Voltas shares decline 8% after Q1 profit slumps 58% YoY on weak AC sales

Voltas shares slumped 7.8% to their intraday low of Rs 1,202.20 on the BSE on Monday after the company reported a steep 58% year-on-year (YoY) drop in net profit to Rs 140.6 crore for Q1FY26, as unseasonal weather and muted summer demand hit cooling product sales.

Revenue fell 20% YoY to Rs 3,938.6 crore, while EBITDA halved to Rs 178.6 crore. Operating margins contracted sharply to 4.5% from 8.6% a year earlier.

Management attributed the decline to a delayed summer and early monsoon, which dented air-conditioner sales. A high base effect from last year, when prolonged heat waves spurred record demand, further amplified the fall.

Despite the setback, Voltas retained its market leadership in both fixed-speed and inverter AC segments, supported by its strong brand presence, extensive distribution network, and diversified portfolio. The Unitary Cooling Products (UCP) segment posted revenue of Rs 2,868 crore and EBIT of Rs 104 crore, down sharply from Rs 3,802 crore and Rs 327 crore in Q1FY25.

MD & CEO Pradeep Bakshi termed the weak quarter a one-off and expressed confidence in long-term growth, citing upcoming energy-efficiency norms, product innovation, and channel expansion.

Voltas shares price target

According to Trendlyne data, the average target price for the stock is Rs 1,387, indicating an upside of 6% from current market prices. The consensus recommendation from 36 analysts for the stock is a 'Buy.'

Technically, the stock’s Relative Strength Index (RSI) stands at 40.8. An RSI below 30 indicates an oversold condition, while above 70 signals overbought levels. The Moving Average Convergence Divergence (MACD) is at -0.2, which is below both its signal line and the center line, considered a bearish indicator.

Voltas shares are currently trading below their 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

Voltas shares price performance

On Friday, Voltas shares closed 0.3% lower at Rs 1,303.7 on the BSE, while the Sensex fell 0.95%. The stock has dropped 29% year-to-date but is up 59% over the past two years. Market capitalisation stands at Rs 43,137 crore.

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