Blue Star continued its strong growth trajectory in FY25, propelled by robust demand across its key business sectors. Notably, the Room Air Conditioning (AC) segment saw remarkable growth, driven by a particularly hot summer and increased inventory stocking by channel partners to mitigate potential supply chain challenges. The company’s commitment to operational efficiency and market adaptability positioned it to close the year with solid momentum and a fortified standing in the industry.
The financial performance of the company for the fourth quarter of FY25 displayed impressive growth across several key metrics. Revenue from operations surged by 20.8%, reaching Rs 4,018.96 crores for the quarter ending March 31, 2025. This was a significant increase compared to Rs 3,327.77 crores in the same quarter of the previous year. The increase in revenue is reflective of strong demand across multiple segments and efficient business operations. The company’s performance in Q4FY25 highlights its ability to drive growth despite challenges in the broader market.
Operating profit, excluding other income, grew by 15.5% to Rs 279.40 crores for Q4FY25, representing 7.0% of revenue. This is an improvement over Rs 241.90 crores in the same quarter last year, which accounted for 7.3% of revenue. Despite a slight decrease in the operating profit margin, the overall growth in absolute terms was a strong indicator of operational efficiency and cost management. This growth in operating profit was supported by the company’s continued focus on streamlining its operations.
Profit before exceptional items and tax for Q4FY25 saw an increase of 16.2%, reaching Rs 248.82 crores, up from Rs 214.13 crores in the same period last year. This growth in profit before tax reflects the company’s ability to maintain a strong financial performance, despite fluctuations in operational costs and market conditions. The increase in profitability is a testament to the strategic initiatives that have been implemented to optimize the business.
Net profit for the quarter, excluding exceptional items, was Rs 194.00 crores, up from Rs 159.71 crores in Q4FY24. This represents a solid growth of 21.5%, driven by improved operating efficiency and better management of working capital. The increase in net profit is reflective of the company’s ability to generate higher earnings while maintaining a disciplined approach to costs and expenses. The net profit growth underscores the company’s strong fundamentals and robust financial performance.
Other income, which includes treasury income, rose significantly to Rs 23.99 crores in Q4FY25, compared to Rs 12.39 crores in Q4FY24. This increase was largely due to higher cash surplus levels, resulting from effective working capital management. The rise in other income is a positive indicator of the company’s liquidity position and its ability to generate returns on its cash reserves, further bolstering its overall financial performance.
The company’s tax expense for the quarter increased slightly to Rs 54.82 crores, up from Rs 54.42 crores in Q4FY24. The marginal increase in tax expense is reflective of the company’s improved profitability, though the overall impact on net earnings was limited. The company’s tax rate remained stable, and the slight increase in tax expense is consistent with its overall earnings growth.
For the full year, revenue from operations for FY25 reached Rs 11,976.65 crores, marking a 23.6% increase from Rs 9,685.36 crores in FY24. The year-on-year growth in revenue demonstrates the company’s strong performance across various business segments. This growth is a result of both organic expansion and strategic investments that have helped drive higher sales and market penetration.
Operating profit for FY25 also showed impressive growth, rising by 31.8% to Rs 875.92 crores, which represents 7.3% of revenue. This is up from Rs 664.94 crores in FY24, which represented 6.9% of revenue. The increase in operating profit was driven by the company’s focus on cost management, efficiency improvements, and strong demand in key market segments. The higher operating margin also highlights the company’s ability to leverage scale while controlling costs effectively.
Profit before exceptional items and tax for the year grew by 38.6%, reaching Rs 772.42 crores in FY25, compared to Rs 557.16 crores in FY24. This growth in profitability indicates the company’s ability to generate strong earnings while maintaining a solid cost base. The higher profit before tax reflects the company’s strategic initiatives to optimize its business operations and enhance its overall financial health.
Net profit for the year, including exceptional income of Rs 10.37 crores, climbed by 42.7% to Rs 591.28 crores, compared to Rs 414.31 crores in FY24. This remarkable increase in net profit was driven by strong operational performance and increased other income. The exceptional income reflects the company’s ability to capitalize on unique opportunities, contributing to a better-than-expected overall result. The significant rise in net profit underscores the company’s continued growth and profitability.
The company’s other income for FY25 increased to Rs 75.00 crores from Rs 47.42 crores in FY24, reflecting higher cash surplus levels and better returns on its financial assets. This increase further strengthened the company’s overall financial position, enabling it to reinvest in growth opportunities. The company’s net cash balance as of March 31, 2025, stood at Rs 640 crores, compared to Rs 456 crores at the same time last year. This increase in cash reserves demonstrates the company’s ability to generate free cash flow and its strong liquidity position.
Finance costs for FY25 decreased to Rs 48.80 crores, down from Rs 58.08 crores in FY24. The decrease was due to reduced borrowings, which reflects the company’s focus on improving its capital structure and reducing debt. Capital employed as of March 31, 2025, was Rs 2,427.28 crores, up from Rs 2,156.70 crores in FY24, primarily due to increased capital investments. The decrease in finance costs and the increase in capital employed are positive signs of the company’s financial strength and its commitment to long-term growth.
The company’s tax expense for FY25 was Rs 193.65 crores, up from Rs 142.85 crores in FY24. This increase in tax expense was consistent with the company’s higher profitability. The effective tax rate, however, slightly decreased to 24.7% from 25.6% in FY24, reflecting a favorable tax strategy. Earnings per share for FY25 stood at Rs 28.76, up from Rs 20.77 in FY24, demonstrating strong growth in shareholder value. The order book carried forward at the end of FY25 stood at Rs 6,263.36 crores, a 9.9% increase from Rs 5,697.63 crores at the end of FY24, providing a strong foundation for future revenue growth.
The performance of the various business segments was also noteworthy. Revenue from the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment grew by 27.2% to Rs 5,997.99 crores in FY25. The segment profit rose by 43.9%, reflecting strong demand, particularly from factories and data centers. Despite slower growth in commercial real estate and infrastructure, the segment performed well, contributing significantly to the overall revenue growth.
The Unitary Products segment also saw strong performance, with revenue increasing by 22.4% to Rs 5,621.11 crores in FY25. The segment profit grew by 30.8%, driven by a record performance in the Room AC business during Q4FY25. Preemptive stocking by dealers ahead of the summer season played a role in boosting sales. The Commercial Refrigeration segment rebounded as well, supported by growth in sectors such as ice cream, quick-service restaurants, and healthcare.
On the other hand, the Professional Electronics and Industrial Systems segment experienced a decline in both revenue and profitability. Revenue dropped by 7.7% to Rs 348.55 crores, while segment profit fell by 42.3%, mainly due to challenges in the Data Security and MedTech sectors. These challenges impacted both revenue generation and profitability within the segment, highlighting the need for strategic adjustments in these areas.
In conclusion, the company’s consolidated financial performance for FY25 was strong, with notable growth in revenue, operating profit, and net profit. The financial results reflect the effectiveness of the company’s strategies in managing operations, optimizing costs, and growing key business segments. Looking ahead, the company remains well-positioned to continue its growth trajectory, supported by a solid order book, a healthy cash balance, and strong performance across its key sectors.
The Board of Directors has proposed a dividend of Rs 9 per equity share with a face value of Rs 2 for FY25, up from Rs 7 per share in FY24.
Vir S Advani, Chairman & Managing Director, remarks, “We have delivered outstanding results for the third consecutive year, with the Room AC business particularly standing out due to high demand driven by forecasts of a harsh summer. While April saw a slight dip in growth due to milder weather, we expect demand to pick up in May and June 2025. The challenges in the Commercial Refrigeration sector have been overcome, and the growing order book in Electro-Mechanical Projects and Commercial Air Conditioning systems, along with strong demand from manufacturing and data center markets, will drive further growth. However, we remain vigilant about geopolitical tensions, potential supply chain disruptions, and fluctuations in commodity prices.”
Blue Star is one of India’s leading air conditioning and refrigeration companies, known for its high-quality products and solutions in the HVAC-R (heating, ventilation, air conditioning, and refrigeration) sector. Established in 1943, Blue Star offers a wide range of air conditioning systems for residential, commercial, and industrial applications, as well as refrigeration solutions for food storage, pharmaceutical, and industrial use.
