Voltas Ltd.
NSE: VOLTASVoltas Ltd.: A 30-second snapshot
Voltas trades at ₹1,293.5, down 12.3% over 3 months and 18.3% below its 52-week high, with current price below both the 50-DMA (₹1,384.6) and 200-DMA (₹1,388.6). The company reported FY26 PAT of ₹370 crore for the full year, but Q4 standalone PAT fell 52% year-on-year to ₹113 crore as costs rose faster than revenue. A trailing PE of 81.3x sits alongside a 5-year earnings contraction of 51.8% and a profit margin of 2.6%.
P/E
81.3
Forward P/E
33.8
ROE
+5.7%
Debt / Equity
15.51
Profit Margin
+2.6%
Div. Yield
+0.5%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
26/100
News
8 headlines · 3 positive · 3 negative
Voltas Declares ₹4 Dividend, Reports FY26 PAT of ₹370 Crores - scanx.trade
scanx.trade
Voltas Q4 FY26: Net profit falls 52% to ₹113 cr, revenue inches higher - Business Standard
Business Standard
Voltas Q4 profit halves as costs rise despite slight revenue growth; margins shrink - MSN
MSN
VOLTAS: Revenue and profit declined in FY26, but leadership in cooling products was maintained - TradingView
TradingView
Voltas Wins Qatar Court Ruling: OHL&C to Pay QAR 203.62 Million to KVC, Bank Guarantees of QAR 166.72 Million to Be Returned - scanx.trade
scanx.trade
Recent context
- ·FY26 full-year PAT of ₹370 crore was accompanied by a Q4 miss — standalone net profit halved to ₹113 crore versus the prior-year period — driven by cost pressures outpacing revenue growth.
- ·A favourable Qatar international arbitration outcome awarded Voltas QAR 203.62 million, providing a non-operating resolution to a longstanding project-related dispute.
- ·The company declared a ₹4 dividend for FY26, maintaining a payout despite the earnings decline; dividend yield stands at approximately 0.54% at current price levels.
Strengths
- +Market position in cooling products acknowledged in recent coverage, with the India summer seasonality and heatwave-driven AC demand cited as a structural volume driver across reported periods.
- +Forward PE of 33.8x — substantially below the trailing PE of 81.3x — reflects market pricing in a meaningful earnings recovery, suggesting analyst consensus embeds an expectation of margin normalisation.
- +A Qatar court ruling awarded KVC (a Voltas subsidiary) QAR 203.62 million from OHL&C, with QAR 166.72 million in bank guarantees to be returned, resolving a material international project dispute.
- +Revenue growth of 7.5% over 5 years on the top line indicates the business has expanded in scale even as bottom-line profitability has contracted.
Weaknesses
- −5-year earnings growth of -51.8% and FCF positive in only 2 of the available years indicate persistent deterioration in profitability and cash generation capacity.
- −Debt-to-equity of 15.51 is materially elevated for a consumer durables manufacturer; combined with a rising debt trend and zero years with ROE above 15%, the balance sheet shows ongoing leverage pressure.
- −Quality score of 5 ranks last among 6 Consumer Goods peers — TRENT at 49, ETERNAL at 41, DMART at 37, TITAN at 34, ASIANPAINT at 23 — a wide gap that spans across multiple fundamental dimensions.
- −Profit margin of 2.6% is thin; Q4 FY26 results showed costs rising faster than revenue, compressing margins further with PAT falling 52% year-on-year in the most recent quarter.
Open questions
- ?Does the gap between the trailing PE of 81.3x and the forward PE of 33.8x reflect a realistic earnings recovery path, or does it depend on assumptions that the Q4 cost trajectory would need to reverse sharply?
- ?How much of the D/E ratio of 15.51 is attributable to project-financing structures in the international EPC segment, and does the Qatar court award meaningfully reduce that overhang?
- ?Given that ROE has not exceeded 15% in any of the tracked years, what operational or structural change would be required for Voltas to close the quality-score gap with peers like TRENT (49) and TITAN (34)?
- ?Is the brand leadership in room air conditioners — cited as maintained even through FY26 revenue and profit declines — a durable competitive position, or is it exposed to intensifying competition from lower-cost manufacturers?
Peer comparison: Consumer Goods
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| VOLTAS | Voltas Ltd.You're viewing | 81.3 | +5.7% | 5 |
| Industry avg | across 5 peers | 79.6 | +19.6% | 37 |
| TRENT | Trent Ltd. | 84.8 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.6 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 73.1 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 64.9 | — | 23 |
Technical state
Current price
₹1,293.50
SMA 50
₹1,384.62
SMA 200
₹1,388.55
RSI (14)
39.3 (neutral)
From 52w high
-18.3%
1Y return
+2.8%
3M return
-12.3%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -51.8% alongside FCF positive in only 2 of available years points to persistent deterioration in core profitability and cash generation.
- highDebt-to-equity of 15.51 is materially elevated for a consumer durables manufacturer; combined with zero years of ROE above 15% and a consistencyScore of 45, the balance sheet trajectory is under strain.
- highQuality score of 5 ranks last (6th of 6) among Consumer Goods peers — TRENT 49, ETERNAL 41, DMART 37, TITAN 34, ASIANPAINT 23 — reflecting broad-based fundamental underperformance versus the peer set.
- mediumTrailing PE of 81.3x is commanded despite a profit margin of 2.6% and 5-year earnings contraction of 51.8%; forward PE of 33.8x implies market expectations of a sharp earnings recovery.
- mediumPrice of ₹1,293.5 sits below both the 50-DMA (₹1,384.6) and 200-DMA (₹1,388.6), with a 3-month decline of 12.34% and a 52-week drawdown of 18.26% from the high.
- lowQ4 FY26 PAT reported down 52% year-on-year to ₹113 crore on rising costs; multiple outlets flagged margin compression alongside only modest revenue growth.
Cross-section contradictions
- Trailing PE of 81.3x is broadly in line with peers TRENT (84.8x) and TITAN (73.1x), yet those peers carry quality scores of 49 and 34 respectively versus VOLTAS at 5 — valuation has not compressed to reflect the divergence in fundamental quality.
- News sentiment is balanced (3 positive, 3 negative of 8 articles) while the stock has declined 12.34% over 3 months; the positive headlines — a Qatar court award of QAR 203.6 million and a ₹4 dividend — have not translated into price support.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days