Voltas reports H1 FY26 profit decline amid market challenges

Voltas Limited's board of directors approved the unaudited standalone and consolidated financial results for Q2 and H1 FY26 on November 13, 2025. Consolidated total income for H1 FY26 decreased to ₹6,433 crores from ₹7,726 crores in H1 FY25, with profit before tax (PBT) falling to ₹257 crores from ₹657 crores and profit after tax (PAT) to ₹172 crores from ₹468 crores. Standalone income from operations also saw a decline, reaching ₹4,456.83 crores in H1 FY26 compared to ₹5,578.28 crores in H1 FY25, with standalone PBT at ₹249.35 crores, down from ₹588.57 crores year-over-year.

The company attributed these results to external challenges, including a lean summer, GST-related demand deferment, and impacts on retail offtake and margins. Unitary Cooling Products reported a Q2 FY26 loss of (₹46) crores but maintained market leadership through product innovation and channel expansion. Electro-Mechanical Projects and Services, along with Engineering Products, acted as stabilizers, reinforcing Voltas' diversified growth model.

A significant reclassification of ₹279.61 crores from trade receivables to contract assets occurred in FY25, aligning with accounting standards. Additionally, Voltas is actively engaged in legal proceedings related to bank guarantees of ₹406 crores concerning an overseas project, although no further provisions have been made due to the company's confidence in its legal standing.