Tata Group firm Voltas Ltd, on Friday, reported mixed earnings for the first quarter of FY27, with strong revenue growth owing to robust performance of the Unitary Cooling Products (UCP) segment, which was dragged down by the Electro-Mechanical Projects and Services (EMPS) segment.
Voltas reported a net profit of Rs 214 crore in the quarter ended June 2026, registering a growth of 52.2% from Rs 140 crore in the corresponding quarter last year.
The company’s revenue in Q1FY27 grew 18.7% to Rs 4,673.5 crore from Rs 3,938.6 crore, year-on-year (YoY).
At the operating level, EBITDA during the June quarter increased 48.7% to Rs 265.5 crore from Rs 178.5 crore, while EBITDA margin improved to 5.7% from 4.5%, YoY.
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Voltas said its UCP segment delivered a growth of 33%, led by a dominant performance in the Room Air Conditioner business. RAC volumes grew 45% YoY, significantly outperforming the industry and key competitors.
However, revenue from Electro-Mechanical Projects and Services was down 27.12% YoY to Rs 671.81 crore in the first quarter of FY27.
Voltas also announced signing of a Binding Term Sheet with Atomberg Innovation Private Limited, a material subsidiary of Atomberg Technologies Limited, to establish a Joint Venture for the manufacture of high efficiency Room Air Conditioner compressors and parts related to such compressors in India.
Brokerages were mixed on Voltas Q1 results. Nomura has slashed Voltas share price target, and expects high competition to weigh on Voltas’ margin recovery. On the other hand, Jefferies has raised its target on the stock.
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Here’s what brokerages have to say on Voltas Q1 results:
Nomura
- Maintain ‘Neutral’; Cut target price to Rs 1,357 from Rs 1,368
- Risks to margin recovery from high competition.
- Q1 EBITDA in line with consensus.
- Focus on growth, high competition to delay margin recovery.
Jefferies
- Maintains Buy; raises target price to Rs 1,580 from Rs 1,530
- RAC market share gained sharply to 17.3% from 15.9%, with volumes up 44% and channel inventory normalised to ~4 weeks.
- Voltas plans a 50:50 JV with Atomberg to manufacture ~2.5 million RAC compressors over 1.5-2 years.
- JV with Atomberg aimed at securing supply amid import restrictions.
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