Voltas (VOLT IN) – Analyst Meet Update – Moderate quarter ahead for RAC segment – HOLD
Published on 22 Sep 2025
We attended VOLT’s analyst conference call wherein the management highlighted its focus on regaining sales momentum in cooling products, diversifying into a full-stack appliances portfolio, and driving cost saving measures across the value chain to ensure sustainable margins. VOLT anticipates a softer recovery in RAC demand with GST rationalization and festive demand due to inventory accumulation in Q1FY26. VOLT maintains the top position in RAC segment (18% market share) and aims to be the top player in air coolers from current #2 spot. Price hikes are anticipated in Jan’26 in 3 and 5 star RAC products. We introduce FY28 numbers and estimate revenue/EBITDA/PAT CAGR at 9.7%/11.5%/14.9% over FY25-28E. The stock is currently trading at 42x/37x of FY27/FY28E. There is no change in our estimates and roll forward to Sep’27E, revise SOTP-based TP to Rs1,441 (earlier Rs1,268), implying PE of 40x Sep’27E earnings. Maintain ‘HOLD’.
