Blue Star Q1FY27 Revenue Up 13.3%, Margins Decline

Date: August 6, 2026

Revenue & Profitability:

Revenue from Operations for Q1FY27 grew 13.3% to ₹3,377.92 crores compared to ₹2,982.25 crores in Q1FY26
Operating Profit (EBITDA excluding Other Income) declined to ₹174.95 crores (EBITDA margin 5.2%) from ₹199.99 crores (EBITDA margin 6.7%) in Q1FY26
Profit Before Tax (before exceptional items) declined by 23.7% to ₹125.62 crores from ₹164.64 crores in Q1FY26
Net Profit declined to ₹102.51 crores from ₹120.82 crores in Q1FY26
Tax expense was ₹32.08 crores compared to ₹42.41 crores in Q1FY26
Earnings per share (not annualized) was ₹4.99 compared to ₹5.88 in Q1FY26

Other Financial Metrics:

Other Income, including treasury investments, was ₹20.76 crores compared to ₹16.07 crores in Q1FY26
Net cash position improved significantly to ₹900.25 crores as of June 30, 2026, from ₹370.92 crores as of June 30, 2025
Carried-forward order book grew by 13.5% to ₹7,764.38 crores as of June 30, 2026, from ₹6,843.04 crores as of June 30, 2025

Electro-Mechanical Projects and Commercial Air Conditioning Systems:

Revenue grew 15.1% to ₹1,625.05 crores in Q1FY27 from ₹1,412.46 crores in Q1FY26
Segment Result stood at ₹110.22 crores (6.8% of Revenue) compared to ₹111.62 crores (7.9% of revenue) in Q1FY26
Strong order bookings driven by data center investments, but sluggish order inflow from commercial offices, factories, and infrastructure due to cost escalations from West Asia crisis
Strong enquiry momentum from data center sector supporting medium-term prospects
Commercial Air Conditioning business reported robust order bookings from industrial, retail, and healthcare sectors

Unitary Products Segment (Room ACs and Commercial Refrigeration):

Revenue grew 12.7% to ₹1,689.31 crores in Q1FY27 from ₹1,499.37 crores in Q1FY26
Segment Result declined to ₹49.69 crores (2.9% of revenue) from ₹87.47 crores (5.8% of revenue) in Q1FY26
Pressure to liquidate inventory pile-up due to delayed summer onset
Market operating prices remained subdued despite cost escalation attempts
Healthy tertiary sales supported by advertising, trade schemes, and consumer finance offers
Commercial Refrigeration business declined due to muted demand for deep freezers from ice cream manufacturers

Professional Electronics and Industrial Systems:

Revenue declined 9.7% to ₹63.56 crores in Q1FY27 from ₹70.42 crores in Q1FY26
Segment Result improved to ₹9.57 crores (15.1% of revenue) from ₹7.62 crores (10.8% of revenue) in Q1FY26
Decline attributed to challenges in MedTech Solutions business
Industrial Solutions business grew steadily with demand from manufacturing and testing sectors

Vir S. Advani, Chairman & Managing Director, stated that the company delivered modest revenue growth despite multiple headwinds including:

Unprecedented escalation in commodity prices
Delayed onset and abrupt end of summer season
Significant inventory pile-up of old Room ACs in trade
The Electro-Mechanical Projects business witnessed strong inflow of Data Centre MEP project orders
Commodity prices and exchange rates remain highly volatile
Company will focus on prudently balancing volume growth and margins
Continued investment in R&D with focus on value analysis, value engineering, and product optimization
Focus on controlling operating costs and maintaining strong balance sheet
Medium-term fundamentals of HVAC&R industry remain strong
Ongoing conflict in West Asia and resulting market uncertainties warrant cautious outlook for remainder of financial year