Voltas shares plunge 8% as Q1 results miss estimates; should you sell?

Voltas shares fell 8 per cent after its June quarter earnings missed estimates, with its profit falling 58 per cent

Shares of Voltas slid nearly 8 per cent on Monday after its June quarter earnings missed estimates, with the bottom line plunging nearly 58 per cent as early monsoons dampened demand. 

 

The household appliances' stock fell as much as 7.96 per cent during the day to ₹1,201 per share, the biggest intraday fall since February 1 this year. The stock pared losses to trade 6.3 per cent higher at ₹1,221 apiece, compared to a 0.24 per cent advance in Nifty 50 as of 9:26 AM. 

 

Shares of the company fell for the fifth straight session and currently trade at 3.6 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 31.5 per cent this year, compared to a 3.3 per cent advance in the benchmark Nifty 50. Voltas has a total market capitalisation of ₹40,556.54 crore.   Track LIVE Stock Market Updates Here

 

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Voltas Q1 results 

The company's net profit fell nearly 58 per cent to ₹140.6 crore in the April to June quarter of the financial year 2026 (Q1FY26) from ₹334 crore a year ago. Revenue from operations also fell 20 per cent to ₹3,939 crore, steeper than what analysts were estimating.

 

"The onset of summer was delayed and the season concluded abruptly due to early monsoon," Voltas said in a press release. The steeper impact was driven by a high base a year ago, Voltas added, when "a harsh and prolonged summer drove record sales."

 

Revenue from the unitary cooling products segment declined to ₹2,868 crore from ₹3,802 crore, while the electro-mechanical projects and services business posted revenue of ₹922 crore, compared with ₹949 crore a year ago. The revenue from the engineering products and services segment stood at ₹135 crore, down from ₹161 crore.  

Analysts on Voltas Q1 earnings

Motilal Oswal said Voltas' Q1FY26 results came in significantly below estimates due to a weak showing in the Unitary Cooling Products (UCP) segment. 

 

The brokerage expects the company's revenue, Ebitda, and profit after tax to grow at a compounded annual rate of around 8 per cent, 12 per cent, and 15 per cent, respectively, over FY25-28. 

 

Analysts noted that demand recovery in the second half of FY26 will be critical, aided by the festive season and changes in energy rating norms. The brokerage maintained its Neutral rating on the stock with a target price of ₹1,350 per share. 

 

Antique Stock Broking remained positive on the long-term room air conditioner (RAC) under-penetration theme. However, it noted that the near-term moderation in demand following a mild summer prompted it to cut its FY26 and FY27 earnings per share (EPS) estimates by 15 per cent and 14 per cent, respectively.

 

Antique downgraded the stock to Hold from its earlier rating, with a revised target price of ₹1,450, down from ₹1,598.

 

Centrum Institutional Research said Voltas remains focused on cost engineering initiatives, with sustaining market leadership as its top priority. Factoring in the weak first-quarter performance, the brokerage cut its FY26 and FY27 EPS estimates by 17 per cent and 3 per cent, respectively. It retained its Add rating, with a revised target price of ₹1,455, up from ₹1,325 earlier.