Air conditioner manufacturer Voltas Limited expects demand during the upcoming summer season to return to levels seen in 2024, following a weaker performance last year due to unseasonal rainfall.
The company anticipates improved consumer traction across cooling appliances as weather forecasts indicate a longer and warmer summer period.
Management commentary also highlights pricing adjustments, localisation efforts and new product introductions as part of its strategy for the season.
According to company management, demand during the previous peak season declined by nearly 25% as prolonged and unexpected rains affected sales of summer-oriented products such as air-conditioners and refrigerators.
With forecasts pointing towards a more typical summer this year, the company expects demand conditions to normalise.
Voltas projects domestic sales growth of around 15–20% compared with last year, reflecting expectations of improved seasonal consumption.
The company indicated that it does not foresee immediate capacity constraints ahead of the peak season. With an existing production capacity of approximately three million room air-conditioner units, current manufacturing capabilities are considered adequate to meet anticipated demand levels.
This preparedness is expected to help the company manage seasonal demand fluctuations without requiring near-term expansion.
Voltas expects air-conditioner prices to increase by around 5–15% during the year.
The anticipated price adjustment is linked to higher copper prices and the impact of currency movements, particularly a weaker rupee against the US dollar, which affects input costs.
These factors continue to influence pricing decisions across the consumer durables sector.
The company stated that it is working with government stakeholders to explore opportunities for increasing exports from India. At the same time, Voltas has reduced its import dependency significantly, bringing import content down from nearly 65% earlier to around 30–35%.
Management expects this figure to decline further to below 10% over the next two to three years, reflecting ongoing localisation efforts within its supply chain.
For the upcoming season, Voltas has introduced AI enabled air conditioners, marking the first integration of artificial intelligence features across its product range.
The company has also announced new brand endorsement partnerships aimed at strengthening marketing visibility during the high demand period.
Shares of Voltas Limited traded higher in early market activity on 25 February 2026, reflecting steady investor interest ahead of the summer demand cycle. The stock was quoted at ₹1,554.90, gaining ₹16.90 or 1.10% compared with the previous close of ₹1,538.00. During the session, the stock opened at ₹1,548.00 and moved within an intraday range of ₹1,535.50 to ₹1,560.90, indicating moderate volatility.
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Voltas’ outlook suggests a recovery in seasonal demand supported by favourable weather expectations and operational preparedness. Pricing adjustments, localisation initiatives and product innovation are expected to remain key factors shaping the company’s performance as the summer consumption cycle progresses.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Feb 25, 2026, 10:21 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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