Voltas Q1 profit up 52.2%; joins hands with Atomberg to make AC compressors

Voltas Ltd on Friday reported a strong first quarter for FY27, with consolidated net profit rising 52.2% year-on-year to ₹214 crore, while revenue from operations increased 18.7% to ₹4,673.5 crore. EBITDA rose 48.7% to ₹265.5 crore, with the EBITDA margin improving to 5.7% from 4.5% a year ago.

The company also announced a strategic move into indigenous air-conditioner compressor manufacturing, signing a binding term sheet with Atomberg Innovation Private Limited to set up a joint venture in India.

AC business drives Q1 growth

Voltas’ core unitary cooling products segment reported revenue of ₹3,794 crore in Q1 FY27, up from ₹2,868 crore in the year-ago quarter. Segment results more than doubled to ₹202 crore from ₹104 crore.

Room air-conditioner volumes grew 45% year-on-year, while Voltas said it sold 1 million room ACs in just 81 days. The company also reported a 17.3% secondary market share for FY27 through June, widening its lead over the nearest competitor to four percentage points.

“Q1 FY27 has been a defining quarter for Voltas, reflecting the strength of its brands, the resilience of the business model, and the effectiveness of its long-term strategy,” managing director Mukundan Menon C P said.

Voltbek, Voltas’ home appliances business, also recorded its highest-ever quarterly sales in both value and volume. Its year-to-date market share stood at 9.4% in washing machines and 7.4% in refrigerators.

Voltas, Atomberg plan indigenous compressor JV

Alongside the earnings announcement, Voltas said its board had approved entering into a binding term sheet with Atomberg Innovation for a proposed joint venture to develop, manufacture and commercialise room AC compressors in India.

The proposed JV is envisaged on an equal shareholding basis, with a five-member board comprising three Voltas nominees and two from Atomberg. However, definitive agreements are yet to be executed, and the transaction remains subject to due diligence and applicable approvals.

Voltas will serve as the anchor customer, providing a demand base, while Atomberg will be the technology partner. The proposed venture will also have the flexibility to supply compressors to other customers.

“Compressor is the heart of an air-conditioner and is central to its performance, energy efficiency and reliability,” Menon said, adding that the partnership is aimed at building indigenous technology capability and strengthening long-term supply-chain resilience.

The company’s electro-mechanical projects and services segment had a carry-forward order book of over ₹6,345 crore as of June 30, although new international order bookings remained delayed due to the West Asia conflict.