Voltas (VOLT IN) – Q1FY27 Result Update – UCP margins on a steady recovery path – HOLD
Published on 17 Aug 2026
Voltas reported 18.7% YoY revenue growth to INR46.7bn, led by strong UCP growth, particularly 45% RAC volume growth, while EMPS revenue declined 27.1% YoY due to delayed international order bookings amid Middle East geopolitical tensions. EBITDA margin expanded 110bps YoY to 5.7%, supported by price hikes, deeper localization, cost optimization and higher manufacturing utilisation, despite 10-12% cost inflation, supported by price hikes, deeper localization and higher manufacturing utilisation. We have downward revised our FY27E/FY28E earnings by 4.0%/1.9%, factoring in slower-than-expected growth in the UCP and EMPS segments going forward. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 14%/45%/63.8%. we maintain our SOTP-based TP of INR1,308 (same as earlier), implying PE of 43x FY28E. Maintain ‘HOLD’
