Voltas Limited (NSE:VOLTAS) Half-Year Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Voltas Limited (NSE:VOLTAS) released its interim result to the market. The early response was not positive, with shares down 8.1% to ₹1,650 in the past week. Voltas reported in line with analyst predictions, delivering revenues of ₹75b and statutory earnings per share of ₹4.05, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Voltas

Taking into account the latest results, the most recent consensus for Voltas from 30 analysts is for revenues of ₹154.3b in 2025. If met, it would imply a reasonable 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 66% to ₹27.85. Before this earnings report, the analysts had been forecasting revenues of ₹154.2b and earnings per share (EPS) of ₹27.83 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹1,676, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Voltas analyst has a price target of ₹2,200 per share, while the most pessimistic values it at ₹1,100. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Voltas is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Voltas. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Voltas analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Voltas is showing 1 warning sign in our investment analysis , you should know about...

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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.