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Informist, Thursday, Jan. 29, 2026

By Afra Abubacker & Gunjan Rajput 

NEW DELHI – Blue Star Ltd. reported a double-digit decline in its bottom line for the December quarter as exceptional expenses, including a one-time cost incurred to implement the new Labour Codes, weighed on earnings. The company would have met analysts' consensus estimates if not for the inclusion of exceptional costs. 

The company's consolidated net profit for the December quarter fell by over 39% on year and nearly 19% sequentially to INR 806.60 million. Analysts had estimated the company's net profit at INR 1.29 billion, which is lower than the company's net profit excluding exceptional costs at INR 1.37 billion. The company incurred a one-time cost of INR 563.5 million for implementing the new Labour Codes. 

The company's consolidated revenue from operations for the reporting quarter was INR 29.25 billion, up over 4% on year and nearly 21% on quarter. Analysts had estimated the company's net revenue at INR 30.56 billion.  

The company's total income was INR 29.37 billion for the reporting quarter, up by over 4% from INR 28.16 billion a year ago. Blue Star's total expenses rose nearly 5% to INR 27.73 billion from INR 26.49 billion a year ago. The cost of materials consumed was INR 21.19 billion, up nearly 2%. Purchase of stock-in-trade rose over 55% to INR 4.26 billion. 

For the December quarter, the consolidated operating margin rose 7.55% from 7.46% a year ago, while operating profit rose to INR 2.21 billion from INR 2.09 billion a year ago.

In the reporting quarter, revenue from the unitary products segment was almost flat on year at INR 11.54 billion . The company's revenue from the electro-mechanical projects segment rose 8.6% on year to INR 16.96 billion. 

The company's carried-forward order book was INR 68.99 billion as of Dec. 31, up 1% on year. Blue Star's air conditioner business showed modest growth, primarily driven by channel partners building inventory, the company said in its investor presentation.

Blue Star reported a decline in its consolidated profit for Apr–Dec, even as revenue rose on year for the same period. The company's consolidated net profit for the nine months ended December was INR 3.01 billion, down more than 24% from INR 3.98 billion a year ago. The company's consolidated revenue for the period increased to INR 83.30 billion, up nearly 5% from INR 79.49 billion a year ago. 

"The company expects Q4FY26 (Jan-Mar) to be a strong quarter for room ACs, commercial air conditioning and commercial refrigeration businesses. In anticipation of robust growth in FY27 (2026-27), the company is continuing to expand distribution and invest in R&D, manufacturing, digitalisation and the brand, while introducing cost-optimisation and productivity improvement measures. We are hopeful that Q4FY26 (Jan-Mar) will be an encouraging quarter," said Chairman and Managing Director Vir S. Advani.

The company announced its earnings after market hours. Thursday, Blue Star shares closed at INR 1,732.50 on the National Stock Exchange, up 1.8% from the previous close.  END

Edited by Saji George Titus

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