More Stories

Informist, Monday, Nov. 3, 2025

By Durva A. Shivalkar

Mumbai - Blue Star Ltd. is expected to report subdued earnings for the September quarter, as sales of room air conditioners were impacted by the extended monsoon and customers delaying their purchases as they expected lower prices after the cut in the goods and services tax. However, the company is likely to outperform its peers aided by a higher share of business-to-business projects, according to brokerages tracking the company.

The company's consolidated net profit for the September quarter is estimated at INR 932 million, down over 3% on year and down 23% over the trailing quarter, according to the average of estimates from six brokerages. The highest estimate for the September quarter net profit is INR 1.08 billion from Nirmal Bang Equities Pvt. Ltd., while the lowest estimate is INR 716 million from JM Financial Institutional Securities Pvt. Ltd.

Blue Star's net sales for the reporting quarter are expected to grow nearly 8% on year to INR 24.54 billion, according to the average of estimates. Sequentially, this implies a decline of nearly 18%. The highest estimate for revenue is INR 25.74 billion from Nirmal Bang and the lowest estimates is INR 23.65 billion by JM Financial.

The company's unitary products segment, which includes room air conditioners and commercial refrigeration equipment such as deep freezers, water coolers, and visi coolers, is expected to register a decline in volume due to high channel inventory and low demand due to the early onset of monsoon and an inconsistent summer, YES Securities (India) Ltd. said. On the other hand, the brokerage expects electro-mechanical projects and packaged air-conditioning systems to grow around 16% on year, supported by a healthy order book and continued demand.

Brokerages said the announcement of a GST cut in August led to inventory pile-ups as consumers and retailers postponed purchases until the end of September to benefit from lower GST rates. Some recovery in demand was visible in the northern and eastern regions of the country in the latter half of the quarter, partly aided by the implementation of the lower GST rate.

Blue Star's earnings before interest, tax, depreciation, and amortisation, or EBITDA, is expected at INR 1.56 billion for the September quarter, according to the average of estimates of four brokerages. The highest EBITDA estimate is INR 1.67 billion from Nirmal Bang and the lowest estimate is INR 1.36 billion by JM Financial. Brokerages expect the company's EBITDA margin to remain flat for the September quarter, as lower revenue and higher competition are likely to put pressure on profitability. Price adjustments and weaker operating leverage are also expected to weigh on margins, Nirmal Bang said. 

Investors will closely watch the company's commentary on inventory levels and festive season demand. The company will declare the September quarter financial results on Wednesday. For the June quarter, Blue Star reported a consolidated net profit of INR 1.21 billion, down over 28% on year, and a consolidated revenue of INR 29.82 billion, up over 4% on year.

Of the 10 brokerage reports available on the company with Informist, nine have a 'buy' rating on the stock with an average target price of INR 1,963, while one brokerage has a 'sell' call with a target price of INR 1,727.

On Monday, shares of Blue Star closed marginally lower at INR 1,934.40 on the National Stock Exchange. The stock is up over 9% since the company announced its earnings for the June quarter on Aug. 6.

Following are the Jul-Sept earnings estimates for Blue Star from six brokerage firms in descending order by the estimate of net profit in INR million:
 

End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.