Festival demand key for Voltas to recover from Q1 dip

Voltas' revenues for the April-June quarter (Q1) of FY26 were impacted badly by unseasonal rains.

- DEVANGSHU DATTA

A leader in domestic air conditioners (ACs), the company's revenues dipped 20 per cent year-on-year (Y-o-Y) to ₹3,940 crore. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 58 per cent Y-o-Y to ₹180 crore and the margin contracted 410 bp Y-o-Y to 4.5 per cent. PAT declined 58 per cent Y-o-Y to ₹140 crore. Depreciation and interest costs increased 38 per cent and 39 per cent Y-o-Y respectively.

Management of this Tata group home appliances maker highlighted that growth momentum turned adverse in May. The rains led to a drop in demand for ACs. Voltas said it believes this is temporary, and it is taking corrective actions, like cost-control measures, inventory realignment, and production adjustment. Management remains cautiously optimistic about a recovery in the upcoming festive season. It expects to close FY26 flat or with moderate growth.