Hold Voltas: target of Rs 1300: ICICI Securities

ICICI Securities recommended hold rating on Voltas with a target price of Rs 1300 in its research report dated August 11, 2025.

Broker Research

August 14, 2025 / 11:00 IST

Hold

ICICI Securities's research report on Voltas

Voltas’ Q1FY26 performance was weighed down by softer summer product sales, following an unusually early monsoon. Even so, Voltas maintains its leadership in the RAC segment. Takeaways: (1) The company refrained from price cuts/discounting for market share gains. (2) Softer demand for RAC led to lower capacity utilisation at its Chennai plant, impacting margins. (3) Voltas Beko (VoltBek) continued to gain market share aided by operational efficiencies, multi-channel traction and improved retail visibility. (4) The company continues to expand its non-seasonal portfolio to reduce seasonality risk. We believe, the company could benefit from NPD (AI-enabled series in RAC), cost discipline and the upcoming festive demand; however, elevated summer inventory in the channels may cap rest of FY26. We downgrade the stock as we model relatively weaker FY26.

Outlook

We trim our FY26–27E earnings estimate by 7.0%–14.7% to factor in the weak Q1FY26 results. Downgrade to HOLD (from ADD) with a DCF-based revised TP of INR 1,300 (earlier INR 1,358; implied target P/E at 45x FY27E EPS).

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