GST Cut Buzz Lifts AC Stocks: Blue Star, Voltas, Symphony Gain Up to 7%
- 18th August 2025
- 03:30:00 PM
- 2 min read
Mumbai | August 18 – AC stocks rally on GST reform hopes: Shares of Blue Star, Voltas, Symphony, Amber Enterprises and Dixon Technologies surged on Monday, August 18, after Prime Minister Narendra Modi announced sweeping reforms in the Goods and Services Tax (GST) structure during his Independence Day speech.
GST reform and AC prices
The government has proposed reducing tax slabs to 5% and 18%, eliminating the 12% and 28% categories. Under the new system, air conditioners will move from the 28% slab to 18%, a change that could reduce AC prices by ₹1,500–₹2,500.
PL Notes tax cut could boost festive season demand, improve AC penetration in tier-2 and tier-3 cities, and accelerate the shift towards energy-efficient premium AC models.
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AC stocks in focus: How shares are trading
As 2:45 pm , Blue Star share price jumped 7.51% to ₹1,920 on the NSE, while Voltas share price rose 6.33% to ₹1,355. Symphony stock traded 3% higher at ₹972.90.
Peers also participated in the rally:
- Amber Enterprises share price surged 7.5% to ₹7,408
- Dixon Technologies stock advanced 3.5% to ₹16,749
- Johnson Controls-Hitachi stock was up 1.8% at ₹1,753.20
- Epack Durable stock climbed 4% to ₹376.60
On the sectoral front, the BSE Consumer Durables index was up 3.27% at 60,992.86, while the BSE Consumer Discretionary index gained 3.03% at 9,815.38.
The announcement triggered broad-based buying across consumer durables, auto and FMCG stocks, as investors bet on a demand revival from lower GST rates, recent income tax reliefs and falling interest rates.
Voltas fundamentals post-GST
According to Prabhudas Lilladher Research, Voltas reported a 20% year-on-year revenue decline in Q1FY26, with margins pressured by promotional expenses and weak volumes. However, the company expects a rebound in the second half of FY26 driven by festive demand, channel inventory correction, and improved cost structures.
PL Capital maintains a HOLD rating on Voltas with a target price of ₹1,268, while highlighting that the GST cut on ACs could act as a significant growth catalyst for the cooling products segment.
Also Read: ITC, Godfrey Philips, VST Industries Shares Decline as GST Reforms Keep 40% Levy on Cigarettes
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
