Blue Star Q1FY27 Revenue Rises 13.3% to ₹3,377.92 Cr; Margins Hit by Input Costs
Blue Star's Q1FY27 consolidated revenue grew 13.3% to ₹3,377.92 crores from ₹2,982.25 crores in Q1FY26. However, Net Profit declined to ₹102.51 crores from ₹120.82 crores due to rising input costs impacting margins. The order book increased by 13.5% to ₹7,764.38 crores. The company maintained a net cash position of ₹900.25 crores.
The revenue growth is a positive indicator, but the decline in profitability and margins, coupled with a cautious outlook due to geopolitical factors, suggests a moderate impact on the company's short-to-medium term performance.
The company reported revenue growth, which is positive. However, this was offset by a decline in profit and margins due to rising input costs and other headwinds, leading to a neutral overall sentiment.
Blue Star Limited announced its consolidated financial results for the first quarter of FY27, ending June 30, 2026. The company reported a robust revenue growth of 13.3%, reaching ₹3,377.92 crores, up from ₹2,982.25 crores in Q1FY26. This growth was achieved despite challenges including rising commodity prices, a delayed summer season, and inventory issues in the Room AC segment. A significant positive was the strong inflow of orders for Data Centre MEP projects.
The Operating Profit (EBITDA excluding Other Income) for the quarter stood at ₹174.95 crores, with an EBITDA margin of 5.2%, a decrease from ₹199.99 crores (6.7% margin) in Q1FY26. Profit Before Tax (before exceptional items) declined by 23.7% to ₹125.62 crores, and Net Profit decreased to ₹102.51 crores compared to ₹120.82 crores in the same period last year. Other Income, primarily from treasury investments, increased to ₹20.76 crores from ₹16.07 crores.
The company maintained a strong net cash position of ₹900.25 crores as of June 30, 2026, an increase from ₹370.92 crores as of June 30, 2025. Earnings per share (EPS) for the quarter was ₹4.99, down from ₹5.88 in Q1FY26. The carried-forward order book grew by 13.5% to ₹7,764.38 crores as of June 30, 2026, compared to ₹6,843.04 crores in the previous year.
In terms of segment performance, the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment revenue grew by 15.1% to ₹1,625.05 crores, driven by data centre projects, though segment results saw a slight decrease. The Unitary Products Segment, including Room Air Conditioners and Commercial Refrigeration, grew by 12.7% to ₹1,689.31 crores, but margins were impacted by inventory liquidation and subdued market prices. The Professional Electronics and Industrial Systems business saw a revenue decline of 9.7% to ₹63.56 crores, primarily due to challenges in the MedTech Solutions business.
Vir S. Advani, Chairman & Managing Director, commented that the company delivered modest revenue growth despite headwinds and expects strong order inflow from data centres to support future growth. He noted the volatility in commodity prices and exchange rates, emphasizing the company's focus on balancing volume growth with margins, research and development, cost control, and maintaining a strong balance sheet. He added a cautious outlook for the remainder of the financial year due to ongoing uncertainties from the West Asia conflict.
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