This LIC-backed Tata Group stock gets mixed brokerage targets after Q2 results — What should investors do?

Tata Group company Voltas Ltd reported a sharp decline in its September quarter (Q2 FY26) performance, as weak summer demand and GST-related purchase delays impacted its core cooling products business.

Voltas shares were trading at Rs 1,361.40, up 1.8 per cent, with LIC holding a 5.14 per cent stake (1.7 crore shares).

Voltas Q2 Results

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The air-conditioning and engineering services major posted a 76.28 per cent drop in consolidated net profit to Rs 31.5 crore, compared with Rs 132.83 crore in the same period last year.

Revenue from operations also fell 10.37 per cent year-on-year to Rs 2,347.32 crore, as the company faced subdued retail demand, muted offtake and pressure on margins.

Total income declined 11.47 per cent to Rs 2,411.93 crore, while total expenses reduced by 6.65 per cent to Rs 2,321.29 crore.

Voltas said the quarter was affected by “external challenges,” including an unusually mild summer and the GST rate reduction impact on air conditioners, from 28 per cent to 18 per cent, which led customers and dealers to defer purchases.

The company highlighted that these factors resulted in higher channel inventory and lower absorption at its new facilities in Chennai and Waghodia.

Voltas Share Price History

Brokerages shared mixed reactions to Voltas’ Q2 results. Morgan Stanley maintained an Equal-weight rating with a target price of Rs 1501, implying about 11.5 per cent upside from the current market price.

Jefferies stayed positive with a Buy call and a higher target of Rs 1670, indicating around 22.7 per cent upside.

Macquarie remained cautious with a Neutral rating and a target of Rs 1358, suggesting a slight downside of 0.2 per cent.

Meanwhile, CLSA held a negative view, keeping its Hold rating with a target of Rs 1170, reflecting a 14 per cent downside.

Most brokerages pointed out that the weak performance of the cooling products segment remains the biggest concern, and any meaningful recovery will depend on festive-season demand and how quickly channel inventory normalises.