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Voltas boosts prices to offset commodity and currency pressures
The company raised prices about 12% this year, including 7% tied to revised BEE star ratings, as copper prices and rupee weakness weighed on margins.
Voltas is focused on gaining market share and growing absolute profit, even as margins take time to recover, according to LiveMint Markets.
The outlet said Voltas’s room air conditioner business has gained traction, with market share rising to 18.6% in July from 15.9% in FY26, and 17.5% year to date, while channel inventory fell to below 30 days. Still, consolidated EBITDA margin declined from 7.2% in FY25 to 4.5% in FY26, pressured by higher copper prices, a weaker rupee, and competition.
LiveMint Markets added that Voltas raised prices by around 12% this year, with about 7% linked to revised BEE star ratings and about 5% to offset commodity and currency pressures. The company also reduced some promotional schemes and free installation benefits, though the benefits are expected with a time lag because some of the price increases could be absorbed by persistently high commodity costs.
The outlet noted that EBITDA margin was 5.7% in Q1FY27 and is expected at 6.1% for FY27, alongside cost optimization that should become more visible ahead. It also pointed to operational levers such as higher in-house manufacturing at the Chennai plant and limited margin improvement potential from utilization, since both RAC plants are operating near full capacity, while Voltas expands into commercial air conditioning and other higher-margin areas including commercial refrigeration and data-centre MEP work with about ₹200 crore of orders.
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