More Stories

Informist, Wednesday, May 13, 2026

By Shakshi Jain

NEW DELHI – After a 13% rise in costs due to the new star labelling norms by the Bureau of Energy Efficiency and surging raw material prices amid the West Asia war, Blue Star Ltd.'s expenditure may rise by another 3-4% owing to higher plastic prices and if diesel prices increase, according to Managing Director B. Thiagarajan.

"The prices have gone up by 13%. So, another 2% it may go up because of the plastics and transportation cost may account for another one or two percent," Thiagarajan told Informist on the sidelines of the Annual Business Summit 2026 hosted by the Confederation of Indian Industry.

Of the 13% increase, only 8% has been passed on to consumers so far. The company's operating margin is expected to be under pressure through the year despite the healthy demand seen so far this summer. "In a high growth year, the operating margin should be in the order of something like 10%...it is a high growth season but margin is going to be 8%...we have said 8% to 8.5%, it should have been 9.5% to 10%," Thiagarajan said.

This pressure will, however, not impact the company's dividend distribution for the year, according to Thiagarajan. "There is a dividend distribution ratio. That is what we will maintain. There is a clearly laid out policy," he said.

For FY26, Blue Star recorded a consolidated net profit of INR 5.28 billion on revenue of INR 124.02 billion. The company's total expenses for the 12 months added up to INR 117.23 billion.

Thiagarajan said the air conditioner industry in India continues to grow, and the company will stay focused on growth in the segment. Blue Star aims to increase its market share in the domestic room air conditioner segment to at least 14.75% in FY27 from around 14.25% currently, he said, adding that there is no worry regarding other categories where the company enjoys a market share of over 30%.

The top executive also anticipates a boom in the consumer durables industry on the back of reconstruction which would commence once the war in West Asia comes to an end. The company has a small presence in the region currently, which continues to expand as part of the general strategy, but it is yet to take a call on stepping up efforts in light of the upcoming opportunity, Thiagarajan said.

Thiagarajan ruled out expansion into a new category of white goods but said the company might expand geographically. "We are in North America, we're in Europe, that has been the focus," he said.  End

Edited by Avishek Dutta

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.