VOLTAS (+) : Margin miss; Upbeat summer commentary

Research evidence excerpt

VOLTAS (+) : Margin miss; Upbeat summer commentary

Refinitiv

4QFY26 earnings call summary

Unitary Cooling products (UCP):

- The company maintained its market leadership in the RAC segment with c5.1%

difference in primary market share between VOLT and the cluster of next four

brands.

- The current utilisation levels at the Chennai and Pantnagar facilities are higher than

LY. Capacity of the Chennai facility has been increased to c1.5m units, and the

company plans next expansion in 1-2 years to reach c2m units p.a. It launched new

feature-led and AI-enabled products in RAC during FY26.

- Inventory levels remained moderately elevated in 4Q due to strategic stocking by

the brand to avoid stock out situations, which is expected to gradually normalise as

the seasonal demand ramps up (Currently at c30 days).

- Post the heavy channel filling in Dec-25 for old-rated products, the company saw a

slowdown in secondary sales during Jan/Feb-26, which ramped up in Mar-26

followed by a healthy traction in April/May-26 with strong heatwaves across regions.

- VOLT started dispatching new rated RAC models to the channel from Mar-26 with

c5-10% price hikes across 3-star and 5-star products (c7-8% blended hike). It also

took c2-3% hikes to offset commodity inflation and an additional hike in April-26 to

offset rupee depreciation. Management highlighted that the price hikes are being

absorbed by the channel currently and plans further price hikes (double-digit %) in

the near-term contingent on price stability.

- VOLT clocked a sales volume of c2.25m units in FY26 while the RAC industry

reported c14.3m primary sales and is expected to grow at c15-20% y-y in FY27.

Volt Beko:

- Its YTD market share stood at c6.2% in refrigerators and c8.6% in washing

machines.