Overview

• Unseasonal rains in May and June have driven a 15–20% year-on-year slump in India’s room air conditioner sales, Jefferies estimates
• Blue Star slashed production by 20% in May and over 25% in June after demand failed to materialize
• Channel inventories have risen to six to eight weeks, leading Voltas to roll out incentives such as free installation and extended warranties
• Nuvama lowered Voltas’s target price to Rs1,190 with a hold rating and Motilal Oswal cut to neutral at Rs1,350, while UBS maintained a buy rating with a Rs1,725 target
• Dealers are expected to clear stock ahead of new BEE energy efficiency norms effective January 1, 2026, which could spark a Q3 sales recovery