VOLTAS (+) : 1mn+ RAC sales; Leading with strength

研报英文原文证据摘录

VOLTAS (+) : 1mn+ RAC sales; Leading with strength

EQUITIES

CAPITAL GOODS

VOLTAS OUTPERFORMPRICE* INR1,343  TARGET PRICE INR1,470 (UPSIDE 9%)

FLASH NOTE

1mn+ RAC sales; Leading with strength

22 JUNE 2026 Securities Research Report Production time: 02:16* (London time)

Research Analyst & Publishing Entities

Nirransh Jain BNP Paribas Securities India Private Limited +91 22 6196 5039 nirransh.jain@asia.bnpparibas.com

What happened?

VOLT in its latest press release (Link) highlighted crossing 1mn+ RAC sales in 1QFY27. As per the company, industry

demand remains encouraging with summer continuing across several markets, and it seems well positioned to capture

the category growth and further consolidate its market leadership. “Summer is still on”.

BNPP View:

- As per our estimates, 1mn+ RAC sales should likely translate into c33-35% volume growth in 1QFY27 (on a

depressed base of c25-30% y-y volume decline in 1QFY26), highlighting both strong industry primary volume

rebound (+c20-25%) and a sharp uptick in VOLT’s market share (y-y).

- Alongside a likely decent revenue growth expectation in the non-RAC portfolio (+c12-15%), we believe that the

consensus expectation for the UCP’s 1QFY27 revenue growth will now inch upto +c32-35% vs. earlier expectation

of c25-30%. Our UCP’s EBIT margin estimate for 1QFY27 stands at c3.8%.

- This further validates our thesis (Refer: C&W lead persists; emerging value in HVAC) that though concerns on

VOLT’s margin uncertainty remains given elevated commodity costs, FX depreciation and staggered price hikes

amidst its volume chase strategy, it had been baked in May’26 stock-price correction - leaving scope for a potential

revenue upside. Secondary demand had been strong since mid-Apr’26 and the channel inventory levels remain