Voltas Q1 Results: Profit Drops 58%, Margin Contracts
Revenue down 20% to Rs 3,938.58 crore.
Voltas Ltd.'s net profit plummeted 58% in the quarter ended June due to a decline in demand for cooling products, including air conditioners.
The company's bottom line declined to Rs 140.46 crore during the first quarter, compared to Rs 334.23 crore for the same period last year, according to an exchange filing on Friday.
The quarter witnessed unpredictable weather conditions, with summer season concluding abruptly due to early monsoon, the filing stated.
Voltas Q1 FY26 Highlights (Consolidated, YoY)
Revenue down 20% to Rs 3,938.58 crore versus Rs 4,921.02 crore.
Net profit down 58% to Rs 140.46 crore versus Rs 334.23 crore.
Ebitda down 58% to Rs 178.53 crore versus Rs 423.80 crore.
Margin at 4.5% versus 8.6%.
Segmental Revenue
The unitary cooling products of Voltas reported a top line of Rs 2,868 crore for the first quarter, compared to Rs 3,802 crore for the same period last year.
The company's electro-mechanical projects and services segment noted a revenue of Rs 922 crore for the April-June period, against Rs 949 crore for the year-ago period. Its engineering products and services portfolio posted a revenue of Rs 135 crore for the quarter under review from Rs 161 crore during the same period of the previous fiscal.
The first quarter of FY26 presented certain challenges, particularly due to unseasonal weather and shifting consumer sentiment, according to Chief Executive Officer Pradeep Bakshi.
Bakshi emphasised that though these factors impacted the company's seasonal product categories but its core strengths, market leadership, operational resilience and strategic agility remains intact.
Shares of Voltas closed 0.33% lower at Rs 1,304.9 apiece on the NSE, compared to a 0.95% fall in the benchmark Nifty. The stock has fallen 9.13% in the last 12 months and 27.1% on a year-to-date basis.
Out of the 41 analysts tracking the company, 25 have a 'buy' rating on the stock, 12 recommend 'hold' and four gave 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 8.2%.
