Voltas shares are likely to remain in focus on Monday after the Tata Group company reported a strong first-quarter performance, with consolidated net profit rising 52% year-on-year andrevenueclimbing 19%. However, a revenue miss and continued weakness in some non-RAC businesses have prompted foreign brokerage Goldman Sachs to maintain its cautious stance on the stock.
Voltas reported a 52% YoY jump in consolidated net profit to Rs 213 crore for the quarter ended June 30, 2026, compared with Rs 141 crore in the corresponding period last year. Revenue from operations increased 19% year-over-year to Rs 4,673 crore, up from Rs 3,939 crore in Q1 FY26.
The standout performer was Voltas' Unitary Cooling Products segment, which posted a 32.3% YoY increase in revenue to Rs 3,794 crore from Rs 2,868 crore a year ago. The company said its Room Air Conditioner (RAC) volumes surged 45% year-over-year (YoY), significantly outperforming the broader industry and key competitors.
In a major milestone, Voltas sold 1 million Room Air Conditioners in just 81 days, underscoring the strength of its brand, product portfolio, distribution network and execution capabilities.
The company's RAC business also strengthened its market leadership. Voltas reported a 17.3% secondary market share for FY27 through June 2026, with its lead over the nearest competitor widening to around four percentage points as of June.
Segment performance mixed
While the cooling-products business delivered strong growth, other segments remained under pressure. Electro-Mechanical Projects and Services (EMP) revenue declined 27.1% YoY to Rs 672 crore from Rs 922 crore in the year-ago quarter. Meanwhile, Engineering Products and Services revenuerose 17.8% YoY to Rs 159 crore, compared with Rs 135 crore in Q1 FY26. Overall, Segment A, led by the RAC business, recorded robust growth of around 33%.
Adding to the company's strategic developments, Voltas on August 14 announced a binding term sheet with Atomberg Innovation, a material subsidiary of Atomberg Technologies, to establish a 50:50 joint venture. The proposed JV will manufacture high-efficiency Room Air Conditioner compressors and related compressor parts in India. The move could help Voltas strengthen its presence across the air-conditioning value chain while increasing its domestic manufacturing capabilities.
Goldman Sachs remains cautious
Despite the strong headline growth, Goldman Sachs has retained its 'SELL' rating on Voltasand lowered its target price to Rs 1,075 from Rs 1,140.
According to the brokerage, Voltas' 19% YoY sales growth in Q1 was still 8% below consensus estimates. EBITDA growth was stronger at 49% YoY, but remained 13% below Street expectations, indicating that operating performance was weaker than anticipated.
Goldman Sachs attributed the revenue shortfall largely to weakness in the EMP segment and non-room AC businesses, which offset the strong momentum in RACs. Higher input costs and rupee depreciation also weighed on margins. The brokerage has subsequently cut its EPS estimates for FY27 and FY28 by 7–8%.
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