Voltas Limited (VOLTAS) AI Stock Analysis

• Market Cap: ₹485.18B
• Dividend Yield: 0.5%
• Average Volume (3M): 51.73K
• Price to Earnings (P/E): 88.6
• Beta (1Y): 1.17
• Revenue Growth: -1.46%
• EPS Growth: -1.15%
• Country: IN
• Employees: 1,938
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 1.03
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,460.00 ▼(-1.76% Downside)

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

Revenue Growth

Strong revenue growth indicates Voltas's ability to capture market demand and expand its customer base, supporting long-term business sustainability.

Balance Sheet Strength

A low debt-to-equity ratio reflects financial stability and low risk, providing Voltas with flexibility to invest in growth opportunities.

Profitability Improvement

Improved net profit margins suggest enhanced operational efficiency and cost management, which are crucial for long-term profitability.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could hinder Voltas's ability to fund operations and growth initiatives.

EBIT Margin Decline

A declining EBIT margin suggests pressure on operational efficiency, which may affect future profitability if not addressed.

Free Cash Flow Decline

Significant decline in free cash flow growth highlights cash management issues, potentially impacting Voltas's ability to invest in future growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	144.30B	154.13B	124.81B	94.99B	79.34B	75.56B
Gross Profit	32.79B	34.49B	26.48B	21.06B	20.26B	19.67B
EBITDA	9.05B	11.58B	4.87B	5.87B	6.97B	6.82B
Net Income	6.48B	8.41B	2.52B	1.35B	5.04B	5.25B
Balance Sheet
Total Assets	0.00	131.52B	120.36B	102.79B	97.46B	86.55B
Cash, Cash Equivalents and Short-Term Investments	17.06B	19.19B	19.72B	13.68B	10.48B	7.38B
Total Debt	0.00	8.92B	7.44B	6.51B	3.61B	2.61B
Total Liabilities	-65.40B	66.12B	61.82B	47.85B	42.09B	36.26B
Stockholders Equity	65.40B	65.13B	58.20B	54.52B	55.00B	49.93B
Cash Flow
Free Cash Flow	0.00	-4.32B	4.68B	-205.50M	5.36B	5.35B
Operating Cash Flow	0.00	-2.24B	7.62B	1.59B	5.84B	5.56B
Investing Cash Flow	0.00	1.58B	-5.22B	-816.00M	-3.65B	-2.56B
Financing Cash Flow	0.00	-997.10M	-1.16B	550.50M	-1.07B	-1.22B

Voltas Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VOLTAS, the sentiment is Positive. The current price of 1486.15 is above the 20-day moving average (MA) of 1408.74, above the 50-day MA of 1377.51, and above the 200-day MA of 1344.31, indicating a bullish trend. The MACD of 27.95 indicates Negative momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VOLTAS.

Voltas Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KPRMILL	68 Neutral	₹283.57B	33.86	―	0.52%	11.10%	3.53%
BLUESTARCO	67 Neutral	₹370.67B	67.87	―	0.51%	14.20%	3.84%
VGUARD	67 Neutral	₹138.02B	47.45	―	0.45%	6.34%	-2.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹485.18B	88.55	―	0.50%	-1.46%	-1.15%
CROMPTON	57 Neutral	₹162.23B	34.31	―	1.16%	0.73%	-5.88%
WHIRLPOOL	56 Neutral	₹107.30B	30.64	―	0.53%	4.14%	16.19%

Voltas Limited Corporate Events

Voltas Limited Announces New Head of Internal Audit

Voltas Limited has announced a significant change in its management team with the appointment of Mr. Amit Jaiswal as the Head of Internal Audit, effective December 8, 2025. Mr. Jaiswal, a Chartered Accountant with over 17 years of experience, brings expertise in internal audit, financial controls, risk management, and compliance, which is expected to strengthen Voltas’ internal audit processes and enhance its governance framework.

Voltas Limited Reports Q2 2025 Financial Results Amidst Market Challenges

Voltas Limited announced its unaudited financial results for the quarter and half year ended September 30, 2025, highlighting a challenging period due to external factors like a lean summer and GST-related demand deferment, which affected retail offtake and margins. Despite these challenges, Voltas maintained its market leadership and strategic position through innovation and channel expansion. The company reported a decrease in consolidated total income and net profit compared to the previous year, yet its diversified portfolio helped stabilize its operations.

Voltas Limited Reports Financial Results Amidst External Challenges

Voltas Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025, highlighting a challenging period due to external factors like a lean summer and GST-related demand deferment. Despite these challenges, Voltas maintained its market leadership and strategic position, focusing on product innovation and channel expansion. The company reported a decline in consolidated total income and net profit compared to the previous year, reflecting the impact of the external challenges on its financial performance.

Voltas Limited Launches Shareholder Support Initiatives

Voltas Limited has announced the launch of the ‘Saksham Niveshak Campaign’ aimed at assisting shareholders with unpaid or unclaimed dividends. Additionally, the company has opened a special window for re-lodgement of transfer requests for physical shares, addressing issues faced by shareholders whose transfer requests were previously rejected or unattended due to documentation deficiencies. These initiatives are expected to enhance shareholder engagement and streamline share transfer processes, potentially improving stakeholder satisfaction and operational efficiency.