Voltas reported a 51.3 per cent increase in consolidated net profit to \u20b9212.76 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\u2019s Q1FY27 results.<\/p>\n
The stock ended 4.06 per cent lower at \u20b91,267 on the NSE after moderating between \u20b91,256.10-\u20b91,350 compared to the previous close of \u20b91,320.50.<\/p>\n
Voltas reported a 51.3 per cent increase in consolidated net profit to \u20b9212.76 crore in the first quarter of the current fiscal, led by a strong performance in the room air conditioners segment.<\/p>\n
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.<\/p>\n
Citi retained a buy rating on Voltas with a target price of \u20b91,550. 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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
UBS retained a buy rating with a target price of \u20b91,560. 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.<\/p>\n
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.<\/p>\n
UBS said Voltas\u2019 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.<\/p>\n
CLSA retained its underperform rating on Voltas with a target price of \u20b91,160. It said first-quarter EBITDA was largely in line with its estimate, supported by strong, industry-leading growth in room air-conditioners.<\/p>\n
However, margins were low despite strong volume growth and price increases amid commodity inflation, CLSA said. It noted the company\u2019s JV with Atomberg to manufacture compressors, with capacity of 2.8mt units.<\/p>\n
While the street is likely to take the robust growth numbers positively, low growth in projects and margin concerns remain, according to CLSA.<\/p>\n
Nomura retained a neutral rating with a target price of \u20b91,357. It said Q1FY27 EBITDA was in line with consensus, with the focus on growth.<\/p>\n