Voltas Ltd, a leading air-conditioning and engineering services provider, witnessed a sharp 12% decline in its stock price on Thursday, despite reporting a ₹132 crore net profit in the December 2024 quarter. The stock fell to ₹1,296 on the BSE, with the company’s market capitalization slipping to ₹43,599 crore.
While Voltas showed a significant recovery from a ₹30 crore loss in the same quarter last year, its weak Q3 margins and intense competition in the UCP segment triggered a negative reaction from investors.
How Has Voltas Stock Performed Recently?
Voltas stock is currently trading lower than its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages.
- Over the past year, the stock has gained 29%.
- However, in 2025 alone, the stock has fallen by 28.28%, erasing most of its previous gains.
What Were Voltas’ Q3 Earnings Highlights?
Despite the stock plunge, Voltas’ Q3 financials showed positive growth:
| Q3 Financials | Q3 FY25 (₹ Crore) | Q3 FY24 (₹ Crore) | Growth (%) |
|---|---|---|---|
| Net Profit | 132 | -30 (Loss) | Positive Growth |
| Revenue from Operations | 3,105 | 2,626 | +18% |
| Total Income | 3,164 | 2,684 | +18% |
Although revenue grew by 18%, the company’s profit margins fell short of expectations, leading to a bearish sentiment in the stock market.
What Are Analysts Saying About Voltas Stock?
The mixed analyst ratings on Voltas stock reflect both concerns and optimism about the company’s future performance.
| Brokerage Firm | Rating | Target Price (₹) |
|---|---|---|
| Goldman Sachs | Sell | 1,400 |
| Morgan Stanley | Overweight | 1,975 |
| ICICI Securities | Add (Upgraded from Hold) | 1,630 |
Goldman Sachs: Why Did They Assign a ‘Sell’ Rating?
Goldman Sachs pointed out that Voltas’ Q3 was weaker than expected, with lower margins driven by intense competition in its Unitary Cooling Products (UCP) segment.
- The UCP margin dropped to 5.9%, marking its lowest level in 30 quarters.
- The EPS business faced more headwinds, leading to a revenue decline and margin contraction.
- Despite 56% volume growth in Beko appliances, the company continued to report EBIT losses.
What Did Morgan Stanley Say About Voltas’ Future?
Morgan Stanley maintained its overweight rating on Voltas, with a target price of ₹1,975.
- The firm recognized Voltas’ market share gains in refrigerators and washing machines through Voltbek, a joint venture with Beko.
- They acknowledged short-term challenges but expect long-term value creation.
Why Did ICICI Securities Upgrade Voltas to ‘Add’?
ICICI Securities raised its FY25 earnings estimates by 3.5%, but cut FY26-27 estimates by 4%, reflecting concerns over short-term volatility.
- They highlighted that the stock’s 24% correction over the last four months provides valuation support.
- Given the DCF-based valuation, they upgraded Voltas from ‘Hold’ to ‘Add’, setting a target price of ₹1,630.
What’s Next for Voltas?
Despite short-term volatility, Voltas remains a strong player in the consumer appliances and engineering services space. However, its ability to navigate competitive pressures, improve margins, and sustain revenue growth will be crucial for its future stock performance.
FAQs
Why did Voltas shares fall despite strong Q3 profits?
The stock declined due to weaker-than-expected profit margins, particularly in its UCP segment, which fell to 5.9%, the lowest in 30 quarters.
What was Voltas’ net profit in Q3 FY25?
Voltas reported a net profit of ₹132 crore in Q3 FY25, compared to a ₹30 crore loss in the same quarter last year.
How much did Voltas’ revenue grow in Q3?
The company’s revenue from operations grew by 18% year-on-year, reaching ₹3,105 crore.
What is the latest target price for Voltas stock?
- Goldman Sachs: ₹1,400 (Sell)
- Morgan Stanley: ₹1,975 (Overweight)
- ICICI Securities: ₹1,630 (Upgraded from Hold to Add)
What is the biggest risk for Voltas right now?
The biggest risk is intense competition, which has led to lower profit margins in its core UCP business.
Is Voltas still a good investment?
While short-term challenges exist, long-term investors may see value, given the company’s market position and future growth potential.
How has Voltas’ stock performed recently?
The stock has gained 29% over the past year, but has fallen by 28.28% in 2025.
What factors will influence Voltas’ stock movement next?
- Recovery in profit margins
- Growth in the Voltbek JV for refrigerators and washing machines
- Overall market sentiment and investor confidence
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