Neutral Voltas; target of Rs 1390: Motilal Oswal

Motilal Oswal recommended Neutral rating on Voltas with a target price of Rs 1390 in its research report dated December 18, 2025.

Broker Research

December 19, 2025 / 13:40 IST

Neutral

Motilal Oswal's research report on Voltas

We interacted with management of Voltas (VOLT) to understand the current demand trend, channel inventory, the likely impact of upcoming energy label changes and the overall recovery in home appliances business. VOLT 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. Voltas Beko continues to outperform, gaining market share and nearing the number one position in semi-automatic washing machines. In EPM segment, domestic project business is doing well, with a steady margin given good selection in projects.

Outlook

Currently, we are maintaining our earnings estimates and closely monitoring the pickup in RAC demand and normalization of inventory. We maintain our Neutral rating on the stock with a TP of INR1,390, based on SoTP.

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