Blue Star Ltd, a leader in air conditioning and refrigeration solutions, will allocate Rs 400 crore in FY’26 to ramp up its manufacturing capacity in several key segments, including room air conditioners, commercial refrigeration, and commercial air conditioning, according to a senior company executive. A significant portion of this investment, Rs 200 crore, will be directed towards the third phase expansion of the Sri City plant, which will boost the room air conditioner capacity by 12 lakh units, increasing it from 8.5 lakh units. Additionally, Rs 53 crore will be invested in its commercial freezers unit near Mumbai, and Rs 150 crore will go into expanding the commercial air conditioning facility in Himachal Pradesh.
“We are targeting a 20% growth in FY’26, with an expected 25% growth in the current fiscal year, driven by strong performance in the room air conditioner segment. We expect 30% growth in room air conditioners during Q1 FY’26, following an exceptional 50% growth last year,” said B Thiagarajan, Managing Director of Blue Star Ltd.
The company attributes the stellar performance last year to an extraordinary surge in demand for room air conditioners, driven by intense heatwaves and a prolonged summer season. Blue Star is confident of expanding its market share in key areas by focusing on innovation, fast delivery, and tapping into the growth of sectors like quick commerce and quick-service restaurants (QSRs).
In the room air conditioner market, Blue Star aims to increase its market share from 13.75% to 13.8% by the end of this fiscal year, with an ambitious target of 14.25% for FY’26. In the commercial refrigeration space, the company plans to boost its market share from 30% to 33%. To drive this growth, Blue Star will introduce a wide range of commercial refrigeration products in Kolkata, tailored to industries such as horticulture, dairy, ice cream, poultry, processed foods, HoReCa (Hotels, Restaurants, and Catering), marine, pharmaceutical, and healthcare.
Blue Star’s total addressable market in commercial refrigeration is valued at Rs 5,000 crore, part of a larger Rs 8,000 crore market, excluding ammonia-based cooling systems, which the company does not currently serve. Thiagarajan also mentioned that the company is assessing additional capital expenditure for expanding its manufacturing footprint in the Eastern region, where it has already seen notable growth in both room air conditioners (market share rising from 10% to 13%) and commercial refrigeration (market share growing from 7-8% to 8-10%). In the latest financial results, Blue Star reported a 25.3% rise in revenue, reaching Rs 2,807.36 crore in Q3 FY’25, compared to the same quarter last year.
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.
The company has built a strong reputation for innovation, reliability, and energy-efficient products, making it a preferred brand in the Indian market. Blue Star is also recognized for its after-sales services, with an extensive network of service centers across India. Over the years, the company has expanded its presence internationally, contributing significantly to the global HVAC-R industry while maintaining a focus on sustainability and cutting-edge technology.
