Business Overview

Blue Star is an air conditioning, refrigeration and MEP solution provider with over 80 years of operations in India since 1943. The company maintains approximately 2 million tonnes of air conditioning and refrigeration equipment across residential, commercial, industrial, and infrastructure end-markets. The company has presence in 18+ countries with plans to strengthen presence in USA and Europe, operating 7 manufacturing facilities in India with 4000+ channel partners.

Segment Performance Q1FY27

Segment 1 - Electro-Mechanical Projects and Commercial Air Conditioning Systems

  • Electro-Mechanical Projects: Strong order bookings primarily driven by data centers during the quarter. Rising opportunities in data centers and factories providing confidence of continued growth prospects.
  • Commercial Air Conditioning Systems: Order inflow gained momentum supported by demand from industrial, retail and health care segments.
  • International Business: Expansion in US progressing well despite tariff-related uncertainties. Company continues to pursue more customers in US and Europe.

Segment 2 - Unitary Products

  • Room Air Conditioner: Delivered robust revenue growth, however margin remained under pressure due to rising input costs and depreciation of the Indian Rupee.
  • Commercial Refrigeration: Witnessed degrowth as demand for deep freezers from Ice cream OEMs was muted.

Segment 3 - Professional Equipment and Industrial Solutions

  • Segment revenue declined mainly due to continued challenges in the Med Tech business.
  • Industrial Solutions continue to grow steadily supported by manufacturing and testing demand.
  • Regulatory policy framework for Med-Tech Solutions business remains unclear, consequently the business has slowed down.

Financial Highlights Q1FY27

  • Consolidated Revenue: ₹2,537 crore, representing 11.6% year-on-year growth
  • EBITDA: ₹218 crore
  • Profit After Tax: ₹136 crore

ESG Practices

Environmentally Responsible Operations

  • Focus on energy-efficient and sustainable designs including green refrigerants, invertor compressors and emphasis on reusable packaging
  • IGBC-certified offices/plants (Thane, Wada, Sri City, Dadra)
  • Net Zero Energy Platinum certification for Sakinaka Office
  • GreenCo certification secured for Wada facility, with Sri City certification in progress
  • 6 MWp solar system supplies approximately 15% of energy requirements
  • 1.2 MWp captive solar system under commissioning
  • Use of battery operated forklifts, BLDC/IE motors, natural lighting, HVAC upgrades, and rainwater harvesting
  • E-waste compliance, PCB reuse, and product refurbishment programs for MRI, AC&R equipment

Social Responsibility & Community Impact

  • Board diversity: 16.67% female representation in Board
  • Workforce diversity: 11.66% female representation in permanent employees
  • Active Diversity, Equity & Inclusion policy
  • CSR Policy updated to include environment & sustainability as focus areas
  • Vocational training for 500+ youth and 375 apprentices across India
  • STEM camps and labs benefiting 6,000+ tribal students
  • Support to 2,100+ students across 10 government schools in Himachal
  • 12,000+ students in Palghar screened and provided eyewear
  • 350+ scholars supported under Mohan T Advani Centennial Scholarship
  • Vocational training for 500+ women in rural crafts, tailoring, digital marketing

Governance Excellence

  • Robust compliance framework with Code of Conduct and Whistle Blower Policy
  • Integrated Governance, Risk & Compliance (GRC) policy based on COSO 2017
  • Balanced representation of Executive & Non-Executive Directors on Board
  • Strong internal controls, Enterprise Risk Management, and ethical transparency
  • Integrated vigil mechanism and industry-leading practices in Enterprise Risk Management

Board Composition

  • Chairman Emeriti: Ashok M Advani, Suneel M Advani
  • Chairman & Managing Director: Vir S Advani
  • Managing Director: B Thiagarajan
  • Executive Director: Mohit Sud
  • Non-Executive Directors: Rajiv R Lulla, Dinesh Vaswani, Sunaina Murthy
  • Independent Directors: M S Unnikrishnan, Anil Harish, Anita Ramachandran, Vipin Sondhi

Additional Information

The presentation contains forward-looking statements regarding financial position, business strategy, management plans and objectives for future operations, identified by words such as 'believes,' 'estimates,' 'anticipates,' 'expects,' 'intends,' 'may,' 'will,' 'plans,' 'outlook.' These statements are dependent on assumptions that may be incorrect or imprecise and actual results could differ materially due to various events, risks, uncertainties and other factors.