rewrite this title and make it good for SEOVoltas shares dip 3% after Q2 PAT falls 76% YoY to Rs 32 crore. Check latest target price

Shares of Voltas Ltd fell 2.9% to a day’s low of Rs 1,298.20 on Friday after the company reported a sharp 76% year-on-year (YoY) decline in net profit for the second quarter ended September 30, 2025.

The Profit After Tax (PAT) stood at Rs 32 crore, down significantly from Rs 133 crore in Q2 FY25. The steep drop in profitability came despite a recovery in some business segments, indicating margin pressure and operational headwinds during the quarter.

However, around 10 am, the stock rebounded from its earlier lows and was trading 0.5% higher at Rs 1,344.20 on the BSE.

Total income declined 11.5% YoY to Rs 2,412 crore, compared with Rs 2,725 crore in the same period last year. On the operating front, Profit Before Tax (PBT) plunged 73.7% YoY to Rs 54 crore, down from Rs 205 crore a year ago.

From a segment perspective, the company’s flagship Unitary Cooling Products division reported Q2 revenue of Rs 1,215 crore, but remained in the red with a loss of Rs 46 crore, underscoring weak cooling product demand and continued cost pressures.

The Electro-Mechanical Projects and Services segment posted revenue of Rs 966 crore with a profit of Rs 92 crore, while the Engineering Products and Services segment contributed Rs 139 crore in revenue and Rs 44 crore in segment profit.On a half-yearly basis, the company’s PAT stood at Rs 172 crore, down 63.2% YoY from Rs 468 crore in H1 FY25. Total income for H1 FY26 also declined 16.7% YoY to Rs 6,433 crore, compared with Rs 7,726 crore in the year-ago period.“The period was marked by external challenges such as lean summer and GST-related demand deferment, which impacted retail offtake and margins. Despite these short-term headwinds, Voltas retained its market leadership and continued to strengthen its strategic position through product innovation, manufacturing excellence, and channel expansion, while its diversified portfolio, including Electro-Mechanical Projects and Services and Engineering Products, acted as a stabilizer, reinforcing Voltas’ evolution into a comprehensive consumer durables and engineering solutions enterprise,” the company said in its press release.

Post the Q2 results, domestic brokerage firm JM Financial said that they have maintained an ‘Add’ rating on the stock, with a target price of Rs 1,495.

“Voltas’s 2Q performance was lower than our and Street estimates. While revenue performance was not much of a surprise, EBIT loss in the UCP business, lower-than-expected other income, and higher-than-expected finance costs impacted 2Q performance. That said, the company claims to have gained market share sequentially within the RAC business,” JM Financial stated.

Voltas’ total gross debt has risen from Rs 8.6 billion as of March 2025 to Rs 17.3 billion as of September 2025, driven primarily by an increase of Rs 8.2 billion in short-term debt, while long-term debt increased by Rs 405 million.

Net working capital days stood at 51 days as of September 2025, up from 25 days in March 2025. The rise was largely due to higher inventory levels, while receivable and payable days remained largely unchanged.

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