Voltas is engaged in the business of air conditioning, refrigeration, electro – mechanical projects as an EPC contractor both in domestic and international geographies (Middle East and Singapore) and engineering product services for mining, water management and treatment, construction equipments and textile industry.
Q2 FY26 Earnings Results
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Total Income: ₹2,411.93 crore, down 11.5% YoY and down 38.7% QoQ amid weak off-season sales and market headwinds.
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Revenue from Operations: ₹2,347 crore, down 10.4% YoY from ₹2,619 crore in Q2 FY25.
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Operating Profit (Excl. Other Income): ₹70.41 crore, plunging 60.6% YoY; operating margin compressed sharply to 3.04% from 6.24% last year, lowest in eight reported quarters.
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Net Profit (PAT): ₹32 crore, down 76% YoY and down 75.6% QoQ from ₹140.46 crore in Q1 FY26.
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PAT Margin: 1.36%, vs. 5.11% in Q2 FY25 and 3.59% in Q1 FY26.
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Gross profit margin also contracted to 4.97% from 9.77% YoY, reflecting competitive pressures and higher input costs.
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Employee cost rose 13% YoY, now 10.26% of sales as lower operating leverage weighed on profits.
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Interest expense rose 47% YoY, linked to working capital requirements and a higher long-term debt profile now at ₹382.28 crore.
Management Commentary & Strategic Insights
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Managing Director Mukundan Menon C P cited external challenges, including GST transition, low summer demand, and competitive intensity, as the catalysts for the disappointing results.
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Fundamentals remain strong as Voltas retains market leadership in room air conditioners and commercial cooling, with expectations for consumer demand revival as BEE efficiency transition and GST rollouts take effect in later quarters.
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Strategic priorities cited include margin recovery through cost discipline, optimizing the product mix, improved channel management, and technology adoption.
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The company maintains healthy balance sheet metrics and is prepared to leverage capital structure and low net debt for expansion once consumer demand returns.
Q1 FY26 Earnings Results
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Total Income: ₹3,938.58 crore, down 19.96% YoY from ₹4,921.02 crore.
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Net Profit (PAT): ₹140.46 crore, down 57.98% YoY from ₹334.23 crore in Q1 FY25.
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EBITDA: ₹178.53 crore, down 58% YoY, with EBITDA margin contracting to 4.5% from 8.6% YoY.
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Unitary cooling products revenue dropped 24.6% YoY, hampered by mild summer and early monsoon; Electro-Mechanical Projects segment was steady.
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Continued market leadership and cost control cited as positives, with management expecting a Q4 demand rebound
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.