Voltas Q2 Profit Down 76.3 % to ₹ 31.5 Cr

Air-conditioning manufacturer and engineering services provider Voltas Ltd on Thursday reported a 76.28 % decline in consolidated net profit to ₹ 31.5 crore for the September quarter of FY26, as a subdued summer season and GST-related demand deferment weighed on its cooling business.

It had posted a consolidated net profit of ₹ 132.83 crore in the July-September period a year ago, according to a regulatory filing from the Tata Group firm.

Voltas' revenue from operations declined 10.37 % to ₹ 2,347.32 crore in the September quarter of FY26 as compared to ₹ 2,619.11 crore in the corresponding quarter a year ago.

The quarter faced "short-term headwinds" and "was marked by external challenges such as lean summer and GST-related demand deferment, which impacted retail offtake and margins," said Voltas in its earnings statement.

Total expenses of Voltas stood at ₹ 2321.29 crore, down 6.65 % in the September quarter of FY26.

Voltas' total income, which includes other income, declined 11.47 % to ₹ 2,411.93 crore.

Commenting on the results, its Managing Director Mukundan Menon C P said, “The second quarter of FY26 was marked by external challenges, but our fundamentals remain strong. The GST reduction and upcoming BEE efficiency transition will unlock pent-up consumer demand in the upcoming quarters." In the first half (H1) of FY26, Voltas' total consolidated income stood at ₹ 6,432.58 crore, a decline of 16.73 %.

In the September quarter, Voltas' revenue from "unitary cooling products for comfort and commercial use", which has room AC business, was down 23.2 % to ₹ 1,215.13 crore. It was at ₹ 1,582.19 crore in the corresponding period last fiscal."

The segment faced muted retail offtake due to the lag effect of early monsoon and GST rate reduction (from 28% to 18%), which led to deferred purchases and higher channel inventory," said Voltas.

Moreover, margins were temporarily impacted by higher marketing support and under-absorption at new facilities in Chennai and Waghodia.

However, its revenue from "electro-mechanical projects and services", which comprises domestic and international projects businesses, was also up 9.8 % in the September quarter to ₹ 966.17 crore.

The growth "supported the diversified portfolio that Voltas manages, mitigating seasonality in the cooling business. The Domestic projects business advanced execution across MEP, water, electrical, and solar projects, while International operations maintained disciplined project management and high-quality delivery," it said.

Its revenue from Engineering Products and Services was down 5.22 % to ₹ 139.05 crore.

"The segment maintained operational resilience, with mining and construction equipment showing stable performance and textile machinery meeting revenue and collection targets. Aftersales service continues to be a strong contributor to profitability," it said.

Share of Voltas Ltd on Thursday settled at ₹ 1,326.60 apiece on BSE, down 0.64 % from the previous close.