You know it’s bad when the country’s leading air-conditioner maker spends an earnings call explaining why summer forgot to show up. Q1 FY26 was the anti-thesis of last year’s heatwave party — a late, mild summer that left Voltas with three months of inventory and memories of better days. Revenue tanked 19.6% YoY, EBIT margins in Unitary Cooling Products fell off a cliff, and warehouses doubled as long-term storage units. Still, Voltbek (washing machines and fridges) grew 33% and market share in ACs crept up to 19.3% in June, proving that brand loyalty can sometimes outshine the weather.
Why it matters? Because this is a stress test of Voltas’ ability to diversify beyond seasonal cooling, fend off 65+ competitors, and keep margins alive when the climate decides to troll.
Stick around—things get spicier two scrolls down.
AT A GLANCE
• Revenue ₹4,020.65 cr – down 19.6% YoY; CFO blames the monsoon, not management• UCP EBIT margin 3.6% – under-absorption meets higher promos in a cost-cutting face-off• Voltbek up 33% – washing machines did the heavy lifting• Project order book ₹6,200 cr – steady, cautious, no “burning fingers” this time• Market share in RAC 19.3% (June) – still king, but fewer crowns in the closet
MANAGEMENT’S KEY COMMENTARY
Pradeep Bakshi, MD & CEO:“North India never got summer.”Translation:We sold ACs in sweater weather.
K.V. Sridhar, CFO:“EBIT down ~400 bps due to under-absorption and higher costs.”Translation:Plants sat idle while ads ran overtime.
Bakshi:“We’re carrying 3 months’ brand inventory, dealers 2 months.”Translation:The hottest thing in our warehouses right now is stale stock.
Bakshi:“Industry degrew 35–40% in Q1.”Translation:Misery has plenty of company.
Bakshi:“Voltbek is an investment, not
a loss.”Translation:We’re losing money, but please call it brand-building.
Bakshi:“65+ players make fragmentation inevitable.”Translation:Everyone and their cousin sells ACs now.
Bakshi:“Festival season + second summer will make up the shortfall.”Translation:Our recovery plan depends on both climate and Diwali shoppers.
NUMBERS DECODED
| Revenue – The Hero | EBIT – The Sidekick | Margins – The Drama Queen |
|---|---|---|
| ₹4,020.65 cr vs ₹5,001.27 cr YoY | ₹202.72 cr vs ₹451.52 cr | UCP margin 3.6% vs 8.6% YoY |
Revenue:Cooling products segment revenue fell 24.6% to ₹2,867.86 cr. EMPS dipped slightly (₹921.83 cr vs ₹949.13 cr). EPS crashed to ₹4.25 from ₹10.10.
EBIT:UCP EBIT down to ₹104.37 cr from ₹327.02 cr; projects EBIT ₹49.24 cr from ₹67.49 cr.
Margins:Hurt by fixed cost under-absorption, warehousing expenses, and higher promotions to keep trade partners warm.
ANALYST QUESTIONS
Q:“Inventory levels?”A:3 months at Voltas, 2 months at dealers.Street take:That’s enough to cool the whole country if summer ever comes back.
Q:“Pricing pressure?”A:Competitors discounting, we’re holding ground… for now.Street take:
