Voltas shares reverse early fall as brokerages remain bullish on positive Q4 show

Over the past year, shares have fallen around three percent in trade.

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26 Aug, 2025 12:21

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Consumer durables player Voltas Ltd.'s shares gained in a muted market, on May 9, snapping early losses despite posting a good March quarter performance.

Voltas’ total revenue grew by 13 percent YoY to Rs 4770 crore, aided by 17 percent YoY growth in the UCP (Unitary Cooling Products) segment. Despite multiple cost headwinds, margin gains were likely driven by price hikes, improved product mix, and scale benefits.

While topline performance was sub-par, UCP EBIT margins stood out at 10 percent (+82 bps YoY) – the highest since Q4FY23.The project business, however, slipped back into the red due to provisioning for receivables in the international project division. EBITDA surged by 75 percent YoY to Rs 330 crore.

At 1 pm, shares were quoting Rs 1,234.3 apiece, higher by 0.9 percent on the NSE.

The company achieved record-high air cooler sales in FY25, with volumes surging over 70 percent YoY to exceed 50 lakh units. Voltas captured 8.5 percent of market share in this segment. Presently, the management has no plans to raise prices in the RAC (Room Air Conditioners) category but is open to respond if market conditions alter.

The unseasonal rains in certain sections of the country cause secondary sales to take a hit in the initial few days (30-40 days) of the summer season, as per Motilal Oswal. An extended summer season is anticipated, which should help compensate for the volume lost.

The festive season could also consolidate secondary sales for the industry, and push the industry towards a strong finish to the year despite a weak summer.

Motilal Oswal reiterated ‘Buy’ with a revised target price of Rs 1,600 for Voltas.They retained their EPS for FY26E/FY27E, however, cut the valuation multiple for the UCP segment to 45x FY27E EPS (from 50x), owing to uncertainty surrounding the summer season.

HDFC Securities, too, upgraded Voltas to ‘Buy’ from ‘Add’ with a target price of Rs 1,505, valuing the company at 40x Mar-27E EPS, as the company exited the fourth quarter with strong primary demand in anticipation of a scorching summer, resulting in higher channel filling.

Meanwhile, Nuvama downgraded Voltas to ‘Hold’ with a revised target price of Rs 1,250 due to limited upside and Equirus Securities maintained ‘Add’ with target price of Rs 1,315 per share.

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