WEBSITE BSE:500575 NSE: VOLTAS LTD Inc. Year: 1954 Industry: Air Conditioners My Bucket: Add Stock
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1. Business Overview
Voltas Ltd. is a leading Indian multinational conglomerate specializing in air conditioning and cooling technology, and electro-mechanical projects. Its core business revolves around three main areas: manufacturing, selling, and servicing unitary cooling products (residential and commercial air conditioners, air coolers, water dispensers, commercial refrigeration products); undertaking electro-mechanical projects (MEP) for various sectors like power, water, wastewater, mining, and industrial infrastructure both domestically and internationally; and providing engineering products and services. The company makes money through the sale of its cooling products, execution of large-scale engineering projects, and after-sales service and maintenance contracts.
2. Key Segments / Revenue Mix
Voltas primarily operates through three segments:
Unitary Cooling Products (UCP): This is its largest and most profitable segment, primarily comprising air conditioners, air coolers, commercial refrigerators, and water dispensers. It contributes a significant majority of the company's revenue and profits.
Electro-Mechanical Projects & Services (EMP): This segment involves undertaking heating, ventilation, air conditioning (HVAC) systems, electrical installations, plumbing, and fire-fighting systems for various commercial, residential, and industrial projects, as well as water management and treatment projects. It operates in India and the Middle East.
Engineering Products & Services (EPS): This segment deals with the distribution and after-sales service of various engineering products, primarily textile machinery and mining & construction equipment. This is the smallest segment.
Note: Specific revenue contribution percentages are not provided here to avoid fabrication, but the UCP segment is generally understood to be the dominant revenue and profit driver.
3. Industry & Positioning
Voltas operates in the highly competitive Indian air conditioning market, which is characterized by growing demand driven by rising incomes, urbanization, and climate change. It is also a significant player in the broader MEP services industry. Voltas holds a strong market leadership position in the residential air conditioner segment in India, often cited as the top brand by market share. In the commercial refrigeration and project execution space, it competes with both domestic and international players like Daikin, LG, Samsung, Blue Star, Lloyd, and Hitachi in ACs, and various specialized engineering firms for projects.
4. Competitive Advantage (Moat)
Voltas possesses several durable competitive advantages:
Strong Brand Recognition: As a Tata Group company with a long history (established 1954), Voltas enjoys high brand trust and recall, particularly in India.
Extensive Distribution & Service Network: Voltas has a vast pan-India distribution network (dealers, retailers, exclusive brand outlets) and a robust after-sales service infrastructure, which is crucial for consumer durables like ACs.
Scale & Cost Efficiencies: Being a market leader provides scale advantages in manufacturing, procurement, and R&D, potentially leading to better cost efficiencies.
Project Execution Capabilities: Its long-standing experience and expertise in executing complex MEP projects, both domestically and internationally, provide a competitive edge in that segment.
5. Growth Drivers
Key factors that can drive Voltas's growth over the next 3-5 years include:
Increasing Disposable Incomes & Urbanization: Rising affluence in India fuels demand for consumer durables like ACs.
Rising Temperatures & Climate Change: Increasingly warmer weather across India drives higher adoption of cooling solutions.
Low AC Penetration: India has significantly lower AC penetration compared to developed economies, offering a vast untapped market.
Infrastructure Development: Government and private sector investments in commercial, residential, and industrial infrastructure drive demand for Voltas's MEP services.
Product Innovation & Energy Efficiency: Continuous product innovation and focus on energy-efficient models can drive replacement demand and new sales.
Premiumization Trend: Consumers upgrading to higher-end or smart ACs contributes to value growth.
6. Risks
Intense Competition: The Indian AC market is highly competitive with both domestic and international players vying for market share, potentially impacting margins.
Seasonal & Cyclical Demand: AC sales are highly seasonal and sensitive to weather patterns (cooler summers can depress sales). The project business is cyclical, tied to economic growth and investment cycles.
Raw Material Price Volatility: Fluctuations in commodity prices (e.g., copper, aluminum, steel) can impact manufacturing costs and profitability.
Economic Slowdown: A downturn in the broader economy can lead to reduced discretionary spending on consumer durables and slower project awarding.
Regulatory Changes: Changes in energy efficiency norms (BEE star ratings), import duties, or environmental regulations can impact product design, costs, and market dynamics.
Forex Fluctuations: For its international project business and import of components, currency volatility can pose a risk.
7. Management & Ownership
Voltas Ltd. is part of the prestigious Tata Group, one of India's largest and most respected conglomerates. The Tata Sons holding company is the primary promoter. This affiliation implies a strong corporate governance framework, ethical business practices, and access to group resources. The management team consists of seasoned professionals with extensive experience in the consumer durables and engineering sectors, overseeing operations and strategic direction. Ownership is primarily held by the promoter group (Tata Sons), with significant holdings by institutional investors (both domestic and foreign) and the public.
8. Outlook
Voltas is well-positioned to capitalize on India's long-term growth story, particularly in the consumer durables and infrastructure sectors. Its market leadership in the residential AC segment, coupled with a strong brand and extensive network, provides a solid foundation. The low AC penetration rates and rising disposable incomes in India present significant growth opportunities for its Unitary Cooling Products segment. The Electro-Mechanical Projects segment stands to benefit from ongoing infrastructure development, though it remains cyclical. While Voltas faces intense competition and margin pressures, its strategic focus on product innovation, energy efficiency, and expanding reach, along with the backing of the Tata Group, should enable it to maintain its competitive edge. However, the business remains susceptible to raw material price volatility, seasonal demand fluctuations, and broader economic slowdowns, necessitating prudent financial and operational management.
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Market Cap ₹41453 Cr.
Stock P/E 49.7
P/B 6.5
Current Price ₹1252.8
Book Value ₹ 192.7
Face Value 1
52W High ₹1582
Dividend Yield 0.32%
52W Low ₹ 1187.5
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 2626 | 4203 | 4921 | 2619 | 3105 | 4768 | 3939 | 2347 | 3071 | 4888 |
| Other Income | 58 | 54 | 80 | 105 | 59 | 80 | 82 | 65 | 49 | 43 |
| Total Income | 2684 | 4257 | 5001 | 2725 | 3164 | 4847 | 4021 | 2412 | 3120 | 4930 |
| Total Expenditure | 2597 | 4012 | 4497 | 2457 | 2908 | 4435 | 3760 | 2277 | 2893 | 4667 |
| Operating Profit | 86 | 245 | 504 | 268 | 256 | 412 | 261 | 135 | 226 | 263 |
| Interest | 14 | 21 | 10 | 14 | 16 | 23 | 14 | 20 | 31 | 22 |
| Depreciation | 13 | 12 | 13 | 16 | 18 | 14 | 18 | 24 | 21 | 21 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26 | 0 |
| Profit Before Tax | 60 | 212 | 481 | 238 | 223 | 375 | 229 | 91 | 148 | 221 |
| Provision for Tax | 51 | 63 | 117 | 73 | 60 | 107 | 62 | 23 | 31 | 71 |
| Profit After Tax | 8 | 149 | 364 | 165 | 163 | 268 | 166 | 68 | 117 | 149 |
| Adjustments | -39 | -33 | -30 | -31 | -31 | -27 | -26 | -34 | -32 | -33 |
| Profit After Adjustments | -30 | 116 | 334 | 134 | 132 | 241 | 140 | 34 | 85 | 116 |
| Adjusted Earnings Per Share | -0.9 | 3.5 | 10.1 | 4.1 | 4 | 7.3 | 4.2 | 1 | 2.6 | 3.5 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 5183 | 5720 | 6033 | 6404 | 7124 | 7658 | 7556 | 7934 | 9499 | 12481 | 15413 | 14245 |
| Other Income | 109 | 137 | 212 | 185 | 197 | 231 | 189 | 189 | 168 | 255 | 324 | 239 |
| Total Income | 5292 | 5857 | 6245 | 6590 | 7321 | 7889 | 7745 | 8124 | 9667 | 12736 | 15737 | 14483 |
| Total Expenditure | 4773 | 5287 | 5466 | 5753 | 6524 | 6972 | 6914 | 7253 | 8926 | 12008 | 14297 | 13597 |
| Operating Profit | 519 | 570 | 779 | 837 | 798 | 917 | 830 | 871 | 741 | 728 | 1441 | 885 |
| Interest | 23 | 16 | 16 | 12 | 33 | 21 | 26 | 26 | 30 | 56 | 62 | 87 |
| Depreciation | 28 | 26 | 24 | 24 | 24 | 32 | 34 | 37 | 40 | 48 | 62 | 84 |
| Exceptional Income / Expenses | 46 | 29 | 1 | 1 | -12 | -51 | 0 | 0 | -244 | 0 | 0 | -26 |
| Profit Before Tax | 514 | 563 | 720 | 805 | 677 | 744 | 709 | 697 | 307 | 486 | 1191 | 689 |
| Provision for Tax | 128 | 170 | 200 | 227 | 164 | 223 | 180 | 191 | 171 | 238 | 356 | 187 |
| Profit After Tax | 386 | 393 | 520 | 578 | 514 | 521 | 529 | 506 | 136 | 248 | 834 | 500 |
| Adjustments | -2 | -6 | -2 | -6 | -6 | -4 | -4 | -2 | -1 | 4 | 7 | -125 |
| Profit After Adjustments | 384 | 387 | 517 | 572 | 508 | 517 | 525 | 504 | 135 | 252 | 841 | 375 |
| Adjusted Earnings Per Share | 11.6 | 11.7 | 15.6 | 17.3 | 15.4 | 15.6 | 15.9 | 15.2 | 4.1 | 7.6 | 25.4 | 11.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 23% | 25% | 15% | 12% |
| Operating Profit CAGR | 98% | 18% | 9% | 11% |
| PAT CAGR | 236% | 18% | 10% | 8% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -1% | 16% | 4% | 14% |
| ROE Average | 14% | 7% | 8% | 12% |
| ROCE Average | 18% | 11% | 12% | 17% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 2102 | 2811 | 3307 | 3905 | 4110 | 4280 | 4993 | 5500 | 5452 | 5821 | 6513 |
| Minority's Interest | 16 | 27 | 29 | 32 | 35 | 36 | 36 | 38 | 42 | 34 | 27 |
| Borrowings | 5 | 0 | 0 | 0 | 0 | 5 | 6 | 13 | 21 | 228 | 382 |
| Other Non-Current Liabilities | 93 | 51 | 72 | 84 | -14 | 47 | 61 | 96 | 109 | 156 | 180 |
| Total Current Liabilities | 2635 | 2950 | 3042 | 3271 | 3285 | 3714 | 3504 | 4056 | 4620 | 5756 | 6006 |
| Total Liabilities | 4852 | 5838 | 6449 | 7292 | 7416 | 8083 | 8600 | 9702 | 10243 | 11994 | 13108 |
| Fixed Assets | 269 | 276 | 254 | 252 | 297 | 335 | 332 | 330 | 475 | 503 | 930 |
| Other Non-Current Assets | 846 | 1437 | 2205 | 2442 | 1472 | 2170 | 3078 | 3493 | 3322 | 3767 | 3300 |
| Total Current Assets | 3737 | 4126 | 3990 | 4598 | 5647 | 5578 | 5189 | 5879 | 6446 | 7725 | 8878 |
| Total Assets | 4852 | 5838 | 6449 | 7292 | 7416 | 8083 | 8600 | 9702 | 10243 | 11994 | 13108 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 273 | 217 | 170 | 313 | 258 | 311 | 269 | 448 | 561 | 693 | 816 |
| Cash Flow from Operating Activities | 311 | 219 | 428 | 325 | -321 | 462 | 556 | 584 | 159 | 762 | -224 |
| Cash Flow from Investing Activities | -104 | -315 | -73 | -199 | 393 | -210 | -256 | -365 | -82 | -522 | 158 |
| Cash Flow from Financing Activities | -236 | 48 | -211 | -181 | -18 | -294 | -122 | -107 | 55 | -116 | -100 |
| Net Cash Inflow / Outflow | -29 | -47 | 143 | -55 | 53 | -42 | 179 | 113 | 133 | 123 | -166 |
| Closing Cash & Cash Equivalent | 243 | 170 | 313 | 258 | 311 | 269 | 448 | 561 | 693 | 816 | 650 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 11.62 | 11.7 | 15.64 | 17.3 | 15.35 | 15.63 | 15.87 | 15.24 | 4.08 | 7.62 | 25.43 |
| CEPS(Rs) | 12.52 | 12.68 | 16.45 | 18.21 | 16.26 | 16.72 | 17.01 | 16.42 | 5.32 | 8.94 | 27.09 |
| DPS(Rs) | 2.25 | 2.6 | 3.5 | 4 | 4 | 4 | 5 | 5.5 | 4.25 | 5.5 | 7 |
| Book NAV/Share(Rs) | 63.56 | 84.99 | 99.96 | 118.05 | 124.24 | 129.39 | 150.95 | 166.25 | 164.81 | 175.95 | 196.89 |
| Core EBITDA Margin(%) | 7.88 | 7.53 | 9.3 | 10.14 | 8.43 | 8.96 | 8.49 | 8.59 | 6.03 | 3.79 | 7.24 |
| EBIT Margin(%) | 10.32 | 10.07 | 12.08 | 12.71 | 9.97 | 9.99 | 9.73 | 9.11 | 3.55 | 4.34 | 8.13 |
| Pre Tax Margin(%) | 9.87 | 9.79 | 11.82 | 12.52 | 9.51 | 9.72 | 9.39 | 8.79 | 3.23 | 3.89 | 7.73 |
| PAT Margin (%) | 7.42 | 6.84 | 8.53 | 8.99 | 7.21 | 6.8 | 7 | 6.38 | 1.43 | 1.99 | 5.41 |
| Cash Profit Margin (%) | 7.96 | 7.3 | 8.93 | 9.37 | 7.55 | 7.22 | 7.45 | 6.85 | 1.85 | 2.37 | 5.81 |
| ROA(%) | 8.07 | 7.35 | 8.46 | 8.41 | 6.99 | 6.72 | 6.34 | 5.53 | 1.37 | 2.23 | 6.65 |
| ROE(%) | 19.69 | 16 | 17 | 16.03 | 12.82 | 12.42 | 11.4 | 9.64 | 2.49 | 4.4 | 13.53 |
| ROCE(%) | 24.93 | 21.8 | 22.45 | 21.71 | 16.77 | 17.16 | 15.08 | 13.01 | 5.65 | 8.6 | 18.01 |
| Receivable days | 93.75 | 85.93 | 84.48 | 85.87 | 86.42 | 86.52 | 87.63 | 89.95 | 82.65 | 67.15 | 58.16 |
| Inventory Days | 61.99 | 50.55 | 48.86 | 48.83 | 48.77 | 61 | 66.39 | 67.65 | 62.51 | 54.5 | 57.43 |
| Payable days | 155.96 | 142.72 | 161.28 | 166.66 | 157.83 | 166.35 | 168.59 | 167.33 | 147.29 | 126.23 | 117.01 |
| PER(x) | 24.04 | 23.66 | 26.35 | 35.87 | 41.06 | 30.63 | 63.11 | 81.67 | 200.49 | 144.86 | 57.34 |
| Price/Book(x) | 4.4 | 3.26 | 4.12 | 5.26 | 5.07 | 3.7 | 6.64 | 7.49 | 4.96 | 6.27 | 7.41 |
| Dividend Yield(%) | 0.81 | 0.94 | 0.85 | 0.64 | 0.63 | 0.84 | 0.5 | 0.44 | 0.52 | 0.5 | 0.48 |
| EV/Net Sales(x) | 1.76 | 1.62 | 2.23 | 3.18 | 2.93 | 2.06 | 4.36 | 5.16 | 2.84 | 2.91 | 3.14 |
| EV/Core EBITDA(x) | 17.56 | 16.23 | 17.3 | 24.37 | 26.13 | 17.17 | 39.68 | 47.04 | 36.41 | 49.96 | 33.62 |
| Net Sales Growth(%) | -1.58 | 10.36 | 5.47 | 6.16 | 11.24 | 7.5 | -1.34 | 5.01 | 19.72 | 31.4 | 23.49 |
| EBIT Growth(%) | 48.12 | 7.74 | 27.28 | 8.11 | -13.03 | 0.42 | -3.93 | -1.66 | -53.44 | 60.86 | 131.29 |
| PAT Growth(%) | 57.05 | 1.83 | 32.24 | 7.2 | -11.08 | -7.89 | 1.49 | -4.31 | -73.08 | 82.14 | 236.25 |
| EPS Growth(%) | 56.64 | 0.72 | 33.65 | 10.62 | -11.27 | 1.82 | 1.54 | -4.01 | -73.22 | 86.65 | 233.88 |
| Debt/Equity(x) | 0.06 | 0.1 | 0.05 | 0.04 | 0.08 | 0.05 | 0.05 | 0.07 | 0.11 | 0.12 | 0.13 |
| Current Ratio(x) | 1.42 | 1.4 | 1.31 | 1.41 | 1.72 | 1.5 | 1.48 | 1.45 | 1.4 | 1.34 | 1.48 |
| Quick Ratio(x) | 1.09 | 1.15 | 1.01 | 1.16 | 1.39 | 1.11 | 1.12 | 1.04 | 1.05 | 0.97 | 1.03 |
| Interest Cover(x) | 23.09 | 36.61 | 45.9 | 68.53 | 21.54 | 36.28 | 28.12 | 27.95 | 11.38 | 9.69 | 20.17 |
| Total Debt/Mcap(x) | 0.01 | 0.03 | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 30.3 | 30.3 | 30.3 | 30.3 | 30.3 | 30.3 | 30.3 | 30.3 | 30.3 | 30.3 |
| FII | 17.17 | 14.71 | 15.08 | 18.08 | 21.31 | 21.96 | 21.16 | 20.26 | 18.41 | 18.45 |
| DII | 37.21 | 40.59 | 40.41 | 37.46 | 34.6 | 33.21 | 33.36 | 35.82 | 37.89 | 38.39 |
| Public | 15.32 | 14.4 | 14.21 | 14.16 | 13.79 | 14.54 | 15.18 | 13.62 | 13.4 | 12.86 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 10.03 | 10.03 | 10.03 | 10.03 | 10.03 | 10.03 | 10.03 | 10.03 | 10.03 | 10.03 |
| FII | 5.68 | 4.87 | 4.99 | 5.98 | 7.05 | 7.26 | 7 | 6.7 | 6.09 | 6.1 |
| DII | 12.31 | 13.43 | 13.37 | 12.4 | 11.45 | 10.99 | 11.04 | 11.85 | 12.54 | 12.7 |
| Public | 5.07 | 4.77 | 4.7 | 4.69 | 4.56 | 4.81 | 5.02 | 4.51 | 4.43 | 4.26 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 33.09 | 33.09 | 33.09 | 33.09 | 33.09 | 33.09 | 33.09 | 33.09 | 33.09 | 33.09 |
* The pros and cons are machine generated.
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