Voltas Navigating Headwinds; A Slow Start To FY26, Says HDFC Securities Maintaining 'Buy'

Voltas is focused on gaining market share and reducing losses, aiming to contain Beko Ebitdam at -5% in FY26. HDFC Securities models a compound annual growth rate of 10% for revenue, 15% for Ebitda, and 17% for adjusted profit after tax over FY25-27E. .NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.We attended Voltas Ltd.'s analyst group meeting on June 17 2025. Management noted a ~20-25% YoY room Air Conditioner volume decline across both the industry and company in April and May, due to the early monsoon onset. June has shown some recovery in some parts of the northern market. Current channel inventory remains high at 6-8 weeks for the company. Despite weak demand, prices have remained stable, although the industry is offering free installation and other incentives. The Electro-Mechanical Projects and Services is exercising caution regarding its international business, anticipating that growth in this region will take time. While domestic EMPS business is expected to register slow growth in FY26, it is expected to pick up in FY27. Beko JV has recorded growth in Q1 FY26 to date. The company is focused on gaining market share and reducing losses, aiming to contain Beko Ebitdam at -5% in FY26. We model a CAGR of 10% for revenue, 15% for Ebitda, and 17% for adjusted profit after tax over FY25-27E. We maintain Buy on Voltas with a lower SOTP target price of Rs 1,420/share (~40x Mar-27E EPS)..Click on the attachment to read the full report:.Voltas Shares Downgraded To 'Neutral' By Motilal Oswal— Weather Headwinds Hurt Demand; Recovery Defers.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Voltas Navigating Headwinds; A Slow Start To FY26, Says HDFC Securities Maintaining 'Buy'

Voltas is focused on gaining market share and reducing losses, aiming to contain Beko Ebitdam at -5% in FY26, adds the brokerage.

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