The shares of Voltas dropped nearly 3 percent on December 19 after the after the air-conditioner maker's analyst group meeting as the brokerages anticipate subdued demand.
The shares of the popular air conditioner-maker dropped to Rs 1,364.50 apiece, the lowest level seen by the stock in four sessions. The shares later pared some losses to close 2 percent lower at Rs 1,372.60 apiece.
After the company's analyst group meeting, HDFC Securities noted that demand will likely stay subdued in Q3, with cost pressure rising. The domestic brokerage expects the company's growth to remain subdued in FY26, but a pick-up is expected from FY27. It has cut its FY26 revenue estimates by 3-4 percent.
Antique Stock Broking said that elevated channel inventory continues to act as near-term overhang. Nirmal Bang meanwhile said that the company’s management indicated volume pressures are easing, and operations will likely normalise from Q4.
Voltas is “getting comfortable, not cosy”, said domestic brokerage JM Financial. “The key message from Voltas’ investor call was that while the situation is clearly improving, it is not yet time to rejoice. Management commentary indicated that while the industry could see a decline in 3Q, the decline should be < 2Q, on account of pre-buying from the channel due to the energy rating changes w.e.f. 1 st Jan’26,” the domestic brokerage said.
An increase in input costs, a depreciating rupee and continued channel support could dampen margin through Q3, it added.
JM Financial increased its target price for the stock to Rs 1,450 per share from Rs 1,430 per share, while maintaining its ‘Add’ rating. The latest target price implies a downside potential of more than 3 percent from the stock’s previous closing price of Rs 1401.7 per share.
Motilal Oswal Financial Services kept a 'Neutral' rating on the stock, with a target price of Rs 1,390 per share which implies a downside potential of around 1 percent from the stock's previous closing price.
"Voltas highlighted that RAC volume remained under pressure in 3QFY26 due to higher channel inventory (~45 days) and a strong winter, though the YoY decline has moderated and there are multiple levers (GST rate cut increase affordability, energy label changes) to drive demand going forward," it added.
Elara Capital kept an ‘Accumulate’ rating on the stock, with a target price of Rs 1,440 per share. This implies an upside potential of nearly 3 percent from the stock’s previous closing price.
The domestic brokerage remains cautious on the company’s near-term outlook. “Revenue from Voltas’ room air conditioner (RAC) segment may rise QoQ, led by pre -buying in December, given a sharp rise in commodity prices (copper price up 27% YoY) and change in Bureau of Energy Efficiency (BEE) norms from January. However, overall RAC revenue may fall, and margins strained by lower volumes, higher commodity prices and rupee depreciation,” it added.
Voltas share price history:
Voltas shares have fallen more than 2 percent in the past one month, and around 25 percent in 2025 so far. This comes after the stock gained more than 61 percent in the past three years.
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