Hold Voltas; target of Rs 1359: ICICI Securities

ICICI Securities recommended hold rating on Voltas with a target price of Rs 1359 in its research report dated September 21, 2025.

Broker Research

September 22, 2025 / 11:35 IST

Hold

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities research report on Voltas

The primary as well as secondary sales were impacted in Q2FY26 due to excess trade inventory at beginning of Q2FY26 and five weeks difference in announcement and implementation of GST reduction – that’s the chief takeaway from the management call. Other noteworthy takeaways: (1) Management is focusing on expansion of channel mix and strengthening the market shares in alternate channels. It is also focusing on driving cost efficiencies. (2) The channel stocking has remained elevated at ~3 months even now. (3) Voltas shall continue to support channels through Q2FY26 and Q3FY26, until inventory normalises. We believe the margins are likely to be under stress in Q3FY26. (4) Upcoming new BEE norms could lead to 3–5% price rise in three-star rated ACs, and a potentially higher hike for five-star ACs.

Outlook

We retain HOLD with a DCF-based revised TP of INR 1,359 (vs. INR 1,300 previously; implied target P/E at 47x FY27E EPS).

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