Voltas (VOLT IN) – Analyst Meet Update – RAC downcycle persists with margin pressure – HOLD
Published on 18 Dec 2025
We attended VOLT’s analyst conference call, wherein the management highlighted continued weakness in the RAC industry, elevated channel inventory, and sustained margin pressures in the near term, while outlining early signs of channel pre-stocking ahead of BEE norm change and medium-term growth levers across non-RAC cooling categories, EMPS and Engineering Products. Company expects gradual normalization in the coming quarters, with growth visibility improving into FY27, contingent on summer demand and cost improvement actions. Voltbek continued growth momentum with market share gains across its key products We estimate revenue/EBITDA/PAT CAGR of 9.0%/9.9%/12.1% for FY25-28E. The stock is currently trading at 47x/39x FY27/FY28E. we tweak our SOTP-based TP to Rs1,415 (Rs 1,411 earlier), implying PE of 39x FY28E. Maintain ‘HOLD’ rating.
