Voltas Ltd

Meeting Details

• Date: August 14, 2026
• Time: not disclosed
• Type: group earnings conference call
• Mode: virtual teleconference
• Organizer: PhillipCapital India Private Limited

Participants

• Managing Director, Voltas Limited
• Chief Financial Officer, Voltas Limited
• Head, Corporate Finance, Voltas Limited
• Head FP&A, Voltas Limited
• Head Finance Controlling, Voltas Limited

Purpose

• Discuss Q1 FY27 earnings and business performance
• Q&A with investors following presentation

Additional Notes

• Transcript available on Voltas website
• Conference call was recorded

Business Overview

• Voltas operates in Unitary Cooling, Voltbek home appliances, EMPS, and Engineering Services.
• Focused on premiumisation, channel expansion, localisation, and efficient manufacturing.

Key Operational Highlights

• Q1 FY27 total income ₹4,765 crore; Net profit ₹213 crore.
• RAC volumes grew 45% YoY; RAC market share 17.3% FY27 till June.
• Voltbek highest quarterly sales in value and volume.
• Carry forward Segment B order book over ₹6,345 crore.
• JV with Atomberg on compressors to strengthen localisation.

Financial Performance

• Consolidated Total Income ₹4,765 crore; Profit Before Tax ₹285 crore.
• Net Profit ₹213 crore; margins improved versus prior year.
• Segment A margins improved despite commodity inflation.

Capital Structure & Liquidity

• Strong liquidity position; working capital discipline maintained.
• No material debt or capital-raising updates disclosed.

Strategic Priorities & Outlook

• Maintain RAC leadership via product innovation, premiumisation and channel deepening.
• Voltbek growth supported by premium lineups and expanded retail footprint.
• Selective cash-flow disciplined project execution across EMPS and engineering.

Risks & Mitigation

• Geopolitical tensions and Middle East conflict may affect orders; mitigate via focusing on domestic demand.
• Commodity/currency volatility mitigated by price increases, localisation, and cost optimisation.

Governance & Leadership

• No governance changes disclosed; corporate secretary remains responsible for compliance.

Financial highlights

• Consolidated total income: ₹4,764.74 crores for Q1 FY27.
• Profit before tax: ₹285.46 crores; profit after tax: ₹212.76 crores.
• RAC volumes grew 45% YoY in Q1 FY27; RAC market share 17.3% for FY27.

Segment and product mix

• A - Unitary Cooling Products revenue: ₹3,793.51 crores in Q1 FY27.
• B - Electro-Mechanical Projects and Services revenue: ₹671.81 crores.
• C - Engineering Products and Services revenue: ₹158.85 crores.
• Voltbek market share: 9.4% (Washing Machines) and 7.4% (Refrigerators) YTD June 2026.

Risks and execution notes

• Qatar litigation note indicates potential uncertainty; management expects no material impact.
• Overseas branches transfer to UMCL; completion by 30 September 2026; no impact on results.
• Carry forward order book for Segment B stands at ₹6,345 crores.

JV overview

• Voltas to partner with Atomberg Innovation to form a compressor JV in India.
• Binding term sheet signed; Voltas anchor customer, Atomberg technology partner.
• JV focuses on high energy efficiency, localization, and cost competitiveness.
• Transaction subject to due diligence, definitive agreements, and regulatory approvals.
• JV may supply compressors to other customers beyond Voltas.

Strategic rationale

• Combines Voltas' market knowledge and manufacturing ecosystem with Atomberg's proprietary technology.
• Aims to strengthen domestic manufacturing and long-term supply chain resilience.

JV with Atomberg Innovation Private Limited

• Board approved binding term sheet with Atomberg Innovation for an Indian JV to develop and manufacture AC compressors.
• JV to be equally held; five directors (3 Voltas, 2 AIPL) per Definitive Agreements.
• Voltas to hold no shares in AIPL; not a related party transaction.
• Due diligence, execution of Definitive Agreements, and regulatory/other approvals required.

Financial results approved

• Unaudited standalone and consolidated results approved for quarter ended 30 June 2026.
• Consolidated: Total Income ₹4,765 cr; PBT ₹285 cr; PAT ₹213 cr.
• Standalone: Total Income ₹4,165 cr; Net profit ₹280 cr.
• Carry-forward Segment B order book ₹6,345 cr+.
• 1 million RAC units sold in 81 days.

JV with Atomberg

• Binding Term Sheet approved for India JV with Atomberg Innovation Private Limited to develop compressors.
• Equal ownership; five-director board (3 Voltas, 2 AIPL); terms in definitive agreements.
• Subject to due diligence, definitive agreements, and approvals.

Regulatory / litigation / overseas matters

• Qatar litigation: Court of Cassation ongoing; bank guarantees of ₹432.66 cr canceled; no financial impact expected.
• Note on litigation uncertainty; auditor's review states no material misstatement.
• Overseas UAE branch transfer to UMCL expected by 30 Sept 2026; no consolidated impact.

Communications

• Press release issued announcing JV with Atomberg to build room AC compressors.

Meeting Details

• Date: 14-08-2026.
• Time: 06:30 PM IST.
• Type/Mode: Group conference call, virtual.
• Organizer: PhillipCapital (India) Private Limited.
• Event: Q1FY27 earnings conference call.
• Recording: Proceedings will be recorded.

Participants

• Managing Director will participate.
• Chief Financial Officer will participate.
• Head Corporate Finance will participate.
• Head FP&A will participate.

Purpose

• Q1FY27 earnings results discussion and investor interaction.

Additional Notes

• Conference is virtual and intended for analysts and institutional investors.

Management changes

• Mr. Jogesh Jaitly will retire on 31 March 2027 and mentor Sehgal during transition.
• Mr. Karan Sehgal joins 3 Aug 2026 as Head Sales, Unitary Products, assuming role from 1 Oct 2026.
• Profile: former ITC Limited General Manager, Marketing Development, tobacco division.