Synopsis:
Vanguard Total International Stock Index Fund has acquired a fresh 1.01 percent stake in Voltas Ltd, valued at Rs 412.4 crore for 33.26 lakh shares, during the June quarter of 2025. The investment reflects the fund’s confidence in the Tata Group company’s fundamentals, even as the sector faced challenging conditions.
Foreign Institutional Investors (FIIs) witnessed heavy selling pressure in the Indian markets during July, offloading Rs 31,988 crore in the secondary market amid stretched valuations, weaker earnings, and rising global tariff tensions.
However, in contrast to this broad selling trend, one of the world’s leading investment firms, Vanguard Fund, chose to make a fresh investment in a prominent Tata Group company, signalling strong confidence in its long-term growth potential.
Voltas Ltd, a leading Indian company specializing in air conditioning and engineering solutions commands a market capitalisation of Rs 45,245.18 crore. It currently trades at Rs. 1,368.40.
What’s the news?
Vanguard Total International Stock Index Fund acquired a fresh stake of 1.01 percent in Voltas Ltd during the June quarter of 2025. The investment was valued at Rs 412.4 crore, translating to ownership of 33.26 lakh shares. This move underlines the fund’s growing interest in the Indian market and the company’s fundamentals, despite the challenging industry environment.
The fresh investment by Vanguard comes amid Voltas reporting its Q1 FY26 results, which reflected a sharp decline in performance due to unseasonal and unpredictable weather patterns. The delayed onset of summer, relatively mild temperatures, and early monsoon significantly impacted the demand for cooling products, particularly air conditioners.
The situation was further worsened by an exceptionally high base in the same quarter of the previous year, which had benefited from a harsh and prolonged summer driving record sales. Despite these headwinds, the company managed to retain its market leadership and maintain stability across its core business segments.
Quarter-on-Quarter (QoQ) performance, Voltas reported sales of Rs 3,939 crore in Q1 FY26, down 17.38 percent from Rs 4,768 crore in Q4 FY25. Net profit dropped sharply by 40.25 percent to Rs 141 crore from Rs 236 crore in the previous quarter. Operating profit margin (OPM) also contracted from 6 percent to 4 percent.
Year-on-Year (YoY) performance, On a yearly basis, sales fell 19.92 percent from Rs 4,921 crore in Q1 FY25 to Rs 3,939 crore in Q1 FY26. Net profit plunged 57.91 percent from Rs 335 crore in the year-ago period to Rs 141 crore this quarter. OPM also slipped from 8 percent to 4 percent, highlighting the impact of subdued demand and weaker operating leverage.
Also Read: 5 Stocks to buy now for an upside of up to 26%; Recommended By Motilal Oswal
Shareholding pattern as of June 30, 2025
Promoters hold 30.30 percent in Voltas Ltd, while FIIs own 21.16 percent. Domestic Institutional Investors (DIIs) collectively hold 33.15 percent, with major stakes from LIC at 3.68 percent, HDFC Life Insurance Co. Ltd at 1.54 percent, and SBI Life Insurance Co. at 2.70 percent.
The government holds 0.21 percent, and the public owns 15.17 percent of the company’s shares. Vanguard’s 1.01 percent stake adds to the FII shareholding, further diversifying its investor base.
Written By Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
