Voltas Q1 PAT jumps 51 per cent to Rs 213 crore as AC sales surge 45 per cent

MUMBAI: Voltas has turned up the heat on its rivals, with a strong summer driving a 51 per cent jump in consolidated profit after tax to Rs 213 crore in the first quarter of FY27.

The Tata Group appliance maker reported PAT of Rs 213 crore for the quarter ended June 30, compared with Rs 141 crore in Q1 FY26. Consolidated total income rose 18.5 per cent to Rs 4,765 crore from Rs 4,021 crore a year earlier.

Profit before tax increased 40.4 per cent to Rs 285 crore from Rs 203 crore, as robust demand for room air conditioners helped offset weaker revenue from its electro-mechanical projects business.

The Unitary Cooling Products business was the star performer. Revenue from the segment climbed 32.3 per cent year on year to Rs 3,794 crore, while segment results almost doubled to Rs 202 crore from Rs 104 crore.

Voltas sold 1 million room ACs in just 81 days, with volumes rising 45 per cent year on year. Its secondary market share reached 17.3 per cent for the period through June, giving the company a four-percentage-point lead over its nearest competitor.

The company attributed the performance to strong summer demand, an expanded product portfolio and higher penetration in Tier II and Tier III markets. Its AI-powered Vertis Split AC range and the “True 1.5 TR Cooling Capacity” campaign also supported the push.

High utilisation at its Chennai and Pantnagar manufacturing facilities helped Voltas respond to peak-season demand, while localisation, cost optimisation and selective price increases helped cushion the impact of higher raw material costs and currency movements.

Voltas’ joint venture with Arçelik, Voltbek, recorded its highest-ever quarterly sales volumes and value.

The business reported a year-to-date market share of 9.4 per cent in washing machines and 7.4 per cent in refrigerators. Demand was supported by premium Frost-Free refrigerators and fully automatic washing machines.

The share of losses from joint ventures and associates stood at Rs 37.24 crore during the quarter.

Voltas’ Engineering Products and Services segment also delivered growth. Revenue increased 17.8 per cent to Rs 159 crore from Rs 135 crore, while segment results reached Rs 41 crore.

The performance was supported by demand for crushing and screening equipment in mining and construction, lifecycle maintenance contracts, stable operations in Mozambique and double-digit growth in textile machinery.

The Electro-Mechanical Projects and Services segment, however, saw revenue fall 27.1 per cent to Rs 672 crore from Rs 922 crore. Segment results stood at Rs 38 crore.

Domestic project activity remained healthy, particularly across infrastructure-linked sectors, but international order bookings were affected by delays stemming from geopolitical tensions in the Middle East. The business nevertheless ended the quarter with a carry-forward order book of more than Rs 6,345 crore.

Voltas also provided updates on two overseas matters.

In Qatar, the Court of Appeal ruled in May in favour of the company in a dispute involving a legacy subcontract from 2010. The ruling ordered the main contractor to pay compensation and return bank guarantees worth Rs 432.66 crore, or QAR 166.6 million. The guarantees have since been cancelled.

The main contractor has appealed to the Court of Cassation, although independent legal counsel has advised that no financial impact is expected.

In the UAE, Voltas said its restructuring remains on track, with Dubai and Abu Dhabi branch operations expected to move to step-down subsidiary Universal MEP Contracting L.L.C. by September 30, 2026. The company said the transfer is not expected to affect its consolidated financials.

With room AC volumes racing ahead and its core cooling business delivering a near-doubling in segment profit, Voltas has started FY27 with the numbers firmly on its side.