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Voltas share price rose 2.5% on Monday, 9 November, after the Tata Group company reported a strong performance for the September quarter of FY27. Air conditioning and cooling solutions maker Voltas Ltd posted a 51.4% year-on-year (YoY) increase in consolidated net profit to ₹47.71 crore in Q2 FY27, compared with ₹31.5 crore in the corresponding quarter last year.
Revenue from operations grew 15.3% YoY to ₹2,706.57 crore in the September quarter, against ₹2,347.32 crore a year earlier, according to the company's regulatory filing.
Voltas share price today closed 2.69% higher at ₹1,088 apiece on the BSE.
Revenue from Voltas' Unitary Cooling Products segment, which includes its room air conditioner business, increased 29% to ₹1,566.79 crore in Q2 FY27 from ₹1,215.13 crore in the year-ago quarter.
The company attributed the growth primarily to its Room Air Conditioner business, which significantly outperformed the broader industry.
Voltas said it continued to consolidate its position as India's No. 1 room air conditioning brand, with a year-to-date market share of 17.4% as of September 2026. It maintained a 4.2 percentage-point lead over its nearest competitor, reflecting its market presence, consumer preference and distribution strength.
Revenue from the Electro-Mechanical Projects and Services segment declined 15.5% YoY to ₹816.39 crore in Q2 FY27.
However, the company said the business continued to maintain order momentum, supported by opportunities across infrastructure, industrial and institutional projects.
Domestic Projects secured orders across industrial infrastructure, electronics manufacturing, metro and tunnel projects, and data centres. The segment's carry-forward order book stood at more than ₹6,800 crore as of 30 September 2026, providing revenue visibility across domestic and international projects.
Meanwhile, revenue from the Engineering Products and Services segment increased 33.32% to ₹185.39 crore, supported by growth in Mining and Construction Equipment and Textile Machinery.
Voltas' joint venture, Voltbek Home Appliances, between Voltas and Turkish company Arcelik, delivered another quarter of growth, recording its highest-ever Q2 sales.
The company attributed the performance to an improving product mix, market share gains and continued expansion of its distribution network.
Voltbek reported year-to-date market shares of 8.8% in washing machines and 7% in refrigerators. It continued to expand its portfolio with new Frost Free Refrigerators and Fully Automatic Washing Machines, alongside sharper product segmentation and wider distribution.
Voltas' total expenses increased 13% YoY to ₹2,622.05 crore during the quarter. Total income rose 13.85% to ₹2,746.08 crore.
For the first half of FY27, the company's consolidated total income increased to ₹7,510.82 crore from ₹6,432.58 crore in the corresponding period last year.
Commenting on the performance, Voltas Managing Director Mukundan Menon C P said Q2 FY27 reflected continued progress across the company's businesses, led by its Room Air Conditioner segment, which recorded 32% volume growth during the quarter.
He added that Voltbek continued to gain scale and market share, while the Projects business maintained a healthy order book and disciplined execution.
ICICI Securities remains positive on Voltas, supported by its leadership in the room air conditioner (RAC) market, improving margin recovery and a healthy order book. The brokerage has maintained its ADD rating but revised its DCF-based target price to ₹1,160 from ₹1,200 earlier, implying an upside of around 6% from the current market price of ₹1,099. The revised target values the stock at 40 times its FY28 estimated earnings per share (EPS).
Nuvama Institutional Equities said Voltas' Q2 FY27 EBITDA missed its estimates and Street expectations by 56% and 58%, respectively, largely due to weak margins in the Unitary Cooling Products (UCP) and Electro-Mechanical Projects (EMP) segments.
Despite a 32% year-on-year surge in RAC volumes, steep raw material costs pushed the segment into an EBIT loss of ₹3 million. Voltas expanded its market share to 17.4%, maintaining a 4.2 percentage-point lead over its nearest competitor.
The brokerage noted that Voltas remains focused on gaining market share while improving absolute profitability. It added that suboptimal channel inventory levels could support a strong fourth quarter, according to the company's management.
Nuvama has cut its FY27 and FY28 EPS estimates by 4% and 6%, respectively, to factor in margin pressures. It has retained its HOLD rating while revising its December 2027 target price to ₹1,250 from ₹1,220 earlier. At the current market price, the stock trades at 41.6 times its FY28 estimated EPS.
Emkay Research said Voltas' management remains focused on sustaining market leadership, improving absolute profitability and strengthening cost competitiveness. Although the second quarter is seasonally weak, the management expects a strong second half of FY27, supported by healthy demand, an extended summer, premiumisation and customer loyalty.
The brokerage noted that channel inventory remains lean at around three weeks, compared with four to six weeks a year ago, which could support further growth.
Emkay highlighted that developments in West Asia, higher commodity prices, a near doubling of ocean freight rates and currency depreciation have resulted in an overall cost impact of around 18% over the past six months.
Voltas implemented calibrated price hikes of around 14% during Q2, including increases linked to energy-label changes, followed by another 5–7% hike in October 2026. However, with around 35% of sales to trade partners operating under four-to-five-month price locks, the full benefit of these increases is expected to flow through with a lag, with a larger impact likely in Q4.
Emkay has largely retained its FY28 and FY29 EPS estimates, citing attractive valuations. The brokerage has maintained its BUY rating and unchanged sum-of-the-parts (SoTP)-based target price of ₹1,500 for September 2028.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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