Air-conditioning and engineering services major Voltas on Thursday reported a 74.4% year-on-year decline in its net profit at Rs 34 crore for the quarter ended September, missing Street estimates by a wide margin. Bloomberg consensus estimates had pegged the Q2 net profit at Rs 89 crore.
Revenue fell 10.4% y-o-y to Rs 2,347 crore in Q2, below the Street estimates of Rs 2,462 crore. The company attributed the drop in revenue and profit to a lean summer and GST-led demand deferment in Q2, which hurt retail offtake.
Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 56.6% y-o-y to Rs 70 crore, below the Street estimates of Rs 104 crore. Ebitda margins contracted to 3% versus 6.2% reported in the corresponding period last year.
For the six months ended September 30, Voltas reported a consolidated total income of Rs 6,433 crore, down from Rs 7,726 crore in the same period last year. Profit before tax (PBT) stood at Rs 257 crore versus Rs 657 crore a year earlier, and net profit for H1 was Rs 172 crore compared with Rs 468 crore in the previous year.
The quarter was impacted by external challenges, including a lean summer and GST-related demand deferment, which affected retail offtake and margins. “The second quarter of FY26 was marked by external challenges, but our fundamentals remain strong. The GST reduction and upcoming BEE efficiency transition will unlock pent-up consumer demand in the upcoming quarters,” Managing Director Mukundan Menon said.
For the six months ended September 30, Voltas reported a consolidated total income of Rs 6,433 crore, down from Rs 7,726 crore in the same period last year. PBT stood at Rs 257 crore versus Rs 657 crore a year earlier, and net profit for H1 was Rs 172 crore compared with Rs 468 crore in the prior year.
In the September quarter, Voltas’ revenue from “unitary cooling products for comfort and commercial use”, which includes its room AC business, was down 23.2% y-o-y to Rs 1,215.13 crore. It was at Rs 1,582.19 crore in the corresponding period last fiscal.
“The segment faced muted retail offtake due to the lag effect of early monsoon and GST rate reduction (from 28% to 18%), which led to deferred purchases and higher channel inventory,” the company said. Moreover, margins were temporarily impacted by higher marketing support and under-absorption at new facilities in Chennai and Waghodia.
However, its revenue from electro-mechanical projects and services, which comprises domestic and international projects businesses, was also up 9.8% y-o-y in the September quarter to Rs 966.17 crore. The growth supported the diversified portfolio that Voltas manages, mitigating seasonality in the cooling business, experts said. The domestic projects business advanced execution across MEP, water, electrical, and solar projects, while international operations maintained disciplined project management and high-quality delivery, the company said.
Revenue from engineering products and services was down 5.22% y-o-y to Rs 139.05 crore. “The segment maintained operational resilience, with mining and construction equipment showing stable performance and textile machinery meeting revenue and collection targets. After sales service continues to be a strong contributor to profitability,” it added.