Voltas Q2 FY27 results: net profit up 198.5% to ₹21.88 crore, revenue up 24.6%

How did Voltas perform in Q2 FY27?

Voltas reported standalone revenue of ₹1,795 crore in Q2 FY27, compared with ₹1,441 crore in Q2 FY26 and ₹4,001 crore in Q1 FY27. Standalone EBITDA was ₹29.59 crore, against a loss of ₹11.68 crore in the year-ago quarter, while the EBITDA margin was 1.6% compared with -0.8%. Against Q1 FY27, EBITDA was ₹198.92 crore and the margin was 5.0%.

Standalone profit before tax was ₹27.93 crore, compared with ₹7.57 crore in Q2 FY26 and ₹334.20 crore in Q1 FY27. Net profit was ₹21.88 crore, against ₹7.33 crore in Q2 FY26 and ₹280.47 crore in Q1 FY27. Basic EPS was ₹0.66, compared with ₹0.22 in Q2 FY26 and ₹8.48 in Q1 FY27. The margin on net profit was 1.2% in Q2 FY27, compared with 0.5% a year earlier.

On the consolidated basis, the company reported total income of ₹2,746 crores in Q2 FY27, compared with ₹2,412 crores in Q2 FY26. Consolidated profit before tax was ₹83 crores against ₹54 crores, and consolidated net profit was ₹48 crores against ₹32 crores. The Board approved both standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026.

What changed in Voltas' costs and profit?

Standalone total expenses rose to ₹1,804 crore from ₹1,489 crore in Q2 FY26, an increase of ₹315.46 crore or 21.2%. Cost of materials increased by ₹269.87 crore to ₹1,332 crore, employee cost rose by ₹24.49 crore to ₹178.05 crore, and other expenses increased by ₹110.74 crore to ₹319.27 crore. Finance costs rose by ₹3.56 crore to ₹16.72 crore, while depreciation fell by ₹0.85 crore to ₹22.20 crore.

Other income fell by ₹18.20 crore to ₹37.26 crore in Q2 FY26 comparison. Tax was ₹6.05 crore against ₹0.24 crore in the year-ago quarter, an increase of ₹5.81 crore. There was no exceptional item in the quarter. The filing said commodity inflation and adverse currency movements created cost pressures, while the company addressed them through calibrated pricing actions and cost optimisation initiatives, including localisation, sourcing efficiencies, product redesign and manufacturing productivity improvements.

Against Q1 FY27, standalone total expenses fell by ₹2,027 crore to ₹1,804 crore, mainly as cost of materials declined by ₹563.04 crore to ₹1,332 crore and other expenses fell by ₹116.60 crore to ₹319.27 crore. Employee cost rose by ₹5.36 crore to ₹178.05 crore, finance costs rose by ₹7.15 crore to ₹16.72 crore and depreciation rose by ₹2.32 crore to ₹22.20 crore. Other income fell by ₹127.47 crore to ₹37.26 crore, and tax fell by ₹47.68 crore to ₹6.05 crore. There was no exceptional item.

How did the first half of FY27 go?

For the first half of FY27, standalone revenue was ₹5,795.56 crore, compared with ₹4,522.31 crore in H1 FY26, an increase of ₹1,273.25 crore or 28.2%. Total income was ₹5,997.55 crore against ₹4,730.16 crore, up ₹1,267.39 crore or 26.8%. Standalone profit before tax was ₹362.13 crore, compared with ₹249.35 crore, while net profit was ₹302.35 crore against ₹210.81 crore.

First-half basic EPS was ₹9.14, compared with ₹6.37 in H1 FY26. The company’s consolidated filing gave total income of ₹7,511 crores for H1 FY27, compared with ₹6,433 crores in H1 FY26, consolidated profit before tax of ₹368 crores against ₹257 crores and consolidated net profit of ₹260 crores against ₹172 crores.

What do the balance sheet and cash flow show?

At 30 September 2026, standalone total assets were ₹13,266.75 crore, compared with ₹13,987.27 crore at 31 March 2026. Total equity rose to ₹8,375.52 crore from ₹7,964.25 crore. Borrowings were ₹1,327.51 crore against ₹790.40 crore, while cash fell to ₹252.27 crore from ₹477.25 crore. Inventories were ₹3,447.21 crore against ₹3,376.97 crore, trade receivables were ₹894.08 crore against ₹2,079.03 crore, and trade payables were ₹2,398.24 crore against ₹3,853.69 crore.

Standalone operating cash flow for H1 FY27 was an outflow of ₹498.29 crore, compared with an outflow of ₹1,094.90 crore in H1 FY26. Investing cash flow was an outflow of ₹47.47 crore against an inflow of ₹424.45 crore, while financing cash flow was an inflow of ₹368.18 crore compared with ₹512.96 crore. Capital expenditure was ₹65.73 crore, against ₹62.94 crore in the year-ago period.

How has Voltas done over the last 8 quarters?

Voltas’s quarterly revenue reached its highest point at ₹4,000.63 crore in Q1 FY27 before falling to ₹1,794.93 crore in Q2 FY27. The lowest quarterly revenue in the series was ₹1,440.91 crore in Q2 FY26. Net profit was highest at ₹280.47 crore in Q1 FY27 and lowest at ₹7.33 crore in Q2 FY26, while Q2 FY27 profit was ₹21.88 crore.

The EBITDA margin moved from -0.8% in Q2 FY26 to 5.0% in Q1 FY27 before declining to 1.6% in Q2 FY27. Revenue rose year on year in each of the last four quarters, and profit rose year on year in each of the last two quarters. The latest quarter therefore showed lower revenue, profit and margin than Q1 FY27, but higher revenue, profit and margin than Q2 FY26.

Which businesses drove the quarter?

For Unitary Cooling Products, standalone revenue was ₹1,566.79 crore in Q2 FY27, up 28.9% from ₹1,215.13 crore in Q2 FY26. Segment EBIT was ₹19.74 crore, compared with a loss of ₹45.80 crore in the year-ago quarter, and the EBIT margin was 1.3%. The company said the segment’s revenue growth was driven primarily by Room Air Conditioners, with 32% volume growth in the quarter.

For Electro-Mechanical Projects and Services, standalone revenue was ₹88.93 crore, down 53.8% from ₹192.36 crore in Q2 FY26. Segment EBIT was ₹32.36 crore, compared with ₹50.24 crore in the year-ago quarter, and the EBIT margin was 36.4%. The company said the projects business had a carry-forward order book of over ₹6,800 crore and that its approach remained selective order booking, disciplined execution and working-capital management.

What else did the company announce?

The Board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 6 November 2026. The same-day filings also recorded that Noel N. Tata would retire as Chairman and Director from the close of business on 11 November 2026 and would become Chairman Emeritus from 12 November 2026. Sunil Alaric D’Souza was appointed Chairman from 12 November 2026.

The Board said Mukundan Menon C.P. would complete his tenure as Managing Director on 24 May 2027 and retire from the company’s services on that date. Jayant Balan, Head of the Room Air Conditioner Business, was approved as Additional Director and Managing Director for five years from 25 May 2027, subject to shareholder approval, and was redesignated Managing Director Designate until then. Venkatesalu Palaniswamy was appointed as an Additional Director with effect from 12 November 2026.

The Board approved Deloitte Haskins & Sells Chartered Accountants LLP as statutory auditors for five years, from the conclusion of the 73rd AGM in 2027 until the conclusion of the 78th AGM in 2032, subject to shareholder approval. The filing stated that the second and final term of S R B C & Co. LLP would conclude at the 73rd AGM. No dividend or fund-raising announcement was included in the same-day filing excerpts.

What did Voltas' management say?

Management said the quarter was affected by moderate global economic growth, geopolitical uncertainty, commodity inflation and currency volatility, which created cost pressures across manufacturing and supply chains. It said an extended summer supported cooling demand in a traditionally lean quarter, while the Room Air Conditioner business recorded 32% volume growth and the company maintained a 17.4% year-to-date market share with a 4.2% lead over its nearest competitor.

Management said the company would continue to focus on consolidating and extending its market leadership in Room Air Conditioners through product innovation, sharper portfolio management, sustained brand investment and deeper distribution penetration. It also said it would maintain its focus on premiumisation, energy-efficient products and technology-led differentiation, and address commodity and currency-related cost pressures through calibrated pricing and structural cost optimisation initiatives.

Management said Voltbek remained focused on accelerating scale, strengthening its position across Washing Machines and Refrigerators and improving profitability through new product lines and distribution expansion. For projects, the emphasis remained on selective and value-accretive order booking, disciplined execution, working-capital efficiency and sustainable profitability. It also said Engineering Products and Services would pursue growth through a diversified product portfolio, established customer relationships and expanding aftermarket and service capabilities.

Management identified commodity inflation, currency volatility and Middle East geopolitical uncertainty as risks. It said Textile Machinery continued to face challenges from geopolitical uncertainty and international trade developments, while Commercial Refrigeration was relatively flat because of softer demand. Management also highlighted greater localisation of critical components, including compressor sourcing and manufacturing, and continued investment in product innovation, manufacturing readiness and higher-capacity Voltbek product lines.

How did other Household Appliances companies do?

Among 13 Household Appliances companies that had filed for the quarter, the median revenue growth was 15.1%. Nine peers grew more slowly than Voltas, while four grew faster than Voltas. Eight of the 13 peers reported higher profit. Voltas’s standalone revenue growth was 24.6% in Q2 FY27.