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Informist, Tuesday, May 5, 2026

By Prateem Rohanekar

MUMBAI – Blue Star Ltd. is expected to report a year-on-year decline in net profit for the March quarter because of flat margins and weak revenues. The company is expected to report the lowest year-on-year revenue growth in the quarter among its peers on weak demand for room air conditioners and an on-year decline in revenue from professional electronic and industrial systems.

For the March quarter, Blue Star is expected to report a consolidated net profit of INR 1.92 billion, down over 1% on year, according to an average of estimates from nine brokerages. The company's net sales for the quarter are estimated at INR 43.42 billion, up over 8% on year, as per the average of estimates.

The highest estimate for the company's net profit is INR. 2.17 billion from Batlivala & Karani Securities India Pvt. Ltd. and the lowest is INR 1.69 billion from Motilal Oswal Financial Services Ltd. The highest estimate for net sales is INR 45.33 billion, again from Batlivala & Karani, and the lowest is INR 40.80 billion from JM Financial Institutional Securities Pvt. Ltd.

Blue Star's revenue for the March quarter will be hit by weak demand for room air conditioners, according to JM Financial. The brokerage expects the company's products segment to also be hit by a delay in projects following the outbreak of war in West Asia. JM Financial expects Blue Star to report lower year-on-year revenue growth for the reporting quarter than its rivals LG Electronics Ltd. and Voltas Ltd.

Kotak Securities Ltd. expects Blue Star to report moderate revenue growth of 7.6% on year, led by an 8% year-on-year revenue growth in the unitary products segment. The growth in the unitary products segment is supported by price hikes following the transition in Bureau of Energy Efficiency norms and steady traction in commercial refrigeration.

The electromagnetic projects and commercial air-conditioning segment is also seen growing 8% on year, though the company's overall margins may remain under pressure due to the closure of low-margin infrastructure projects. Meanwhile, revenues from professional electronic and industrial systems are likely to decline 8.2% on year due to regulatory headwinds in the medical technology segment, according to Kotak Securities.

Blue Star will announce its earnings Wednesday. Monday, the stock closed 1.2% higher at INR 1802.20. The company's shares are up 4% since the company reported its December quarter earnings on Jan. 29.

Of the 10 brokerage reports on the company available with Informist, seven have a "buy" or equivalent recommendation on the stock with an average target price of INR 1,994, nearly 11% higher than the current price. Two brokerages have a "hold" or equivalent call and one says "sell".

Following are the March quarter earnings estimates, in INR billion, for Blue Star Ltd. from nine brokerages in descending order of the net profit estimate:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajeev Pai

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