Blue Star Q2 FY27 Results: Revenue Rises 21% To ₹2,930.95 Crore, But Operating Margin Comes Under Pressure

Blue Star’s Q2 revenue from operations rose 21% year-on-year (YoY) to ₹2,930.95 crore from ₹2,422.37 crore. Operating profit, defined as earnings before interest, tax, depreciation and amortisation (EBITDA) excluding other income, increased 10.5% to ₹202.58 crore. The operating margin consequently declined to 6.9% from 7.6% of revenue.

Net profit grew 25.4% to ₹123.91 crore from ₹98.78 crore. The quarter included an exceptional gain of ₹23.02 crore from the sale of the MedTech business. Profit before tax, excluding exceptional items and the share of profit or loss from joint ventures, edged up to ₹133.61 crore from ₹133.16 crore. Earnings per share increased to ₹6.03 from ₹4.80.

The Blue Star share price closed at ₹1,673 on 29 October 2026, up 4.69% on the National Stock Exchange (NSE).

Blue Star Q2 Results: Segment Performance

The Electro-Mechanical Projects, Commercial Air Conditioning Systems, Service and International Business segment recorded 16.3% revenue growth to ₹1,935.99 crore. However, its segment result fell to ₹133.15 crore from ₹147.14 crore. Data centres drove project order inflows, although execution delays subdued billing growth.

The Unitary Products segment, comprising room ACs and commercial refrigeration, grew revenue 29.4% to ₹897.66 crore. Its segment result declined to ₹20.74 crore from ₹42.72 crore as material-cost increases squeezed margins. Blue Star is rationalising its product portfolio with differentiated, cost-optimised models.

Professional Electronics and Industrial Systems revenue rose 51.2% to ₹97.30 crore, while its segment result increased to ₹23.10 crore from ₹6.17 crore. The MedTech business was sold for ₹35.65 crore on August 31, 2026. The segment also benefited from a write-back of warranty provisions after the sale, alongside demand for industrial and data-security solutions.

What Did Management Say?

Vir S Advani, Chairman and Managing Director, said room AC demand remained strong through the festive season. At the same time, a healthy pipeline of data-centre mechanical, electrical and plumbing (MEP) projects could support future order inflows. He also pointed to improving demand in commercial air conditioning and refrigeration.

A deficient monsoon and higher interest rates could weigh on near-term demand, while a US trade deal and resolution of the West Asia crisis could support growth. Blue Star aims to sustain revenue momentum in the second half of FY27 by using calibrated price increases, product-cost optimisation and operational efficiencies to improve margins.

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