Voltas reported a 51.3 per cent increase in consolidated net profit to ₹212.76 crore in the first quarter of the current fiscal.
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Voltas shares reversed early gains and settled 4 per cent lower on Monday after brokerages gave mixed reactions to the company’s Q1FY27 results.
The stock ended 4.06 per cent lower at ₹1,267 on the NSE after moderating between ₹1,256.10-₹1,350 compared to the previous close of ₹1,320.50.
Voltas reported a 51.3 per cent increase in consolidated net profit to ₹212.76 crore in the first quarter of the current fiscal, led by a strong performance in the room air conditioners segment.
The company said it has increased market share and margins have improved. It also said Q2 will be better as room AC sales will be good.
Citi retained a buy rating on Voltas with a target price of ₹1,550. It said RAC volume grew 45 per cent y-o-y, twice the industry growth, leading to a 17.3 per cent secondary market share for YTD June FY27. The market share lead over the nearest competitor was 4 percentage points, while margins remained subdued at 5.3 per cent, up 168 basis points y-o-y.
Voltas has also signed a JV agreement with Atomberg Innovation to develop and manufacture high-efficiency RAC compressors in India, with capacity of 2.8mn units. Commercial production is expected in 18 months.
Citi said management highlighted a total cost increase of 10-12 per cent, comprising 7-8 per cent from rating/table changes and 4-5 per cent from commodity, currency, freight and other factors. Voltas has already passed on most of the increase and may reduce some channel schemes to improve margins.
UBS retained a buy rating with a target price of ₹1,560. It said revenue and EBITDA missed UBS estimates by 10 per cent, while PAT beat Street estimates by 4 per cent on higher other income.
UBS said secondary sales in the RAC industry grew 15 per cent y-o-y in Q1FY27, while primary sales grew 20-22 per cent in volume terms and 25-26 per cent in value terms. Channel inventory was around 4 weeks, with dealers keeping a cautious stocking approach.
UBS said Voltas’ JV with Atomberg is targeting capacity of 2.8 million units. In Voltas Beko, FY27 EBITDA breakeven may slip by a few quarters due to commodity inflation.
CLSA retained its underperform rating on Voltas with a target price of ₹1,160. It said first-quarter EBITDA was largely in line with its estimate, supported by strong, industry-leading growth in room air-conditioners.
However, margins were low despite strong volume growth and price increases amid commodity inflation, CLSA said. It noted the company’s JV with Atomberg to manufacture compressors, with capacity of 2.8mt units.
While the street is likely to take the robust growth numbers positively, low growth in projects and margin concerns remain, according to CLSA.
Nomura retained a neutral rating with a target price of ₹1,357. It said Q1FY27 EBITDA was in line with consensus, with the focus on growth.
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