Voltas Limited (VOLTAS) AI Stock Analysis

• Market Cap: ₹449.95B
• Dividend Yield: 0.51%
• Average Volume (3M): 51.73K
• Price to Earnings (P/E): 69.5
• Beta (1Y): 1.11
• 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: ₹1,535.00
• Price Target Upside: 11.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,460.00 ▲(6.08% Upside)

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 (VOLTAS) is a leading engineering solutions company in India, primarily engaged in the manufacturing, marketing, and servicing of air conditioning and refrigeration products. Founded in 1954, it operates across various sectors including HVAC (heating, ventilation, and air conditioning), cooling solutions, and engineering projects. The company offers a diverse range of products, including air conditioners, commercial refrigeration equipment, and cooling appliances, along with providing integrated engineering services for various infrastructure projects in India and abroad.

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: Neutral
• Last Price: 1376.30
• 50DMA: Negative
• 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 Neutral. The current price of 1376.3 is above the 20-day moving average (MA) of 1361.40, below the 50-day MA of 1383.14, and above the 200-day MA of 1337.87, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹394.16B	72.54	―	0.51%	14.20%	3.84%
KPRMILL	68 Neutral	₹368.56B	44.01	―	0.46%	11.10%	3.53%
VGUARD	67 Neutral	₹162.56B	55.94	―	0.44%	6.34%	-2.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹449.95B	69.48	―	0.51%	-1.46%	-1.15%
WHIRLPOOL	59 Neutral	₹174.35B	48.31	―	0.42%	4.14%	16.19%
CROMPTON	57 Neutral	₹182.45B	34.65	―	1.13%	0.73%	-5.88%

Voltas Limited Corporate Events

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.

Voltas Limited Announces Closure of Trading Window

Voltas Limited has announced the closure of its trading window starting from September 24, 2025, in compliance with the Tata Code of Conduct for Prevention of Insider Trading. This closure will remain in effect until 48 hours after the company declares its unaudited financial results for the quarter and half-year ending on September 30, 2025. This move is part of the company’s regulatory compliance efforts and may impact stakeholders by temporarily restricting trading activities.