Cooling Products See Sharp Decline; Company Expects Rebound Ahead
Voltas reported a steep 74.4 per cent year-on-year fall in net profit for the September quarter, which came in at Rs 34 crore. Revenue for the period declined 10.4 per cent from a year earlier to Rs 2,347 crore, missing the Street’s estimate of Rs 2,462 crore.
The company said subdued summer demand and a Goods and Services Tax (GST)-driven postponement of purchases weighed on sales and profitability.
Ebitda fell 56.6 per cent to Rs 70 crore, against expectations of Rs 104 crore. Operating margins narrowed to 3 per cent, compared with 6.2 per cent a year earlier.
During the first half of FY26, consolidated income stood at Rs 6,433 crore, lower than Rs 7,726 crore a year ago. Profit before tax dropped to Rs 257 crore from Rs 657 crore, while net profit for H1 came in at Rs 172 crore, compared with Rs 468 crore in the corresponding period of the previous fiscal.
External Pressures During Q2
Voltas said the quarter was shaped by weak seasonal demand and GST-led deferment, both of which affected retail momentum and margins. “The second quarter of FY26 was marked by external challenges, but our fundamentals remain strong.
The GST reduction and upcoming BEE efficiency transition will unlock pent-up consumer demand in the upcoming quarters,” said Voltas Managing Director Mukundan Menon.
Cooling Products Under Pressure
Revenue from the unitary cooling products division, which includes room air conditioners, dropped 23.2 per cent to Rs 1,215.13 crore, against Rs 1,582.19 crore last year. “The segment faced muted retail offtake due to the lag effect of early monsoon and GST rate reduction (from 28% to 18%), which led to deferred purchases and higher channel inventory”, the company said.
Margins were temporarily impacted by higher marketing outlays and lower absorption at the new Chennai and Waghodia plants.
Projects Business Cushions Performance
Revenue from electro-mechanical projects and services rose 9.8 per cent year-on-year to Rs 966.17 crore, supported by ongoing domestic project execution across mechanical, electrical and plumbing (MEP), water, electrical and solar verticals.
Overseas operations also remained steady. This segment helped offset the seasonality in the cooling division.
Engineering Division Steady
Engineering products and services revenue fell 5.22 per cent to Rs 139.05 crore. Voltas said the division continued to demonstrate operational stability, driven by consistent performance in mining and construction equipment and strong delivery in textile machinery. After-sales service remained a key contributor to profitability, it added.
