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Informist, Thursday, Aug. 6, 2026

 

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--Blue Star Apr-Jun consol net profit INR 1.03 bln 
--Analysts saw Blue Star Apr-Jun consol net profit at INR 1.52 bln 
--Blue Star Apr-Jun consol revenue INR 33.78 bln 
--Analysts saw Blue Star Apr-Jun consol revenue at INR 35.38 bln 
--Blue Star Apr-Jun consol PAT INR 1.03 bln vs INR 1.21 bln year ago 
--Blue Star Apr-Jun consol revenue INR 33.78 bln vs INR 29.82 bln yr ago 
--Blue Star Apr-Jun consol operating margin 5.18% vs 6.71% year ago 
--Blue Star Q1 consol unitary pdt sales INR 16.89 bln vs INR 14.99 bln yr ago 
--Blue Star Q1 consol electromechanical, commercial AC sales INR 16.25 bln 
--Blue Star Q1 consol electromechanical, commercial AC sales up 15% on year 
--Blue Star Apr-Jun consol EBITDA margin 5.2% vs 6.7% yr ago 
--Blue Star Apr-Jun consol EBITDA INR 1.75 bln vs INR 2.00 bln yr ago 
--Blue Star forward order book INR 77.64 bln on Jun 30, up 13.5% on yr 
--Blue Star: Electromechanical ops got orders for data centres projects 
--Blue Star: Data centre projects expected to aid growth in coming qtrs 
--Blue Star: To balance volumes, margins amid volatile commodity prices 
--Blue Star: FY27 outlook cautious on West Asia war, mkt uncertainties 

 

By Avishek Rakshit

 

KOLKATA – Blue Star Ltd. Thursday posted a decline of more than 15% on year in its consolidated net profit for the June quarter, even as its revenue increased. The decline in profit is mainly due to cost pressures. The company's input costs grew at a higher rate than revenue.

 

Blue Star's consolidated top line for the quarter grew over 13% on year to around INR 34 billion, against the Street's estimate of over INR 35 billion. The net profit also missed the Street's projection of INR 1.52 billion by INR 490 million. This is the third time the company has reported a fall in its net profit in any quarter in the past two financial years.

 

In a statement, Blue Star said the company's revenue for the June quarter grew despite multiple headwinds, including an unprecedented escalation in commodity costs, which necessitated price increases, the delayed onset and abrupt end of the summer season, and a significant pile-up of inventory of old room air conditioners in its sales channels. Informist has been reporting that deep discounting after price increases had helped air-conditioner dealers clear their unsold stocks during Apr-May.

 

Driven by improved working capital levels, the company's net cash position as on Jun. 30 improved to INR 9 billion from around INR 4 billion in the year-ago quarter.

 

"Commodity prices and exchange rates, however, remain highly volatile, and our endeavour will be to prudently balance volume growth and margins across our product businesses," Vir S. Advani, chairman and managing director at Blue Star, said in a statement. "At the same time, we will continue to invest in research and development, with a strong focus on value analysis, value engineering, and product optimisation to enhance competitiveness. We will also remain focused on controlling operating costs and maintaining a strong balance sheet."

 

Blue Star's purchase of stock-in-trade increased around 40% on year to INR 5 billion, and cost of materials increased over 3% on year to INR 21 billion in the quarter. Other expenses increased over 15% on year to INR 3 billion, which eventually led to its total expenses increasing over 15% on year to nearly INR 33 billion.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation declined to INR 1.75 billion in the June quarter as against INR 2 billion in the year-ago quarter. The EBITDA margin fell to 5.2% in the June quarter from 6.7% in the year-ago quarter.

 

Blue Star's revenue from the electro-mechanical projects and commercial air-conditioning systems segment grew 15% on year to over INR 16 billion in the June quarter. The pre-tax profit fell marginally to a little over INR 1 billion.

 

The company said it witnessed strong order bookings in the projects business, driven by investments in data centres. However, order inflow from other market segments, including commercial offices, factories, and infrastructure, remained sluggish as cost escalations arising from the war in West Asia led to the deferment of order finalisations. 

 

Blue Star currently continues to witness strong enquiry momentum from the data centre sector, providing confidence in the medium-term prospects of this business. Given the escalation in input material costs, the company continues to exercise caution in project selection while also accelerating the closure of large infrastructure projects. 

 

The commercial air-conditioning business reported robust order bookings during the quarter, driven by demand from the industrial, retail, and healthcare sectors. Based on the healthy enquiry pipeline and order inflow, the growth prospects for the remainder of the year appear positive for the electro-mechanical projects and commercial air-conditioning systems segment, Blue Star said.

 

The company's unitary products segment, comprising room air conditioners and commercial refrigeration, recorded growth of around 13% on year to nearly INR 17 billion, but the pre-tax profit from the segment declined to around INR 497 million from INR 874 million in the year-ago quarter. 

 

Blue Star said that owing to the delayed onset of the summer season, there was pressure to liquidate the inventory pile-up with the sales channels during the quarter. While the company attempted to pass on part of the impact of cost escalation through primary sales, market operating prices remained subdued. 

 

Despite the short summer window, investments in advertising, trade schemes, and consumer finance offers supported healthy tertiary sales. However, the company was unable to achieve the desired primary sales volume growth, which in turn affected its margin.

 

The commercial refrigeration business witnessed a decline during the quarter as demand for deep freezers from ice-cream manufacturers remained muted, but it expects demand to pick up during the forthcoming festival season.

 

Blue Star's revenue from the professional electronics and industrial systems business declined nearly 10% on year to nearly INR 636 million in the June quarter, but the pre-tax profit improved to around INR 96 million, against INR 76 million in the year-ago quarter. 

 

The decline in professional electronics and industrial systems revenue was mainly on account of continued challenges in its business arm, MedTech Solutions, which provides new and refurbished medical diagnostic imaging systems, pre-sales consulting, and 24x7 technical support to hospitals and diagnostic centres across India.

 

"While the medium-term fundamentals of the HVAC&R (heating, ventilation, air conditioning, and refrigeration) industry remain strong, the ongoing conflict in West Asia and the resulting market uncertainties warrant a cautious outlook for the remainder of the financial year," Advani said. 

 

Blue Star's forward order book as on Jun. 30 increased over 13% on year to around INR 78 billion. Thursday, its shares closed at INR 1,571.00 on the National Stock Exchange, down 5.7% from Wednesday.  End

 

Edited by Himanshi Gupta 

 

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