Higher marketing spends drag Voltas’ profit by Rs 100 crore in Q2FY26

New Delhi: Voltas Limited reported a sharp decline in its profit for the quarter ended September 30, 2025, as higher marketing expenses and subdued consumer demand weighed on its performance.

The company posted a consolidated total income of Rs 2,412 crore for Q2 FY26, compared to Rs 2,725 crore in the same quarter last year. Profit before tax dropped to Rs 54 crore from Rs 205 crore in the previous quarter, while net profit fell to Rs 32 crore against Rs 133 crore in Q2 FY25.

According to the company, margins were temporarily impacted by higher marketing support, which was aimed at boosting brand visibility and preparing for future demand. However, this increase in marketing expenditure, coupled with weaker retail sales, led to a decline in profitability during the quarter.

The Unitary Cooling Products (UCP) segment, which includes air conditioners and cooling appliances, was hit by muted retail offtake. The company said the lag effect of the early monsoon and the reduction in GST rates from 28% to 18% led to deferred consumer purchases and higher inventory levels across the channel.

Segment revenue from the UCP division stood at Rs 1,215.13 crore in Q2 FY26, compared to Rs 1,582.19 crore in the corresponding period last year and Rs 2,867.86 crore in Q1 FY26. Despite the challenges, Voltas said it managed to improve its market share sequentially, reinforcing its leadership in the cooling products category.

Commenting on the results, Mukundan Menon C P, Managing Director, Voltas Limited, said, “The second quarter of FY26 was marked by external challenges, but our fundamentals remain strong. The GST reduction and upcoming BEE efficiency transition will unlock pent-up consumer demand in the coming quarters. Our integrated strategy, diversified portfolio, and focus on product innovation and channel revitalisation position us well for sustainable growth and value creation.”

While Voltas’ profitability was under pressure this quarter, the company remains optimistic that increased marketing investments and upcoming policy changes will help revive consumer demand and strengthen its growth trajectory in the second half of the fiscal year.