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VoltasNSE:VOLTAS +4.88%88 Return-on-Tangible-Equity is 7.38% as of Mar. 2026, which is 39% below its 10-year median of 12.05. GuruFocus rates NSE:VOLTAS with a GF Score™ of 88/100 and a GF Value™ of ₹1,445.25 (Fairly Valued). The stock has 6 warning signs investors should review. Among 421 Furnishings, Fixtures & Appliances companies, Voltas ranks better than 53.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Voltas's annualized net income for the quarter that ended in Mar. 2026 was ₹4,647 Mil. Voltas's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹63,001 Mil. Therefore, Voltas's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.38%.
The historical rank and industry rank for Voltas's Return-on-Tangible-Equity or its related term are showing as below:
NSE:VOLTAS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.5 Med: 12.05 Max: 17.38
Current: 5.93
During the past 13 years, Voltas's highest Return-on-Tangible-Equity was 17.38%. The lowest was 2.50%. And the median was 12.05%.
NSE:VOLTAS's Return-on-Tangible-Equity is ranked better than 53.68% of 421
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 5.08
vs NSE:VOLTAS: 5.93
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Voltas Return-on-Tangible-Equity Related Terms
Voltas Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Voltas's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:VOLTAS vs SN, SGI, MHK: Return-on-Tangible-Equity Comparison
For the Furnishings, Fixtures & Appliances subindustry, Voltas's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Voltas Return-on-Tangible-Equity vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Voltas's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Voltas's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.38% mean?
Voltas (NSE:VOLTAS) has a Return-on-Tangible-Equity of 7.38% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Voltas and its competitors. This is 39% below median its historical median of 12.05. Over the past decade, Voltas' Return-on-Tangible-Equity has ranged from 2.50 to 17.38. According to the industry distribution chart, Voltas ranks #195 out of 421 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 46.3%.
Is Voltas' Return-on-Tangible-Equity too high?
Voltas' current Return-on-Tangible-Equity of 7.38% is 39% below median its 10-year median of 12.05. Over the past 10 years, this metric has ranged from a low of 2.50 to a high of 17.38. The Furnishings, Fixtures & Appliances industry median Return-on-Tangible-Equity is 5.08. Voltas' value of 7.38% is 45.3% above this industry median. Based on the distribution chart, Voltas ranks #195 out of 421 companies in the Furnishings, Fixtures & Appliances industry, which is above the industry midpoint. Overall, Voltas has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Voltas' Return-on-Tangible-Equity compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Voltas ranks #195 out of 421 companies for Return-on-Tangible-Equity. This puts Voltas in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.08. Voltas' value of 7.38% is 45.3% above this benchmark. Historically, Voltas' own Return-on-Tangible-Equity has ranged from 2.50 to 17.38 over the past decade. While the company's 10-year median is 12.05 vs. the industry median of 5.08, Voltas has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Furnishings, Fixtures & Appliances company?
The median Return-on-Tangible-Equity among Furnishings, Fixtures & Appliances companies is 5.08, based on 421 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Voltas's current Return-on-Tangible-Equity of 7.38% is 45.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Voltas and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Voltas's current Return-on-Tangible-Equity is 7.38%, which is 39% below median its own 10-year median of 12.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Voltas stock overvalued right now?
Based on GuruFocus' analysis, Voltas (NSE:VOLTAS) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,445.25, compared to a current price of ₹1,349.50 — trading 6.6% below its estimated fair value. The current Return-on-Tangible-Equity is 7.38%, which is 39% below median its 10-year median of 12.05 and 45.3% above the Furnishings, Fixtures & Appliances industry median of 5.08. Voltas' overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Voltas (NSE:VOLTAS), the current Return-on-Tangible-Equity is 7.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Voltas (NSE:VOLTAS) Overvalued in 2026?
Based on GuruFocus' analysis, Voltas stock appears to be undervalued.
The current stock price of ₹1,349.50 is trading 6.6% below its estimated GF Value™ of ₹1,445.25.
GuruFocus considers Voltas to be Fairly Valued.
Key valuation signals for NSE:VOLTAS:
Return-on-Tangible-Equity: 7.38% (39% below median its 10-year median of 12.05)
GF Value™: ₹1,445.25 vs. price of ₹1,349.50 (6.6% below fair value)
Industry Position: 45.3% above the Furnishings, Fixtures & Appliances median (#195 of 421)
No single metric tells the full story. See the NSE:VOLTAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Voltas Ltd is one of India's air conditioning companies. It provides engineering solutions for heating, ventilation, and air conditioning, refrigeration, textile machinery, and heavy equipment. Voltas has three operating segments: Unitary Cooling Products for Comfort and Commercial use, Engineering Products and Services, and Electro-Mechanical Projects and Services. The majority of its revenue is generated from the Unitary Cooling Products for Comfort and Commercial use segment. Remote monitoring and maintenance systems keep track of performance and strengthen relationships with customers. The majority of revenue comes from India, with the remainder split among the Middle East, Singapore, and other regions.
88GF Score
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