Jefferies has maintained its buy rating on Voltas Ltd with a target price of ₹1,670 per share even as the company reported a weaker-than-expected Q2FY26 performance, hurt by margin compression and a sharp slowdown in its Unitary Cooling Products (UCP) segment.
Consolidated revenue came in at ₹23.4 billion, down 10% YoY but broadly in line with estimates. Operating profit margin slipped to 3%, a decline of 320 bps YoY, resulting in a 74% YoY drop in reported PAT to ₹343 million.
The UCP segment, which includes room air conditioners, saw sales decline 23% YoY, with the segment reporting an EBIT loss due to poor operating leverage, higher marketing expenses, and under-absorption at new manufacturing facilities. Jefferies said seasonal demand was also muted due to weather-related disruptions.
Despite the near-term pressure, the brokerage remains constructive on medium-term recovery driven by festive demand, inventory normalisation, and improved traction across new capacities.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
