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Earnings Call Transcript

Voltas Earnings Call Transcript: Key Takeaways

Voltas outperformed competition with 45% RAC volume growth, yet margins remain a major concern as input cost inflation and West Asia instability offset high-season gains.

Highlights
Revenue growth18% YoY growth driven by 45% surge in RAC volumes.
MarginsUCP margins stuck at 5.3%; high costs delaying target return to 7-8%.
Order bookSegment B order book stands at 6,345 crores; execution timing remains variable.
Demand visibilityStrong for cooling; channel inventory stable at four weeks.
Management confidenceCautious; acknowledging margin pressure despite massive volume and market share gains.

Growth

Revenue grew 18% YoY; RAC segment jumped 33%. Growth is purely volume-led via aggressive market share expansion.

Outlook

Aimed 7-8% UCP margins are now delayed. 50-50 compressor JV with Atomberg targeted for FY28 production.

Risks

EBITDA margins remain depressed at 5.3% due to inability to fully pass through 10-12% cost inflation.

Last quarter's promises, checked

Delivered

  • Guided progressive recovery in Q4 → delivered 18% revenue growth (= BEAT)
  • Guided leadership in cooling segment → delivered 45% volume surge (= BEAT)
  • Targeted March 2026 record sales → delivered highest-ever sales month (= BEAT)

Partly delivered

  • Guided inventory normalization → delivered 30-45 days channel inventory (= PARTIAL)
  • Guided cost reduction impact → delivered benefits offset by 10-12% inflation (= PARTIAL)

Missed

  • Guided FY25 margin levels (8.4%) → delivered 5.3% UCP margin (= MISS)
  • Targeted margin resilience → delivered 85 bps gross margin decline (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: VOLTAS. Summary written with AI assistance from the document.

Read the document ↗

Voltas Ltd: key numbers

Share price
₹1,118.20
Market cap
₹37,000 Cr
Revenue (annual)
₹14,244 Cr
Net profit (annual)
₹375.9 Cr
P/E (TTM)
82.4×Sector 45.9×
Promoter holding
30.30%+0.00% QoQ
FII holding
16.94%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Value
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