Voltas shares fell sharply on Monday after the company reported disappointing Q1FY26 earnings, hit by unseasonal weather and muted summer demand that hurt air conditioner sales. The stock dropped nearly 8% to an intraday low of ₹1,202.20 on the BSE before recovering slightly to trade 5.86% lower at ₹1,227.35 around 9:55 am.
The company’s net profit plunged 58% year-on-year to ₹140.6 crore, while revenue declined 20% to ₹3,938.6 crore. EBITDA halved to ₹178.6 crore, with operating margins narrowing sharply to 4.5% from 8.6% in the year-ago quarter. The Unitary Cooling Products segment, a key revenue driver, saw sales drop from ₹3,802 crore to ₹2,868 crore, and EBIT slumped from ₹327 crore to ₹104 crore.
Management attributed the weak performance to delayed summer conditions and early monsoon rains, which significantly dented air conditioner demand, alongside a high base effect from last year’s heatwave-driven surge. Despite this, Voltas retained its leadership position in both fixed-speed and inverter AC segments, leveraging its brand strength, wide distribution network, and diversified product portfolio.
Managing Director & CEO Pradeep Bakshi called the quarter a temporary setback, expressing confidence in long-term prospects driven by upcoming energy-efficiency regulations, continued product innovation, and expansion of sales channels. Analyst sentiment remains largely positive, with Trendlyne data showing an average price target of ₹1,387 — about 6% higher than current levels. Out of 36 analysts covering the stock, the consensus remains a “Buy.”
