Voltas earnings on ice with Q1 chill

Slow room AC sales push analysts to trim FY26/27 estimates

- TANMAY TIWARY

Brokerages have turned cautious on room air conditioner (RAC) market leader Voltas, downgrading the stock and cutting 2025-26 (FY26) RAC and 2026-27 (FY27) earnings estimates.

While the company posted strong January-March quarter (Q4) and full-year 2024-25 (FY25) performance, multiple near-term headwinds have led to the downgrades.

On the bourses, Voltas shares fell up to 2.39 per cent to hit an intraday low of ₹1,261.65 per share on Wednesday. It ended the day at ₹1,289, almost unchanged from the previous close.

In a recent analyst meeting, the management flagged a sharp slowdown in the RAC segment during the ongoing first quarter (Q1) of FY26.

According to JM Financial, Voltas and the overall RAC industry saw a 20-25 per cent year-on-year volume decline in April and May, primarily due to unseasonal weather.

While a modest recovery is underway in June, the brokerage expects Q1 to remain weak. It added that the margin outlook for the unitary cooling products (UCP) segment remains under pressure and has not yet bottomed out.