Voltas to Prioritize Domestic Market

Revision in AC Norms to Trigger Q3FY26 Pre-Buying

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Voltas' Q1FY26 performance is expected to be weak, primarily due to unseasonal rains and a high base in Q1FY25—key takeaways from the recent management call. Additional insights include: (i) Revenue declined 20-25% year-over-year in April-May 2025, though a sequential recovery was seen in June, particularly in North India, which contributes 35% of Voltas' revenue. (ii) Channel inventory currently stands at 4-6 weeks. While product discounts are absent for now, consumer schemes such as free installation have been introduced. (iii) The revision of the Bureau of Energy Efficiency's (BEE) norms for room air conditioners (RACs), effective January 2026, is expected to lead to 5% price hikes, which could drive pre-buying and trade stocking in Q3FY26. (iv) In the electromechanical projects segment (EMP) segment, Voltas is prioritizing domestic orders and expects incremen