Voltas shares nosedive 13% on weaker-than-expected Q3 numbers

Voltas shares are already down over 27 percent in the year so far.

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26 Aug, 2025 12:21

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Shares of Voltas plummeted 13 percent on January 30, bogged down by the company's weaker-than-expected earnings performance in the December quarter.

The company turned back into the black with a net profit of Rs 132 crore, a sharp turnaround from a net loss of Rs 30 crore that it recorded in the same quarter of the previous fiscal year. Revenue also grew 18 percent on-year to Rs 3,105 crore, up from Rs 2,626 crore a year ago.

Despite jumping back into profits, the company's bottomline still missed CNBC-TV18's estimated Rs 155 crore whereas revenue topped expectations of Rs 3,015 crore.

Operational performance also missed expectations as Q3 EBITDA margin of 6.4 percent came below the estimated 7.1 percent. Meanwhile, it was the decline in margins for the company's Unitary Cooling Products (UCP) segment that hurt investor sentiment. UCP’s margin came at 5.9 percent in Q3, the lowest in 10 years.

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Regardless of that though, Motilal Oswal Financial Services highlighted the strong revenue growth for Voltas' UCP business as room air conditioner demand remained healthy in Q3.

On that account, MOFSL awaits the management’s commentary on lower margins in the UCP segment, channel inventory before the start of the summer season, and the outlook for
Voltbek margins. The brokerage has a 'buy' call on the stock, however, it will review its assumptions after the company's post-earnings call later today.

At 09.54 am, shares of Voltas were trading at Rs 1,317 on the NSE. The fall in the stock was also exacerbated by a surge in trading volumes in the counter. As much as 23 lakh shares of the company changed hands on the exchanges so far, already more than double the one-month daily traded average of 10 lakh shares.

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