CLSA has maintained its underperform rating on Voltas Ltd with a target price of ₹1,170 per share after the company delivered a sharply weaker Q2FY26, led by a significant downturn in its core cooling products segment.
The UCP business reported a 23% YoY revenue decline and a contribution loss of 3.8% — the segment’s first loss in more than ten years. CLSA said the decline was materially worse than peers, reflecting soft demand and continued pricing pressure.
Consolidated revenue fell 10% YoY, while EBITDA dropped 57% YoY, resulting in a margin of just 3%. The only bright spot was the EMP division, which posted 10% revenue growth and a margin of 9.5%.
CLSA said investors will now focus on post-festive demand trends and management commentary on channel inventory, which remains elevated across several regions.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
