Brokerages cut EPS estimates, downgrade Voltas on weak RAC demand outlook

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

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