UBS has reiterated its buy call on Voltas with a target price of ₹1,770, highlighting that the reduction in GST on room air conditioners (ACs) will significantly improve affordability and align their tax structure with other major white goods. The brokerage said this tax reform could act as a catalyst for long-term demand expansion, helping Voltas strengthen its positioning in India’s growing consumer durables market.
While unseasonal rains dampened room AC demand in the recent quarter, channel checks indicate that festive sales are expected to be stronger. The brokerage noted that dealers remain upbeat but are seeking greater clarity on input tax credit under the revised GST structure. UBS believes Voltas could emerge as a leading white goods player by FY28, supported by its strong brand recall, wide distribution, and diversified portfolio.
Factoring in the GST cut, UBS has raised its revenue and earnings estimates for Voltas by 2% across FY26–28, saying the move enhances earnings visibility and reduces cyclicality in the segment.
Disclaimer: The views and recommendations made in this article are those of UBS. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
