First Read: Voltas Ltd "Q4FY26 - Healthy demand outlook, margin visibility..."

研报英文原文证据摘录

First Read: Voltas Ltd "Q4FY26 - Healthy demand outlook, margin visibility..."

seeing strong 03/28E 40.29 38.69 -4 37.68

growth aided by a favourable base, healthy secondary offtake, and improving channel

inventory (~30–45 days). Growth outlook remains positive for RAC with industry Akshay Gattani

Analystvolumes expected to grow 15–20%. Management highlighted near-term pressure for

akshay-kumar.gattani@ubs.com

margins to persist from commodity inflation, FX while expecting margins to improve

+91-22-6155 6044

progressively (vs weak FY26); with a gradual move toward FY25 levels though speed of

recovery is contingent on demand strength. A cumulative price hike of (~8–9% from Amit Mahawar

Analysttable changes plus incremental increases) has been taken and indicated further hikes

amit.mahawar@ubs.com

likely as double-digit cost inflation flows through. EMP outlook remains stable with +91-22-6155 6030

strong order book (Rs62bn) and no margin risk due to price variation clauses, while

Engineering Products and commercial businesses are seeing steady to strong growth. Harshita Surana

Associate Analyst

harshita.surana@ubs.com

Valuation: near term visibility on margin improvement remains limited +91-22-6155 6066

Sharp margin miss vs expectations is a key negative, though commodity inflation and

currency depreciation is now an industry-wide phenomenon. The uncertain pace of

margin recovery could overshadow strong summer-led RAC demand. While we

continue to view Voltas as a structural play on India’s cooling market, near-term stock

performance could remain volatile due to margin headwind from commodity and

currency. Factoring margin miss and cost headwinds, we cut our FY27E/FY28E earnings

by 8%/4% and revise our SoTP-based PT to Rs1,540 (vs Rs1,625); maintain Buy.