Looking ahead, Voltas’ financial trajectory appears promising on a low base. The report projects revenue/Ebitda/PAT CAGR of 13%, 34%, and 41% over FY26–28, supported by improved operating leverage and margin recovery in the unitary cooling products segment.
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Motilal Oswal Report
Motilal Oswal has reiterated its 'Neutral' rating on Voltas Ltd. with an unchanged target price of Rs 1,390, implying a marginal downside from the current market price of Rs 1,402.
The brokerage notes that while structural drivers for room air conditioners remain intact, near-term challenges persist due to elevated channel inventory and muted demand trends.
Valuation and view
Management is confident of a positive demand outlook, citing strong growth divers (GST reduction increasing affordability, low penetration, robust demand expected from tier II- IV cities and energy label changes). It is also expanding its capabilities in centrifugal chillers.
India’s manufacturing expansion, including significant investment by large conglomerates, is creating stable project demand opportunities. Meanwhile, the upcoming energy label changes and the summer season are expected to act as critical catalysts for a rebound in cooling product demand, highlights the brokerage.
Looking ahead, Voltas’ financial trajectory appears promising on a low base. The report projects revenue/Ebitda/PAT CAGR of 13%, 34%, and 41% over FY26–28, supported by improved operating leverage and margin recovery in the unitary cooling products segment. UCP margins are expected to strengthen in H2 FY26 and FY27 as demand rebounds and cost optimisation initiatives take effect.
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