Blue Star flags challenge in managing margins amid rising input costs
This story was originally published at 16:41 IST on 7 May 2026
Register to read our real-time news.Informist, Thursday, May 7, 2026
MUMBAI – Blue Star Ltd. Thursday said managing its current margins will be a challenge amid rising input costs and volatile foreign exchange rates. Additionally, it flagged risks of supply-chain disruptions because of the war in West Asia, which it says can dampen prospects of growth.
The consumer durables firm said in its investor update for the March quarter and the financial year 2025-26 (Apr-Mar) that it remains "cautiously optimistic" about its prospects for FY27 in the current environment. Blue Star noted that summer set in from the second week of April and secondary sales of room air conditioners picked up momentum. "Driven by the encouraging demand from manufacturing and data centre sectors, Electro-Mechanical Projects and Commercial Air Conditioning business segment is expected to maintain growth momentum," it said.
Blue Star's unitary products segment reported a net profit of INR 2.07 billion for the March quarter, against INR 1.64 billion for the year-ago quarter. The unitary segment reported revenue of INR 19.85 billion for the quarter, up 1.3% on year. The company is confident about the medium-term prospects for its commercial air-conditioning systems business and expects steady growth across key product categories, as per its investor update.
The company's revenue from electro-mechanical projects and commercial air-conditioning systems for the March quarter grew 1.1% on year to INR 19.90 billion. The segment's net profit for the quarter was INR 1.28 billion, as compared with INR 1.50 billion for the year-ago quarter.
The ambiguity in the regulatory policy framework for the medical technology solutions business remains, as per the investor update. The company said its business in the segment had slowed down because of this policy uncertainty.
Blue Star's professional electronics and industrial systems net profit for the reporting quarter was INR 143 million, up from INR 87 million in the year-ago quarter. The segment's revenue for the reporting quarter grew 7.3% on year to INR 972 million.
Blue Star expects global headwinds but remains optimistic about its business operations in the US and the UK. "Geopolitical uncertainty, including tariff-related uncertainties, persist. The future prospects of the US business is highly dependent upon the outcome of the India-US trade deal. However, despite this headwind, our foray into the US is progressing well," the company said. End
Reported by Prateem Rohanekar
Edited by Rajeev Pai
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. 2026. All rights reserved.
To read more please subscribe
Share this Story:
