Voltas (VOLT IN) – Q3FY26 Result Update – Sustained pressure on UCP margins – HOLD
Published on 29 Jan 2026
UCP EBIT margins contracted 210bps due to higher channel and customer support investments and discounts in Q3FY26 aimed at maintaining and strengthening market share while helping channel partners to clear inventory. Channel inventory remains elevated at ~5-6 weeks but is expected to normalize by Mar’25. VOLT market share has slightly decreased in RAC segment (YTD market share of 17.9% as on Dec’25 vs 18.5% as on Sep’25). To expand presence in the South and West, where regional retailers dominate, company has identified ~85 regional retailers for deeper penetration. VOLT is continuously reassessing its pricing strategy and plans higher price hikes in the coming quarter to offset commodity inflation, higher costs from BEE norms, and currency impact. Going ahead, VOLT will focus on MEP segment growth driven by data centers, along with selective metro and infrastructure projects with lower risk and pricing protection. Voltbek continues to deliver strong momentum and maintains No2 position in semi-automatic washing machine while improving traction across key categories with YTD market share of 6.2%/8.2% in refrigerators/washing machines. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 16.5%/37.5%/46.5%. we maintain out SOTP-based TP to Rs1,442 (earlier Rs1,442), implying PE of 39x FY28E. Maintain ‘HOLD’ rating.
