July. Voltas was dealers' top recommendation in the value-for-money segment, SMIFS said.

 

COST PRESSURES

Voltas witnessed "double-digit inflation" and these high costs will eventually be passed on to consumers, the company had said in May. "...we will be open to sort of pass on any further price increases that need to be done," Chief Financial Officer K.V. Sridhar said. As of May, the company did not have any of its clients in its mechanical, electrical, and plumbing solutions vertical call force majeure due to war-linked disruptions. This segment is unlikely to have its margins hit, the company said.

 

Voltas had hiked the prices of its room air conditioners rated "3-star" by 5% and "5-star" units by 10%. It also undertook a 2-3% increase in prices for its products on account of high copper prices.

 

India's largest air conditioner manufacturer is likely to post an EBITDA of INR 2.89 billion for the reporting quarter, as per the average of 11 estimates. A low base is expected to support its EBITDA growth, according to analysts. For the year-ago quarter, Voltas' EBITDA was around INR 1.8 billion, as per most brokerages' calculations.

 

On the margin front, Voltas is anticipated to report an on-year and sequential expansion given that the adverse impact of the rise in raw material costs and depreciation of the rupee are unlikely to come through in the June quarter, analysts said. The price hikes the company undertook are also seen supporting its margins. The company's June quarter EBITDA margin is seen between 4.5% and 6.3%, compared with 4.5% for both Jan-Mar and the year-ago quarter, according to brokerages.

 

For the consumer durables industry, the second half of the financial year 2026-27 (Apr-Mar) is expected to be better given the higher likelihood of supply chain disturbances easing out. "Most companies have only partially passed RM (raw material) inflation through price hikes and reduction of channel incentives, which is likely to weigh on gross margins," Kotak Securities Ltd. said.

 

In the long term, Voltas expects its primary sales of room air conditioners to grow 15-20% on year, Managing Director Mukundan Menon had told analysts. The company had sold 14.3 million units across its brands in FY26, he said.

 

Voltas will release its earnings for the June quarter Friday. Shares of the company closed at INR 1,280 apiece on the National Stock Exchange, almost 1% higher than Monday. The stock is up more than 4% since it detailed its March quarter earnings.

 

Of the 12 brokerage reports on the company available with Informist, five have a "buy" recommendation with a target price of INR 1,409 per share. This implies an upside of almost 10% from the stock's closing price Friday. Four brokerages have a "hold" recommendation and three have a "sell" call.

 

Following are the June quarter earnings estimates, in INR billion, for Voltas from 13 brokerages in descending order of net profit:

 

Brokerage	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd.	50.03	2.40	3.44
Bank of America Global Research	51.08	2.20	2.83
JM Financial Institutional Securities Pvt. Ltd.	49.21	2.14	2.26
Kotak Securities Ltd.	52.06	2.09	3.19
PhillipCapital (India) Pvt. Ltd.	49.37	2.04	3.04
Nuvama Wealth Management Ltd.	49.94	2.04	3.14
Nomura Equity Research	53.61	2.03	3.07
HDFC Securities Ltd.	52.06	2.01	3.10
Nirmal Bang Equities Pvt. Ltd.	51.20	1.96	2.59
YES Securities (India) Ltd.	50.06	1.94	2.96
Elara Securities (India) Pvt. Ltd.	49.87	1.93	2.19
Anand Rathi Share and Stock Brokers Ltd.	49.13	1.92	-
360 ONE Capital Market Pvt. Ltd.	49.96	1.68	-
Average	50.58	2.03	2.89

 

End

 

Edited by Shubhayan Bhattacharya

 

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