Voltas shares tumble 12% despite Rs 132-crore profit in Q3, here's why 

Shares of air-conditioning maker and engineering services provider Voltas Ltd tumbled 12% in early deals on Thursday after the firm reported weaker-than-expected Q3 earnings. Voltas stock fell 12.21% to Rs 1296 on BSE today. Market cap of the firm slipped to Rs 43,599 crore. Total 2.16 lakh shares of the firm changed hands amounting to a turnover of Rs 28.56 crore on BSE. 

Voltas shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages. The large cap stock has gained 29 per cent in a year and but fallen 28.28 per cent in 2025.

The firm reported a net profit of Rs 132 crore in the December 2024 quarter against a Rs 30 crore loss reported in the corresponding quarter of the previous financial year. Revenue from operations climbed 18 percent year-on-year to Rs 3,105 crore against Rs 2,626 crore revenue from operations in Q3 of FY24. Total income rose 18% to Rs 3,164 crore in Q3 against Rs 2,684 crore income earned in Q3 of previous financial year.

Global brokerage Goldman Sachs assigned a sell call Voltas stock with a target price of Rs 1400. The brokerage said it was overall a soft quarter. The company reported a marginal beat on topline, but margins were significantly lower mainly driven by UCP segment at 5.9% showcase heightened competitive intensity & cos’ attempt to retain market share.

Goldman Sachs said the EPS business faced more headwinds in Q3 resulting in a revenue & sharp margin fall. Beko's operational numbers of 56% volume growth in 9 months after six years of operations has still resulted in continued EBIT losses. 

On the other hand, Morgan Stanley maintained overweight call with a target price of Rs 1,975. 

Lower UCP margins lead to miss due to competition, said the brokerage adding that Voltbek gained market share in refrigerators and washing machines. 

ICICI Securities has assigned a price target of Rs 1,630 to the Voltas stock. 

"We believe only disappointment was 5.9% EBIT margin (lowest in 30 quarters) of UCP segment likely led by higher discounts and brand building efforts. Factoring in 9MFY25, we raise FY25 estimates by 3.5% and cut FY26–27E earnings by 4% We believe the stock’s price correction of 24% over the past four months offers valuation support. We upgrade Voltas to ADD, from Hold, with a DCF based revised target  price of Rs 1,630," said ICICI Securities.