Voltas’ Q2 FY26 profit falls ₹100 crore as higher marketing spend hits margins

Voltas Ltd. reported a decline in profit for the quarter ended Sept. 30, 2025, as increased marketing expenses and muted consumer demand impacted its performance.

The company’s consolidated total income stood at ₹2,412 crore for the second quarter of fiscal 2026, down from ₹2,725 crore in the same period last year. Profit before tax dropped to ₹54 crore from ₹205 crore in the previous quarter, while net profit fell to ₹32 crore from ₹133 crore in the year-ago quarter.

According to Voltas, profit margins were temporarily affected by higher marketing support aimed at enhancing brand visibility and preparing for future demand. The company said the additional expenditure, along with softer retail sales, led to a decline in quarterly profitability.

The Unitary Cooling Products (UCP) segment, which includes air conditioners and other cooling appliances, was hit by subdued retail offtake. Voltas attributed this to the lag effect of an early monsoon and the reduction in GST rates from 28% to 18%, which it said prompted consumers to delay purchases and contributed to higher channel inventories.

Revenue from the UCP division stood at ₹1,215.13 crore in Q2 FY26, compared with ₹1,582.19 crore a year earlier and ₹2,867.86 crore in Q1 FY26. Despite the slowdown, the company said it improved its sequential market share within the category.

Managing Director Mukundan Menon C.P. said that while the second quarter posed external challenges, the company remains confident that GST changes and upcoming energy-efficiency transitions will spur demand in the coming quarters.

Voltas said it expects the increased marketing investments and policy tailwinds to support growth in the second half of the fiscal year.