Blue Star Limited reported a 21% year-on-year increase in consolidated revenue from operations to ₹2,930.95 crore for the quarter ended September 30, 2026, compared with ₹2,422.37 crore in the corresponding quarter of the previous financial year. Operating profit, excluding other income, rose 10.5% to ₹202.58 crore from ₹183.41 crore.
The extended summer season and delayed monsoon supported strong demand for Room Air Conditioners (ACs), contributing to revenue growth. However, profitability across businesses remained under pressure as material costs continued to rise and the company could pass on only part of the increases through price revisions. Operating margin stood at 6.9%, compared with 7.6% in Q2FY26.
Net profit increased 25.4% to ₹123.91 crore from ₹98.78 crore a year earlier. The quarter included an exceptional gain of ₹23.02 crore from the sale of the company’s MedTech business. Profit before tax, excluding exceptional items and share of profit or loss from joint ventures, was ₹133.61 crore against ₹133.16 crore in the year-ago quarter. Earnings per share stood at ₹6.03, compared with ₹4.80.
Other income increased to ₹15.79 crore from ₹10.01 crore, supported by higher surplus funds, while finance costs remained broadly stable at ₹16.85 crore. The carried-forward order book stood at ₹7,229.22 crore as of September 30, 2026. Capital employed declined to ₹3,200.36 crore from ₹3,530.88 crore a year earlier, reflecting normalised working capital levels. The company ended the quarter with net cash of ₹289.43 crore, compared with net borrowings of ₹417.06 crore at the end of September 2025.
Revenue from the Electro-Mechanical Projects, Commercial Air Conditioning Systems, Service and International Business segment increased 16.3% to ₹1,935.99 crore. Segment results were ₹133.15 crore, compared with ₹147.14 crore in Q2FY26. Data centres drove order inflows in electro-mechanical projects, while factory-related enquiries remained strong. Project execution delays, however, moderated billing growth. Commercial Air Conditioning recorded strong demand from healthcare, education and industrial customers. Blue Star also introduced next-generation variable refrigerant flow (VRF) and ducted systems. Heat pump supplies in the US continued despite supply-chain and logistics challenges.
The Unitary Products segment, comprising Room ACs and Commercial Refrigeration, reported 29.4% revenue growth to ₹897.66 crore. Segment results declined to ₹20.74 crore from ₹42.72 crore, reflecting cost pressures and limited pass-through of higher input prices. The company is rationalising its product portfolio through differentiated, cost-optimised models to improve margins.
Revenue from Professional Electronics and Industrial Systems grew 51.2% to ₹97.30 crore, while segment results increased to ₹23.10 crore from ₹6.17 crore. The sale of the MedTech business was completed on August 31, 2026, for ₹35.65 crore. The write-back of warranty provisions following the divestment also supported profitability. Industrial Solutions benefited from manufacturing and testing demand, while Data Security Solutions maintained steady performance.
For H1FY27, revenue increased 16.7% to ₹6,308.87 crore. Operating profit stood at ₹377.53 crore, compared with ₹383.41 crore in H1FY26, while net profit rose to ₹226.42 crore from ₹219.60 crore. Exceptional gains during the half-year totalled ₹32.19 crore, including ₹23.02 crore from the MedTech sale and ₹9.17 crore from the sale of property.
Vir S Advani, Chairman and Managing Director, Blue Star Limited, said demand for Room ACs remained strong through the festive season and a healthy pipeline of data centre projects was expected to drive order inflows. He also pointed to improving demand in Commercial Air Conditioning and Commercial Refrigeration. While inflation, agricultural income pressures and higher interest rates could affect near-term demand, the company expects to sustain revenue growth in H2FY27, focusing on calibrated price increases, product cost optimisation and operational efficiency to improve profitability.
Blue Star Limited is a provider of air conditioning, commercial refrigeration, electro-mechanical projects, service, professional electronics and industrial solutions. Its businesses serve residential, commercial and industrial customers across India and international markets.
