Blue Star Limited has reported a modest growth in its financial performance for the second quarter of the fiscal year 2026, according to a press release issued by the company. The company, which is a key player in the air conditioning and commercial refrigeration industry, faced several market challenges during this period, including a seasonal slowdown in the Room ACs segment and deferred demand due to recent GST rate changes.
During the quarter ended September 30, 2025, Blue Star’s revenue from operations increased by 6.4% to ₹2,422.37 crores, up from ₹2,275.96 crores in the same period last year.
The company attributed this growth to steady execution in its Electro-Mechanical Projects business, despite headwinds in the Room ACs segment. The extended monsoon and lower temperatures adversely impacted secondary sales and channel offtake, while the GST rate reduction, effective from September 22, 2025, led to deferred demand in the Room ACs and Commercial Air Conditioning segments.
The company’s operating profit, excluding other income, rose by 22.8% to ₹183.41 crores, representing 7.6% of revenue, compared to ₹149.31 crores or 6.6% of revenue in the previous year’s second quarter. However, other income, including treasury investments, decreased to ₹10.01 crores from ₹18.51 crores in Q2FY25. Finance costs also saw a significant increase to ₹16.92 crores, up from ₹6.48 crores, primarily due to higher borrowing levels.
The net profit for the quarter grew by 2.8% to ₹98.78 crores, up from ₹96.06 crores in Q2FY25. Earnings per share for the quarter stood at ₹4.80, compared to ₹4.67 in the same period last year.
The company’s carried forward order book as of September 30, 2025, increased by 7.9% to ₹7,120.44 crores, compared to ₹6,598.20 crores a year earlier. Capital employed also rose significantly to ₹3,530.88 crores from ₹2,550.28 crores. However, the quarter ended with net borrowings of ₹417.06 crores, a shift from a net cash position of ₹185.26 crores as of September 30, 2024.
Segment-wise performance
In terms of segment performance, the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment reported a revenue growth of 16.5% to ₹1,664.21 crores.
The company maintained its leadership in Ducted Systems and Scroll Chillers and ranked among the top three in VRF and Screw Chillers.
Conversely, the Unitary Products Segment, which includes Room Air Conditioners and Commercial Refrigeration, experienced a revenue decline of 9.5% to ₹693.81 crores. This segment’s result fell to ₹42.72 crores, or 6.2% of revenue, from ₹53.92 crores, or 7.0% of revenue, in Q2FY25. The decline was attributed to unfavourable weather conditions and the mid-quarter GST rate rationalisation announcement.
The Professional Electronics and Industrial Systems Segment also saw a revenue decline of 20.1% to ₹64.35 crores. The decline was mainly due to uncertainties in the MedTech Solutions Business, pending regulatory policy framework finalization.
Vir S. Advani, Chairman & Managing Director of Blue Star Limited, expressed optimism about the company’s long-term growth trajectory, despite temporary demand impacts in some businesses. “While demand in some businesses was temporarily impacted, the Company’s diversified portfolio and strong
execution capabilities continue to reinforce its long-term growth trajectory. As far as the Room AC business is concerned, the benefit of GST rate rationalisation is likely to accelerate consumer demand and drive long-term market expansion. Also, with the energy label change scheduled for implementation on January 1, 2026, we expect a rise in demand during the Christmas and New Year period,” said Advani.
Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.
