Voltas Q2 FY27 Results (NSE: VOLTAS)
Signal: Growth decelerated
The read
The trajectory has turned upward after the Q1FY27 rebound: total income grew 13.9% YoY and PAT 51.5%, led by 32% RAC volume growth and UCP's turnaround to ₹19.74 crore, but the ₹41.10 crore JV/associate loss and 18.8% YoY decline in Projects result remain constraints on consolidated earnings quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,746.08 Cr | +13.9% | -42.4% |
| Net profit | ₹47.71 Cr | +51.5% | |
| EPS | ₹1.59 | +54.4% |
P&L walk
Total income rose 13.9% YoY to ₹2746.08 crore and PAT rose 51.5% to ₹47.71 crore, helped by gross-margin expansion and a turnaround in UCP, although the ₹41.10 crore JV/associate loss and project-segment softness limited operating conversion.
Segments
UCP drove the consumer recovery, with revenue up 29% YoY and segment result turning positive at ₹19.74 crore from a ₹45.80 crore loss, while Engineering Products and Services grew to ₹185.39 crore revenue and ₹52.85 crore result; Projects remained the largest profit contributor at ₹74.75 crore but its result fell 18.8% YoY from ₹92.04 crore.
Key positives
- RAC volume grew 32% YoY, supporting 29% UCP revenue growth to ₹1566.79 crore and maintaining 17.4% market share with a 4.2 percentage-point lead.
- UCP segment result improved from a ₹45.80 crore loss to a ₹19.74 crore profit, indicating recovery despite commodity and currency pressures.
- Gross margin expanded approximately 180bps YoY to 29.9%, with management citing calibrated pricing, localisation, sourcing efficiencies, product redesign and manufacturing productivity.
- Engineering Products and Services revenue rose 33.3% YoY to ₹185.39 crore and segment result rose 20.9% to ₹52.85 crore.
- H1 operating cash flow increased 88.4% YoY to ₹326.92 crore, while trade receivables declined to ₹1717.14 crore from ₹3034.95 crore.
Key concerns
- Projects segment result declined 18.8% YoY to ₹74.75 crore despite revenue growth, leaving execution and profitability conversion as a key watchpoint.
- Finance costs rose 55.1% QoQ to ₹19.77 crore as borrowings increased to ₹1513.46 crore from ₹966.40 crore at year-end.
- PAT fell 77.6% QoQ to ₹47.71 crore from ₹212.76 crore, reflecting the seasonal nature of the business and the exceptionally strong Q1 base.
- Voltbek delivered record Q2 sales and market-share gains, but the filing does not disclose its segment revenue, profitability or EBITDA breakeven.
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