Voltas Limited Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Voltas Limited (NSE:VOLTAS) last week released its latest first-quarter, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with ₹39b revenue coming in 9.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹4.25 missed the mark badly, arriving some 37% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Voltas' 33 analysts is for revenues of ₹156.4b in 2026. This reflects a meaningful 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 24% to ₹24.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹165.6b and earnings per share (EPS) of ₹27.91 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

View our latest analysis for Voltas

Despite the cuts to forecast earnings, there was no real change to the ₹1,370 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Voltas analyst has a price target of ₹1,800 per share, while the most pessimistic values it at ₹1,020. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Voltas' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. Factoring in the forecast slowdown in growth, it looks like Voltas is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Voltas. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹1,370, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Voltas analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Voltas .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.