Voltas Cooling Business Profits Plunge 76% Amid Subdued Summer, GST Woes

In the second quarter of the fiscal year 2026 (Q2 FY26), Voltas Ltd, the Tata Group's air-conditioning manufacturer and engineering services provider, faced significant challenges in its cooling business. The company reported a 76.28% decline in its consolidated net profit to ₹31.5 crore, down from ₹132.83 crore in the same period a year earlier.

The company's revenue from operations also declined by 10.37% to ₹2,347.32 crore, compared to ₹2,619.11 crore in the corresponding quarter of the previous fiscal year. Voltas attributed this performance to "short-term headwinds" and "external challenges such as lean summer and GST-related demand deferment, which impacted retail offtake and margins."

However, the company's diversified portfolio helped mitigate the seasonality in the cooling business. The electro-mechanical projects and services segment, which includes domestic and international projects, saw a 9.8% increase in revenue to ₹966.17 crore. This growth "supported the diversified portfolio that Voltas manages, mitigating seasonality in the cooling business."

Looking ahead, Voltas' Managing Director Mukundan Menon C P expressed optimism, stating that "the GST reduction and upcoming BEE efficiency transition will unlock pent-up consumer demand in the upcoming quarters." The company remains focused on addressing the short-term challenges and maintaining its strong fundamentals to capitalize on the anticipated demand recovery.