The year began on a softer note owing to unseasonal rains across the country resulting in a weak summer, adversely impacting the Room Air Conditioners business of the Company. However, the B2B businesses continued to perform well resulting in an overall modest growth for the quarter. The Company continues to maintain a robust order book scheduled for execution in the upcoming quarters.

Consolidated Financial Performance for Q1FY26

  • The Company’s Revenue from Operations grew by 4.1% to Rs 2,982.25 crores for the quarter ended June 30, 2025, as compared to Rs 2,865.37 crores during the same period in the previous year.
  • The Operating Profit (EBITDA excluding Other Income) for the quarter was Rs 199.99 crores (6.7% of Revenue) compared to Rs 237.83 crores (8.3% of Revenue) in Q1FY25.
  • Profit Before Tax (before exceptional items) declined by 27.8% to Rs 163.23 crores in Q1FY26 compared to Rs 226.02 crores in Q1FY25.
  • Net Profit for the quarter was Rs 120.82 crores as compared to Rs 168.76 crores reported in the same period of the previous year.
  • Other Income, including treasury income from treasury investments, for Q1FY26 was Rs 16.07 crores compared to Rs 23.77 crores in Q1FY25.
  • The quarter ended with a net cash position of Rs 370.92 crores as on June 30, 2025, as compared to a net cash position of Rs 1042.87 crores as of June 30, 2024. Finance

Cost for the quarter increased to Rs 10.07 crores from Rs 7.64 crores in Q1FY25.

  • Tax expense for the quarter was Rs 42.41 crores as compared to Rs 57.26 crores in Q1FY25.
  • Earnings per share (not annualised) for Q1FY26 (Face value of Rs 2.00) was Rs 5.88 compared to Rs 8.21 in Q1FY25.
  • Carried Forward Order Book as on June 30, 2025, grew by 12.5% to Rs 6843.04 crores as compared to Rs 6084.69 crores as on June 30, 2024.

Consolidated Segment Performance for Q1FY26

  • Revenue of Segment 1, comprising Electro-Mechanical Projects, Commercial Air Conditioning Systems, Service and International Business, grew by 35.9% to Rs 1412.46 crores in Q1FY26, compared to Rs 1038.99 crores in Q1FY25. The Segment result for Q1FY26 stood at Rs 111.62 crores (7.9% of Revenue) compared to Rs 103.03 crores (9.9% of Revenue) in Q1FY25. The Company witnessed strong order bookings, on the back of continued demand from factories, data centres, and healthcare sectors, indicating sustained interest and a healthy pipeline for the upcoming quarters. Inflow of enquiries and tenders in the railway electrification and metro railway sectors remained subdued and we continue to maintain a selective approach to infrastructure projects. The Commercial Air Conditioning business delivered robust growth, aligned with overall market trends. Key product categories, including ducted systems, VRF and chillers, registered healthy growth during the quarter, driven by demand from the manufacturing and education sectors.
  • Unitary Products Segment, comprising Room Air Conditioners and Commercial Refrigeration, recorded a revenue decline of 13.3% to Rs 1499.37 crores in Q1FY26, compared to Rs 1729.52 crores in Q1FY25. Segment result stood at Rs 87.47 crores (5.8% of Revenue) in Q1FY26 as compared to Rs 158.03 crores (9.1% of Revenue) in Q1FY25. The Room Air Conditioners business experienced unexpected headwinds due to the early onset of monsoon and an overall mild summer, resulting in subdued demand. However, the Company increased its market share marginally, supported by a comprehensive product portfolio and continued investments in distribution expansion. A stronger demand revival is anticipated during the festive season, and the

Company remains optimistic about the prospects of this business. The Commercial Refrigeration business, on the other hand, delivered strong growth during the quarter, driven by rising demand from the processed food and pharmaceutical sectors, reflecting a positive turnaround in key end-user industries. The business faced regulatory headwinds in the corresponding quarter last year, which are now fully resolved and Q1FY26 saw robust demand growth.

  • Revenue of the Professional Electronics and Industrial Systems Segment, declined by 27.3% to Rs 70.42 crores in Q1FY26, compared to Rs 96.86 crores in Q1FY25. The Segment result stood at Rs 7.62 crores (10.8% of Revenue) in Q1FY26, compared with Rs 9.60 crores (9.9% of Revenue) in Q1FY25. The Segment faced challenges during the quarter, primarily in the Med Tech and Data Security businesses. With regulatory clarity on import of pre-owned medical devices still awaited, the Med Tech business registered a decline in Q1FY26. However, the Industrial Solutions business gained steady momentum, driven by growth in the manufacturing and testing sectors.

Outlook

Vir S. Advani, Chairman & Managing Director, Blue Star Limited adds, “The first quarter of FY26 was impacted due to unseasonal rains during the summer season, resulting in a decline of Room Air Conditioners sales. We anticipate the demand to revive during the upcoming festive season. Further, our well-diversified portfolio of B2B products and solutions comprising, Electro-Mechanical Projects, Commercial Air Conditioning and Commercial Refrigeration, should help us partly offset the shortfall during the rest of the financial year. Aligned with our long-term vision for growth and innovation, we are committed to strategic investments in manufacturing, R&D, and digitalisation, while ensuring sustainable value creation for our stakeholders.”