Voltas Q2 profit down 76.3 pc to Rs 31.5 cr

New Delhi, Nov 13 (PTI) Air-conditioning manufacturer and engineering services provider Voltas Ltd on Thursday reported a 76.28 per cent decline in consolidated net profit to Rs 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 Rs 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 per cent to Rs 2,347.32 crore in the September quarter of FY26 as compared to Rs 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 Rs 2321.29 crore, down 6.65 per cent in the September quarter of FY26.

Voltas' total income, which includes other income, declined 11.47 per cent to Rs 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 Rs 6,432.58 crore, a decline of 16.73 per cent.

In the September quarter, Voltas' revenue from "unitary cooling products for comfort and commercial use", which has room AC business, was down 23.2 per cent to Rs 1,215.13 crore. It was at Rs 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 per cent in the September quarter to Rs 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 per cent to Rs 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 Rs 1,326.60 apiece on BSE, down 0.64 per cent from the previous close. PTI KRH KRH DR DR