Voltas Limited (VOLTAS) AI Stock Analysis

• Market Cap: ₹413.62B
• Dividend Yield: 0.5%
• Average Volume (3M): 51.73K
• Price to Earnings (P/E): 132.4
• Beta (1Y): 1.16
• Revenue Growth: -1.46%
• EPS Growth: -1.15%
• Country: IN
• Employees: 1,938
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 2.57
• Shares Outstanding: 330,884,740
• 10 Day Avg. Volume: 117,984
• 30 Day Avg. Volume: 51,734
• PEG Ratio: 0.23
• Price to Book (P/B): 6.87
• Price to Sales (P/S): 2.90
• P/FCF Ratio: -103.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,815.00
• Price Target Upside: 22.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 17.07
• Revenue Forecast (FY): ₹145.88B

• Rating: 61 Neutral
• Price Target: ₹1,650.00 ▲(11.03% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Voltas Limited's strong financial performance, particularly in revenue growth and balance sheet stability, is offset by significant cash flow challenges. The technical indicators suggest a neutral to bearish trend, and the high P/E ratio indicates overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Low leverage / strong balance sheet

Voltas's very low debt-to-equity (0.14) and healthy equity ratio provide durable financial flexibility to fund capex, bid for large projects, and withstand demand cycles. Low leverage reduces refinancing risk and supports strategic investments without stressing interest coverage over the medium term.

Robust revenue growth and improved net margins

Material year-over-year revenue expansion alongside higher gross and net margins suggests durable demand, pricing power, or improved mix. Sustained top-line momentum with rising net margins supports reinvestment capacity and long-term profitability if cost control and product mix gains persist.

Diversified business model and JV distribution

A mix of unitary cooling, large HVAC/MEP projects and the Voltas Beko consumer JV spreads revenue across retail, services, and contracts. This structural diversification reduces single-market cyclicality, provides recurring after-sales revenue, and broadens distribution channels for sustained growth.

Negative Factors

Negative free cash flow and OCF decline

Operating cash flow deterioration and a plunge in free cash flow are a structural concern: they limit internal funding for capex, working capital and dividends. Persistent negative FCF can force external financing, increase leverage or constrain bidding for large projects over the medium term.

EBIT margin compression

A near-halving of EBIT margin signals lasting operational pressure from higher costs, pricing mix shifts, or execution inefficiencies. If margins do not recover, returns on projects and product lines will be weaker, reducing internal cash generation and limiting capacity to invest for growth.

Project execution and working-capital risk

Voltas's projects business is structurally exposed to tender competition, milestone billing and cost-overrun risk. Delays or higher working-capital needs can strain liquidity and compress margins over months, making project execution a persistent operational and balance-sheet vulnerability.

Voltas Limited Business Overview & Revenue Model

Company Description

Voltas Limited operates as an air conditioning and engineering company primarily in India, the Middle East, Singapore, and internationally. It operates through three segments: Unitary Cooling Products for Comfort and Commercial Use; Electro-Mechanical Projects and Services; and Engineering Products and Services. The company manufactures, sells, and services cooling appliances and cold storage products, such as air conditioners, air coolers, freezers, visi coolers, water dispensers, variable refrigerant flow, and chillers. It also undertakes electro-mechanical projects, including electrical; heating, ventilation, and air conditioning projects; and plumbing, firefighting, extra low voltage, and specialized activities. In addition, the company provides facilities maintenance and hard services, such as operations and maintenance contracts in various sectors, AMCs, retrofits and energy management, etc. Further, it engages in the provision of water treatment solutions for industrial, oil and gas, and sewage segments; sale and service of capital machinery for textile industry; sale of spares and accessories for textile equipment; and sale of mining and construction equipment. Additionally, the company offers operations and maintenance services for mining and construction industry; manufactures ducts and duct accessories; and undertakes engineering, procurement, and construction projects. It also engages in the drilling, irrigation, and landscaping activities; and construction of water treatment plants. Voltas Limited was incorporated in 1954 and is headquartered in Mumbai, India.

How the Company Makes Money

Voltas generates revenue primarily through the sale of air conditioning and refrigeration products, which constitute a significant portion of its business. The company operates in the consumer segment by selling residential air conditioning units and in the commercial segment by providing HVAC solutions for larger enterprises and projects. Additionally, Voltas earns income through its electro-mechanical projects and engineering services, which include installation and maintenance contracts. The company also benefits from strong partnerships with global brands, enhancing its product offerings and market reach. Factors such as the growing demand for energy-efficient cooling solutions, increasing urbanization, and a rising middle class in India contribute positively to its earnings.

Voltas Limited Financial Statement Overview

Summary

Voltas Limited shows strong revenue growth and improved profitability metrics, with a robust balance sheet indicating low leverage and financial stability. However, cash flow challenges are evident, requiring attention to ensure sustainable operations.

Income Statement

Voltas Limited demonstrated a strong revenue growth with a 22.74% increase from the previous year. The gross profit margin stands at 21.93%, and the net profit margin improved significantly to 5.49% from 2.02% in the prior year. Despite a decrease in EBIT margin from 13.35% to 6.88%, the company's EBITDA margin improved to 8.58%, indicating better operational efficiency. Overall, the income statement reflects robust revenue growth but highlights a need for improved EBIT performance.

Balance Sheet

The balance sheet of Voltas Limited is strong, with a stable debt-to-equity ratio of 0.14, indicating low leverage. The return on equity improved to 12.92%, showcasing efficient utilization of equity capital. The equity ratio is healthy at 49.52%, reflecting a solid financial position. Overall, the company maintains a stable and low-risk balance sheet profile with significant equity backing.

Cash Flow

Voltas Limited experienced a decline in operating cash flow, resulting in negative free cash flow. The free cash flow growth rate plummeted by 192.29%, reflecting cash management challenges. The operating cash flow to net income ratio is negative, indicating cash flow issues. Although free cash flow to net income ratio is also negative, the company's previous cash reserves provide some cushion. Overall, cash flow management requires attention to ensure sustainable operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	141.26B	154.13B	124.81B	94.99B	79.34B	75.56B
Gross Profit	31.52B	34.49B	26.48B	21.06B	20.26B	19.67B
EBITDA	8.42B	11.58B	4.87B	5.87B	6.97B	6.82B
Net Income	5.48B	8.41B	2.52B	1.35B	5.04B	5.25B
Balance Sheet
Total Assets	128.75B	131.52B	120.36B	102.79B	97.46B	86.55B
Cash, Cash Equivalents and Short-Term Investments	13.98B	19.19B	19.72B	13.68B	10.48B	7.38B
Total Debt	17.55B	8.92B	7.44B	6.51B	3.61B	2.61B
Total Liabilities	64.81B	66.12B	61.82B	47.85B	42.09B	36.26B
Stockholders Equity	63.69B	65.13B	58.20B	54.52B	55.00B	49.93B
Cash Flow
Free Cash Flow	-11.32B	-4.32B	4.68B	-205.50M	5.36B	5.35B
Operating Cash Flow	-10.69B	-2.24B	7.62B	1.59B	5.84B	5.56B
Investing Cash Flow	3.04B	1.58B	-5.22B	-816.00M	-3.65B	-2.56B
Financing Cash Flow	5.93B	-997.10M	-1.16B	550.50M	-1.07B	-1.22B

Voltas Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1486.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VOLTAS, the sentiment is Negative. The current price of 1486.15 is above the 20-day moving average (MA) of 1464.84, above the 50-day MA of 1443.38, and above the 200-day MA of 1380.98, indicating a bearish trend. The MACD of -25.85 indicates Positive momentum. The RSI at 32.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VOLTAS.

Voltas Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLUESTARCO	67 Neutral	₹333.41B	110.38	―	0.51%	14.20%	3.84%
VGUARD	67 Neutral	₹140.24B	62.71	―	0.45%	6.34%	-2.25%
KPRMILL	65 Neutral	₹281.21B	38.61	―	0.52%	11.10%	3.53%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹413.62B	132.41	―	0.50%	-1.46%	-1.15%
CROMPTON	57 Neutral	₹150.16B	41.30	―	1.16%	0.73%	-5.88%
WHIRLPOOL	56 Neutral	₹99.39B	107.65	―	0.53%	4.14%	16.19%