Voltas Limited (VOLTAS) AI Stock Analysis

• Market Cap: ₹454.17B
• Dividend Yield: 0.51%
• Average Volume (3M): 39.67K
• Price to Earnings (P/E): 70.1
• Beta (1Y): 1.06
• Revenue Growth: 2.76%
• EPS Growth: 41.73%
• Country: IN
• Employees: 1,938
• Sector: Consumer Defensive
• Sector Strength: 49
• Industry: Industrial - Machinery
• EPS (TTM): 4.25
• Shares Outstanding: 330,884,740
• 10 Day Avg. Volume: 51,975
• 30 Day Avg. Volume: 39,667
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,398.82
• Price Target Upside: 1.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: ₹1,430.00 ▲(4.18% Upside)

The overall stock score for Voltas Limited is primarily influenced by strong financial performance, particularly in revenue growth and balance sheet stability. However, cash flow challenges and technical indicators suggest caution. The high P/E ratio indicates potential overvaluation, further impacting the score.

Voltas Limited Business Overview & Revenue Model

Company Description

Voltas Limited, a part of the Tata Group, is a leading Indian multinational company with diverse operations in the fields of air conditioning, refrigeration, and engineering. Established in 1954, the company is headquartered in Mumbai, India. Voltas offers a wide range of products and services including air conditioners, air coolers, commercial refrigeration solutions, and engineering projects. The company is also involved in providing engineering solutions for electro-mechanical projects, water management, and rural electrification.

How the Company Makes Money

Voltas Limited generates revenue primarily through its diverse business segments, which include Unitary Cooling Products, Electro-Mechanical Projects and Services, and Engineering Products and Services. The Unitary Cooling Products segment, which includes air conditioners and air coolers, is a significant contributor to the company's revenue, driven by consumer demand and seasonal factors. The Electro-Mechanical Projects and Services division provides design, engineering, and contracting services for building infrastructure, including HVAC systems, electrical works, plumbing, and firefighting solutions. This segment benefits from large-scale infrastructure projects and partnerships with construction and real estate companies. The Engineering Products and Services division involves the sale and maintenance of mining and construction equipment, as well as textile machinery, contributing to the company's earnings through equipment sales and service contracts. Voltas also collaborates with various global companies to enhance its product offerings and expand its market reach, which further supports its revenue growth.

Voltas Limited Financial Statement Overview

Summary

Voltas Limited shows strong revenue growth and improved profitability metrics. The balance sheet is robust with low leverage, indicating financial stability. However, cash flow challenges are evident, with negative free cash flow and operating cash flow figures, necessitating improved cash flow management.

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	154.13B	153.20B	124.81B	78.41B	93.99B	74.57B
Gross Profit	29.64B	33.60B	25.93B	19.40B	20.21B	18.73B
EBITDA	12.98B	13.15B	7.27B	8.68B	4.96B	8.25B
Net Income	8.41B	8.41B	2.52B	5.04B	1.35B	5.25B
Balance Sheet
Total Assets	131.52B	131.52B	120.36B	97.46B	102.79B	86.55B
Cash, Cash Equivalents and Short-Term Investments	19.19B	19.19B	16.55B	10.48B	13.68B	7.38B
Total Debt	8.92B	8.92B	7.44B	3.61B	6.51B	2.61B
Total Liabilities	66.12B	66.12B	61.82B	42.09B	47.85B	36.26B
Stockholders Equity	65.13B	65.13B	58.20B	55.00B	54.52B	49.93B
Cash Flow
Free Cash Flow	0.00	-4.32B	4.68B	5.36B	-205.50M	5.35B
Operating Cash Flow	0.00	-2.24B	7.62B	5.84B	1.59B	5.56B
Investing Cash Flow	0.00	1.58B	-5.22B	-3.65B	-816.00M	-2.56B
Financing Cash Flow	0.00	-997.10M	-1.16B	-1.07B	550.50M	-1.22B

Voltas Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1372.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1372.6 is above the 20-day moving average (MA) of 1326.12, above the 50-day MA of 1336.82, and below the 200-day MA of 1417.66, indicating a neutral trend. The MACD of 9.20 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 63.99 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
BLUESTARCO	73 Outperform	₹387.09B	71.24		0.48%	17.04%	7.63%
VGUARD	69 Neutral	₹158.31B	54.80		0.40%	8.75%	-1.44%
CROMPTON	63 Neutral	₹212.47B	40.35		0.91%	1.99%	10.81%
Sector *	63 Neutral	$20.44B	14.73	-2.84%	3.14%	2.04%	-6.12%
VOLTAS	62 Neutral	₹454.17B	70.13		0.51%	2.76%	41.73%
KPRMILL	62 Neutral	₹337.17B	40.89		0.51%	8.02%	2.32%
WHIRLPOOL	60 Neutral	₹164.97B	45.71		0.38%	7.78%	26.20%

Voltas Limited Corporate Events

Voltas Limited’s 71st AGM Sees Unanimous Shareholder Approval

Voltas Limited held its 71st Annual General Meeting on July 8, 2025, conducted via video conferencing. All proposed items were approved by shareholders, with consolidated voting results and the Scrutinizer’s Report submitted as per regulatory requirements, reflecting strong shareholder support and compliance with SEBI regulations.

Voltas Limited Concludes 71st AGM with Key Business Updates

Voltas Limited held its 71st Annual General Meeting on July 8, 2025, via video conferencing, where key company executives, including Chairman Noel N. Tata, addressed shareholders. The meeting covered the company’s business operations and financial performance, with provisions made for electronic voting. The AGM paid tribute to notable figures and expressed condolences for a recent tragedy, while also ensuring transparency in voting through the appointment of a scrutinizer.