Voltas Q2 Results | Net profit plunges 74% on summer, GST impact; misses estimates

Air-conditioning maker and engineering services provider Voltas Ltd reported a 74.4% year-on-year decline in net profit to ₹34.3 crore for the quarter ended September 2025, compared with ₹134 crore in the same period last year. Revenue fell 10.4% to ₹2,347 crore from ₹2,619 crore a year earlier.

EBITDA dropped 56.6% to ₹70.4 crore from ₹162 crore, while operating margin contracted to 3% from 6.2% in the corresponding quarter last year. The results were below CNBC-TV18 estimates, which had pegged net profit at ₹95 crore, revenue at ₹2,387 crore, EBITDA at ₹113 crore, and margin at 4.7%.

The quarter was impacted by external challenges, including a lean summer and GST-related demand deferment, which affected retail offtake and margins.

Despite these headwinds, Voltas retained its market leadership and continued strengthening its strategic position through product innovation, manufacturing excellence, and channel expansion. Its diversified portfolio, including Electro-Mechanical Projects and Services and Engineering Products, helped stabilise performance.

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For the six months ended September 30, 2025, Voltas reported consolidated total income of ₹6,433 crore, down from ₹7,726 crore in the same period last year. Profit Before Tax stood at ₹257 crore versus ₹657 crore a year earlier, and net profit for H1 was ₹172 crore compared to ₹468 crore in the prior year.

Unitary Cooling Products 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. Margins were impacted by higher marketing support and under-absorption at new facilities in Chennai and Waghodia.

Voltbek continued its growth trajectory in H1, gaining market share across washing machines, refrigerators, and small domestic appliances, becoming the fastest-growing home appliance brand in the country.

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The Electro-Mechanical Projects and Services segment mitigated seasonality in the cooling business, with domestic projects advancing execution across MEP, water, electrical, and solar projects, while international operations maintained disciplined project management and high-quality delivery.

Engineering Products and Services maintained operational resilience, with mining and construction equipment showing stable performance, textile machinery meeting revenue and collection targets, and after-sales service continuing as a strong contributor to profitability.

Shares of Voltas Ltd ended at ₹1,326.60, down by ₹8.50, or 0.64%, on the BSE.

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