Blue Star Q1 FY 2026-27 Results: Net Profit Falls 15% To ₹102.5 Crore, Shares Slide 4%
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Blue Star's Q1 FY 2026-27 net profit fell 15% to Rs 102.5 crore, missing street estimates, as EBITDA margin contracted to 5.18% amid cost pressures and weak Room AC demand.
Blue Star Q1 FY 2026-27 Results: Cooling solutions manufacturer Blue Star Ltd reported a 15.3% year-on-year decline in consolidated net profit for the June quarter (Q1 FY27) on Thursday, August 6, while revenue rose 13.3%. The company's revenue and operating performance came in below analysts' expectations.
Consolidated net profit stood at ₹102.5 crore for the quarter, compared with ₹120.96 crore in the corresponding period last year, according to a regulatory filing.
Revenue from operations increased 13.3% year-on-year to ₹3,377.92 crore from ₹2,982 crore a year ago. However, the figure missed the CNBC-TV18 poll estimate of ₹3,547 crore. Total expenses rose 15.5% to ₹3,273 crore during the quarter.
At the operating level, EBITDA declined 12% year-on-year to ₹175 crore, below the CNBC-TV18 poll estimate of ₹247 crore. EBITDA margin contracted to 5.18% from 6.71% a year earlier, against an estimate of 7%.
Blue Star said profitability during the quarter was affected by a sharp rise in commodity prices, higher selling prices, the delayed onset and abrupt end of the summer season, and inventory build-up of older room air-conditioner models in the trade channel.
Business Performance
The Electro-Mechanical Projects and Commercial Air Conditioning Systems business reported revenue of ₹1,625.05 crore, up 15.1% year-on-year, supported by strong order bookings from data centres.
However, order inflows from commercial offices, factories and infrastructure remained weak as cost escalation linked to the conflict in West Asia delayed project finalisations. The company said enquiry levels from the data centre segment remain strong and it is accelerating execution of large infrastructure projects.
The Unitary Products business, which includes room air conditioners and commercial refrigeration, reported revenue of ₹1,689.3 crore, up 12.7% year-on-year.
Blue Star said the delayed onset of summer resulted in higher inventory levels in the distribution channel, affecting primary sales volumes and margins during the quarter. The commercial refrigeration business also reported weaker demand, mainly due to lower orders for deep freezers from ice cream manufacturers. The company expects demand to improve during the festive season.
Management Commentary
Chairman and Managing Director Vir S Advani said the medium-term outlook for the HVAC&R industry remains positive. However, he added that the ongoing conflict in West Asia and the resulting market uncertainty warrant a cautious approach for the remainder of FY27.
Blue Star Share Price
Shares of Blue Star fell after the earnings announcement, declining as much as 4% during Thursday's session. By afternoon trade, the stock was down 5.6% at ₹1,571.80 on the NSE.
The stock has declined around 15% so far in 2026, as investors weighed demand trends and margin pressures in the room air-conditioning business despite the company's double-digit revenue growth.
Also Read - Trent Q1 FY 2026-27 Results: Net Profit Rises 22% To ₹518 Crore, Revenue Up 18%
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Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
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