Consumer durables major Voltas is doubling down on the domestic market amid global uncertainty, deepening penetration in tier-2 and tier-3 towns, MD & CEO Pradeep Bakshi said in the company’s latest annual report for the financial year ended March 2025.
The Tata-owned firm, which closed FY25 with consolidated revenue of Rs 15,320 crore and net profit of Rs 713 crore, up 24% and 363%, respectively, versus last year, is re-calibrating its international portfolio, Bakshi said, refining operational execution and consumer connection in India.
“Mounting inflationary pressures, fuelled by lingering supply disruptions and volatile energy prices, led to a tightening of monetary policies. Escalating trade tensions have further fragmented global supply chains. For Voltas, with a footprint spanning diverse markets, this has entailed navigating an increasingly dynamic and often challenging external environment,” he said.
Voltas derives 87% of its revenue from India and 13% from global markets located in Africa and West Asia. The company derives nearly 70% of its revenue from unitary cooling products, which include room air conditioners and air coolers. The balance comes from electromechanical projects and services and engineering products. Appliances such as refrigerators and washing machines are part of a joint venture with European firm Arcelik, marketed under the Voltas Beko brand.
Bakshi, a consumer durables veteran who is retiring from Voltas on August 31, 2025, said the firm had crossed 2.5 million units in AC sales in FY25, a record performance, driven by heat waves. The Voltas Beko brand, on the other hand, saw refrigerator and washing machine sales cross one million units each in FY25. The company remains the market leader in ACs with an overall market share of 19%.
Analysts have warned that FY26 has begun on a weak note for most AC players, including Voltas, on account of unseasonal rains and an early start to the southwest monsoon during the April-June period.
“In FY25, Voltas outperformed expectations with 36% volume growth in the unitary cooling products segment, exceeding industry growth of 29% and selling over 2.5 million AC units. Anticipating a strong summer, the company had built up inventory this year (FY26), but erratic weather conditions led to a weaker-than-expected season,” Gautam Duggad, head of research and director of institutional equities at Motilal Oswal, said in a note on the company on Thursday.
Industry experts said the domestic AC market is expected to see an overall decline in sales by at least 20-25% in the June 2025 quarter despite the north Indian market witnessing some recovery in AC sales due to rising heat waves in June. North India contributes 40% to overall AC sales and is among the most important markets for AC players.
Sector analysts said that while Voltas has maintained its market leadership position despite volatile market conditions and weak demand, the company, like most other players, has the challenge of liquidating inventory in the months ahead.
Most players are also not expected to take price hikes in the months ahead despite volatile commodity prices in view of weak domestic demand conditions.
“Most AC brands are resorting to freebies such as free installation and price offs to push volumes after a difficult summer period to clear inventory,” analysts at Elara Securities said on Thursday.
But a cost increase of Rs 800-1,000 per AC from January 2026 will likely be there once the new energy efficiency norms kick in from January 2026, some of which could be passed on to consumers, experts said.