According to reports from NDTV Profit, Blue Star Managing Director B. Thiagarajan announced that the company will implement at least 8% more price increases through the remainder of the fiscal year. The company has already implemented 5-8% of the planned 13% price increase due to rising costs, with the remainder being unavoidable given the evolving global landscape. Thiagarajan emphasized that five percent more minimum is required to protect margins at last year's level, citing rising input costs from copper, petroleum-linked components such as plastics, and a depreciating rupee. As per NDTV Profit, the company needs to implement total price hikes of about 13% for room air conditioners, having only realized 8% so far.
Blue Star reported record quarterly revenue of approximately ₹4,072 crore and improved its EBITDA margin to 8% in Q4 FY26, up from 7% a year prior. The unitary products segment also saw margin improvement to 10.4%. The company's order book grew 10.5% to ₹6,923 crore, signaling potential growth from sectors like data centers and healthcare. However, the company announced a dividend cut to ₹8.5 per share from ₹9 for FY26, signaling a more cautious approach to capital allocation amid current pressures.
The price increases will be implemented in a two-stage plan. Five percent of the hike will be passed on by end of May and into June, with an additional 3% required before the festive season. As per NDTV Profit, the stock, trading around ₹1,658 in mid-May 2026, has shown mixed performance: up 5.51% year-on-year by some metrics, but down over 24% in the year prior to April 2026. Management noted that only an average price hike of 8-9% has been implemented against a 13% cost increase, with the remaining adjustments driven by rising costs for copper, plastics, and a depreciating rupee.
According to NDTV Profit, summer season primary sales have come in below expectations, partly because dealers had pre-loaded inventory ahead of anticipated energy efficiency rating changes and price increases. With secondary movement now improving, fresh primary orders have begun but not at the pace the industry had hoped for. The company faces a critical decision on further price increases, with the risk of deterring price-sensitive consumers already feeling financial strain, especially after a weaker-than-expected summer sales season.
Despite current challenges, Blue Star's management is cautiously optimistic for FY27, targeting double-digit volume growth driven by its premiumization strategy and expansion in commercial refrigeration. Segment margins are projected between 7-7.5% for projects and commercial ACs, and 8-8.5% for unitary products. Analyst consensus for the 12-month target price ranges from ₹2,000–₹2,300, suggesting potential upside if growth drivers materialize. However, some analysts like Jefferies maintain a 'Hold' rating, indicating limited immediate gains, while others, such as Axis Capital, are more bullish with a 'Buy' rating and higher targets.
