Blue Star Limited (BLUESTARCO)
₹1,567.60 -1.53% last close, 16 Oct
Q2 FY27 results
📅 Next results: 29 Oct 2026 (board meeting)Blue Star Limited's board meets on 29 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Blue Star's revenue was ₹3,378 Cr (+13.3% year on year, -17.0% on the previous quarter), and net profit ₹103 Cr (-15.3% year on year); the operating margin was 5.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,378 | +13.3% | -17.0% |
| Operating profit | ₹175 | -12.1% | -46.3% |
| Net profit | ₹103 | -15.3% | -54.8% |
| EPS (₹) | 4.99 | -15.1% | -54.8% |
| Operating margin | 5.2% | — | — |
BLUESTARCO delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 61.47% of the BLUESTARCO shares traded on NSE were taken to delivery, against the stock's own 20-session average of 41.89%. The price fell 1.53% on that unusually high delivery, the pattern the delivery dashboard labels distribution. Volume was 0.4 times its average, well below normal. In BLUESTARCO futures, open interest fell 1.47% while the futures price fell 0.92%: long unwinding (longs closing out).
Delivery in the last 5 sessions: 29.7% · 41.2% · 40.3% · 56.8% · 61.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Blue Star Limited announced the results of its postal ballot regarding the appointment of Mr. Nikhilesh Panchal as an Independent Director for a 5-year term from August 14, 2026 to August 13, 2031. The special resolution passed with an overall 81.78% majority across 16,48,06,388 votes polled. Notable institutional resistance was observed, with 37.50% of voting public institutions (3,00,17,705 votes) opposing the resolution, while 100% of promoter votes supported it.
- Resolution to appoint Mr. Nikhilesh Panchal as Independent Director passed with 81.78% total votes in favor
- Public institutions cast 3,00,17,705 votes (37.50%) against the resolution versus 5,00,31,701 votes (62.50%) in favor
- 100% of promoter group votes (7,50,49,043 votes) were cast in favor
- Total votes polled stood at 16,48,06,388 out of 20,56,14,788 shares, representing an 80.15% turnout
Blue Star Limited announced that its wholly owned subsidiary, Blue Star International FZCO, has approved the voluntary strike-off of its Uganda step-down subsidiary, Blue Star Air Conditioning & Refrigeration (U) Limited. The entity was incorporated on June 27, 2023, but never commenced business operations and has zero revenue. As of March 31, 2026, the unit had a negative net worth of AED 5,31,000 (approximately Rs 1.35 crore), representing less than 0.05% of Blue Star's consolidated net worth of Rs 3,060 crore. The strike-off process is expected to be completed on or before March 31, 2027.
- Voluntary strike-off approved for wholly owned step-down subsidiary Blue Star Air Conditioning & Refrigeration (U) Limited
- Entity never commenced business operations since incorporation on June 27, 2023, contributing zero revenue
- Reported a negative net worth of AED 5,31,000 (approx. Rs 1.35 crore) as of March 31, 2026
- Strike-off expected to be completed on or before March 31, 2027, subject to local Ugandan approvals
Blue Star Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by MUFG Intime India Private Limited (formerly Link Intime India Private Limited), the company's Registrar and Share Transfer Agent. It confirms that securities received for dematerialisation were processed, confirmed, and mutilated within prescribed timelines. This is a recurring administrative filing with no financial or operational impact.
- Compliance certificate pertains to the quarter ended September 30, 2026
- Issued under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Certificate dated October 3, 2026 and filed with exchanges on October 12, 2026
- RTA MUFG Intime India Private Limited confirmed dematerialisation verification within prescribed timelines
Blue Star Limited has disclosed its schedule for upcoming institutional investor interactions pursuant to Regulation 30. The company will participate in person at the Anand Rathi annual flagship conference in Mumbai on September 22, 2026, from 10:00 am to 12:00 noon. Additionally, management is scheduled to attend the J.P. Morgan India Consumption forum in Gurugram on September 24, 2026, from 10:00 am to 11:00 am. These meetings involve group interactions with analysts and institutional investors.
- In-person group meeting scheduled at Anand Rathi conference on September 22, 2026 (10:00 am to 12:00 noon)
- In-person group interaction at J.P. Morgan India Consumption forum on September 24, 2026 (10:00 am to 11:00 am)
- Locations fixed for Mumbai and Gurugram respectively
Blue Star Limited has issued a Postal Ballot Notice seeking shareholder approval via special resolution for the appointment of Mr. Nikhilesh Panchal as an Independent Director. The proposed tenure spans five consecutive years from August 14, 2026, to August 13, 2031. Remote e-voting is scheduled from September 17, 2026, to October 16, 2026, with the cut-off date fixed as September 11, 2026. Results of the postal ballot will be announced on or before October 18, 2026.
- Appointment of Mr. Nikhilesh Panchal as Independent Director for a 5-year term (August 14, 2026 to August 13, 2031)
- Remote e-voting begins on September 17, 2026 (09:00 IST) and ends on October 16, 2026 (17:00 IST)
- Cut-off date for eligibility to vote set as Friday, September 11, 2026
- Results of the e-voting to be declared on or before Sunday, October 18, 2026
W.J. Towell & Co LLC (WJT) has filed an appeal before the Dubai Court of Appeal seeking the annulment of an ICC arbitration award that was previously decided in favour of Blue Star Limited. In July 2026, the arbitrator had fully dismissed WJT's revised claim of OMR 2,11,80,748 (approximately ₹461.74 crore). The total disputed claim amount represents roughly 3.7% of Blue Star's TTM revenue of ₹12,520 crore and is slightly larger than its TTM net profit of ₹443 crore. Blue Star maintains that the annulment grounds are baseless and notes that annulment proceedings do not reconsider the merits of the case.
- WJT filed for annulment of the ICC arbitration award in the Dubai Court of Appeal on September 14, 2026.
- The dismissed arbitration claim stood at OMR 2,11,80,748 (approx. ₹461.74 crore), revised from an initial OMR 103,18,000 (approx. ₹223.60 crore).
- Disputed claim amount of ₹461.74 crore equals ~104% of Blue Star's TTM PAT of ₹443 crore.
- Arbitrator had fully dismissed WJT's claims on July 23, 2026, while reserving an award on interest and costs.
Blue Star Limited has disclosed the schedule for upcoming in-person group meetings with institutional investors and analysts. The company is scheduled to attend Axis Capital's Consumer & Tech conference in Mumbai on September 10, 2026, from 10:00 am to 12:00 noon. Additionally, it will participate in the Jefferies India Forum 2026 in Gurugram on September 16, 2026, from 10:00 am to 1:00 pm. This is a standard regulatory intimation pursuant to SEBI Listing Regulations.
- In-person group meeting scheduled at Axis Capital's Consumer & Tech conference on September 10, 2026 (10:00 am to 12:00 noon) in Mumbai
- In-person group interaction scheduled at Jefferies India Forum 2026 on September 16, 2026 (10:00 am to 1:00 pm) in Gurugram
- Intimation submitted under Regulation 30 read with Schedule III of SEBI Listing Regulations
Blue Star has completed the sale and transfer of its subsidiary's MedTech business to Cyrix Healthcare effective September 1, 2026, on a slump sale basis. The total consideration is up to Rs 40 crore, payable in tranches with the final payment due by March 31, 2027. The divested unit generated Rs 42.13 crore in turnover in FY26, representing approximately 0.33% of Blue Star's consolidated income from operations. Net worth of the division stood at Rs 7.11 crore (0.21% of consolidated net worth).
- Sale consideration agreed at up to Rs 40.00 crore payable in tranches through March 31, 2027
- MedTech division contributed Rs 42.13 crore (0.33%) to FY26 consolidated turnover
- Division net worth stood at Rs 7.11 crore as on March 31, 2026 (0.21% of consolidated net worth)
- Transfer of business became effective on September 1, 2026
Blue Star Limited's wholly owned subsidiary, Blue Star Engineering & Electronics Limited, has executed a Business Transfer Agreement to sell its MedTech division to Cyrix Healthcare for up to ₹40 crore. The division contributed ₹42.13 crore in revenue (0.33% of consolidated revenue) and ₹7.11 crore in net worth (0.21% of consolidated net worth) during FY26. The transaction is being undertaken to sharpen focus on core strategic priorities and is expected to complete by March 31, 2027.
- Slump sale consideration of up to ₹40 crore from Cyrix Healthcare Private Limited
- MedTech division FY26 turnover was ₹42.13 crore (~0.33% of consolidated income)
- Divisional net worth was ₹7.11 crore (~0.21% of consolidated net worth) as of March 31, 2026
- Target completion date for the slump sale is March 31, 2027, subject to closing conditions
Blue Star reported a challenging Q1 FY27 where Segment II (Room AC) EBIT margins contracted sharply to 2.9% from 5.8% YoY, primarily due to an inability to pass on 13% in input cost hikes. While overall revenue grew 13%, the company faced headwinds from a late summer and high trade inventory, resulting in only 5% of costs being passed to consumers. Conversely, the B2B segment remains robust with a record carried-forward order book of Rs 7,764 Cr, including Rs 1,500 Cr in new data center MEP orders. Management expects a recovery in the second half, targeting a full-year Segment II operating margin of 6.5%.
- Segment II EBIT margins fell 300 basis points YoY to 2.9% in Q1 FY27.
- Total carried forward order book reached a record Rs 7,764 Cr, representing ~64% of TTM revenue.
- Management failed to pass on 8% of the targeted 13% input cost increase to consumers during the quarter.
- Data center MEP projects contributed Rs 1,500 Cr in order inflows, with a target of Rs 4,000 Cr revenue by FY29.
- Net cash position improved significantly to Rs 900 Cr from Rs 371 Cr in the previous year.
Blue Star Limited has formally notified the exchanges regarding a direct communication sent to its shareholders on August 7, 2026. This communication highlights the company's financial performance for the first quarter ended June 30, 2026, which was approved by the Board on August 6, 2026. The filing provides links to the standalone and consolidated results, a detailed press release, and an investor presentation. This is a procedural dissemination of information following the quarterly earnings announcement.
- Board of Directors approved Q1 FY27 financial results on August 6, 2026
- Shareholder communication dispatched via email on August 7, 2026
- Reporting period covers the three months ended June 30, 2026
- Company maintains a TTM revenue base of Rs 12,124 Cr as per latest annual data
Blue Star Limited has released the audio recording of its Investors' Conference Call for the first quarter ended June 30, 2026. This filing is a procedural requirement under SEBI Listing Regulations following the company's earnings announcement. The recording provides management's detailed commentary on the financial performance for a period where the company has a TTM revenue of ₹12,124 crore. Investors can access the recording via the company's website to understand the business outlook and operational updates.
- Audio recording for the quarter ended June 30, 2026, is now publicly available via a web link.
- The filing follows the initial intimation of the earnings call dated July 30, 2026.
- Company reported TTM revenue of ₹12,124 crore and a PAT of ₹462 crore as of the latest cycle.
- Management previously noted a Room AC market share increase to 14% in FY25 from 10% in FY16.
Blue Star Limited shareholders have approved all resolutions at the 78th Annual General Meeting held on August 6, 2026. Key approvals include a final dividend of ₹8.5 per equity share for FY26 and the adoption of audited financial statements. Institutional participation was significant, with 93.5% of institutional shares polled. While all resolutions passed with a requisite majority, the re-appointment of Director Rajiv R Lulla saw a minor institutional dissent of 10.4%.
- Final dividend of ₹8.5 per equity share (425% of face value) approved for FY26
- Total of 1,21,503 shareholders were on record as of the July 17, 2026 cutoff date
- Resolution for Director Rajiv R Lulla's re-appointment passed with 94.76% votes in favour
- Institutional voting turnout was high at 93.52% of the total institutional holding
- Approval of Cost Auditors' remuneration for FY27 passed with 99.99% majority
Blue Star reported a 13.3% YoY revenue growth to ₹3,378 Cr for Q1 FY27, supported by strong demand in data centers and Room ACs. However, profitability was significantly impacted, with Profit Before Tax (PBT) falling 24% to ₹126 Cr compared to ₹165 Cr in Q1 FY26. EBITDA margins contracted from 6.7% to 5.2% due to rising input costs and the depreciation of the Indian Rupee. While the Electro-Mechanical segment saw strong order bookings, the MedTech business continues to face regulatory headwinds.
- Revenue for Q1 FY27 increased by 13.3% YoY to ₹3,378 Cr, representing ~28% of TTM revenue.
- Profit Before Tax (before exceptional items) declined by 24% to ₹126 Cr from ₹165 Cr in the previous year.
- EBITDA margins contracted by 150 basis points, falling to 5.2% from 6.7% in Q1 FY26.
- Earnings Per Share (EPS) for the quarter dropped to ₹4.99 from ₹5.88 in Q1 FY26.
- MedTech business experienced a slowdown due to continued lack of clarity in the regulatory policy framework.
Blue Star reported a 13.3% YoY revenue growth to ₹3,377.92 cr for Q1FY27, but net profit declined by 15.1% to ₹102.53 cr. The Unitary Products (RAC) segment saw margins collapse from 5.8% to 2.9% due to inventory liquidation and high commodity costs. A bright spot is the carried-forward order book, which grew 13.5% YoY to ₹7,764.38 cr, driven by strong demand from data centers. The company also significantly improved its net cash position to ₹900.25 cr through efficient working capital management.
- Revenue from operations grew 13.3% YoY to ₹3,377.92 cr in Q1FY27.
- Net profit declined 15.1% to ₹102.53 cr compared to ₹120.82 cr in Q1FY26.
- Unitary Products segment margins dropped to 2.9% from 5.8% in the previous year.
- Total carried-forward order book increased to ₹7,764.38 cr, representing ~64% of TTM revenue.
- Net cash position improved significantly to ₹900.25 cr from ₹370.92 cr YoY.
Financial Performance
Revenue Growth by Segment
In Q2 FY26, Segment-I (Electro-Mechanical Projects) saw margin improvement to 8.8% from 8.3% YoY. Segment-II (Unitary Products) revenue de-grew 9.5% to INR 694 Cr from INR 767 Cr. Segment-III (Professional Electronics) revenue de-grew 20.1% to INR 64 Cr from INR 81 Cr.
Geographic Revenue Split
Primarily domestic (India) with significant presence in Tier 2 and Tier 3 markets. International business is scaling in the US and Europe, with trial marketing completed and supplies scaling in Q1 and Q2 FY26.
Profitability Margins
Consolidated PAT for FY25 was INR 591.28 Cr, up 42.7% from INR 414.31 Cr in FY24. Net profit margin improved as operating leverage and cost management programs took effect, with FY25 PAT margin at approximately 4.9%.
EBITDA Margin
FY25 EBITDA was INR 875.92 Cr (7.27% margin), representing a 31.7% increase from INR 664.94 Cr in FY24. The improvement is driven by a better product mix and cost-efficiency programs.
Capital Expenditure
Not explicitly disclosed as a forward-looking absolute number, but the company is investing in manufacturing facilities (ISO 45001 certified) and digitalization to support a 23.7% growth in total income recorded in FY25.
Credit Rating & Borrowing
CRISIL A1+ and CARE AA+; Stable. Fund-based bank limits of INR 665 Cr were utilized at below 10% on average, indicating very low reliance on high-cost short-term debt.
Operational Drivers
Raw Materials
Copper, steel, and aluminum (implied for AC/refrigeration) and crude oil derivatives (plastics/refrigerants) which represent approximately 65-70% of total manufacturing costs.
Import Sources
Sourced from domestic markets and international suppliers; specific countries include the US and Europe for specialized components and MedTech solutions.
Capacity Expansion
Operating 4 manufacturing facilities with ISO 45001 certification. Expansion is focused on localized distribution and service support to deepen penetration in Tier 2 and Tier 3 markets.
Raw Material Costs
Raw material costs are sensitive to global price volatility in crude oil and metal commodities. The company uses a cost management program to mitigate the impact of price fluctuations on the 7-8% EBIT margins.
Manufacturing Efficiency
Focus on operating leverage and a dedicated cost management program which helped improve EBIT margins in the EMP segment to 8.2% and UP segment to 8.4% in FY25.
Logistics & Distribution
Widespread network of over 4,000 channel partners and 10,000 outlets across India to support the 14% market share in the RAC business.
Strategic Growth
Expected Growth Rate
20-25%
Growth Strategy
Achieved through deepening Tier 2/3 market penetration, scaling the US and Europe export business following successful product trials, and maintaining leadership in the commercial refrigeration and data center cooling segments.
Products & Services
Room Air Conditioners (RAC), Commercial Air Conditioning systems (Chillers, VRF, Packaged AC), Commercial Refrigeration, and MedTech solutions.
Brand Portfolio
Blue Star
New Products/Services
MedTech solutions and specialized cooling for data centers; MedTech currently faces de-growth of 20.1% due to pending regulatory policy finalization.
Market Expansion
Aggressive expansion into the US and Europe markets; US business is expected to accelerate further once the India-US trade deal is concluded.
Market Share & Ranking
Increased Room AC market share to 14% in FY25 from 10% in FY16. Largest player in the domestic commercial refrigeration business.
Strategic Alliances
Joint Ventures include Blue Star Oman Electro-Mechanical Co. LLC and Blue Star M&E Engineering Sdn Bhd (Malaysia).
External Factors
Industry Trends
The industry is shifting toward higher energy efficiency (BEE norms) and eco-friendly refrigerants. Blue Star is positioning itself by investing in R&D for US/Europe compliant products and digital customer experience tools.
Competitive Landscape
Facing increased competition in the cooling and refrigeration space; competing on product range, localized service, and 'way of working' to maintain a 14% RAC market share.
Competitive Moat
Brand equity and a massive distribution network (10,000+ outlets) create a high barrier to entry. Leadership in the EMP segment (7-8% margins) provides stable cash flow to fund consumer segment growth.
Macro Economic Sensitivity
Highly sensitive to monsoon patterns and summer temperatures; Q2 FY26 revenue de-grew as industry volumes fell 17% due to heavy rains.
Consumer Behavior
Shift toward deferred purchasing in anticipation of GST changes and sensitivity to energy efficiency ratings.
Geopolitical Risks
Geopolitical tensions and the use of tariff/non-tariff barriers are identified as significant concerns for the international business segment.
Regulatory & Governance
Industry Regulations
BEE (Bureau of Energy Efficiency) rating changes effective December 2025; MedTech business is currently constrained by pending regulatory policy frameworks.
Environmental Compliance
ISO 45001 certifications for manufacturing; focus on eco-friendly refrigerants and disposal systems to meet evolving environmental regulations.
Taxation Policy Impact
Impacted by GST rate changes; a reduction announced in August 2025 (effective Sept 22) led to deferred consumer demand in Q2 FY26.
Legal Contingencies
Uncertainties regarding the business model of the MedTech solutions business pending finalization of regulatory policy; specific case values not disclosed.
Risk Analysis
Key Uncertainties
Weather-related demand volatility (monsoon impact) and regulatory shifts in energy labeling (BEE) which can impact margins by forcing inventory liquidation.
Geographic Concentration Risk
Heavy reliance on the Indian market, though diversifying through subsidiaries in Qatar, Oman, Malaysia, and North America.
Third Party Dependencies
Reliance on 4,000 channel partners for secondary sales; high channel inventory levels pose a risk to primary sales if secondary offtake is slow.
Technology Obsolescence Risk
Risk of changing technology in refrigerants and energy efficiency; mitigated by R&D for global markets (US/Europe).
Credit & Counterparty Risk
Strong liquidity with INR 843 Cr in cash and low bank limit utilization (<10%) suggests high quality of receivables and low credit risk.
