According to latest reports, Blue Star Ltd. delivered exceptional Q4FY26 results with consolidated net profit surging 17.25% to ₹227.05 crore, significantly ahead of the previous year's ₹193.64 crore. The profit growth was primarily driven by exceptional item gains and lower taxes, with the company reversing a ₹17.52 crore provision related to new labour code implementation. However, revenue from operations grew modestly by 1.32% to ₹4,072.06 crore, falling short of estimates due to challenging market conditions. The company's carried forward order book as of March 31, 2026, grew 10.5% YoY to ₹6,923 crore, indicating strong future revenue visibility.
As reported by latest data, the electro-mechanical projects and commercial air-conditioning systems segment contributed ₹1,989.92 crore to revenue, up 1.1% year-on-year. The unitary products segment, housing the consumer-facing room AC business, recorded revenue of ₹1,984.96 crore, up 1.26%. However, the professional electronics and industrial systems segment faced challenges with revenue falling 7.3% to ₹97.18 crore during Q4 FY26. Both the Unitary Cooling Products (UCP) and Electro-Mechanical Projects & Packaged Air Conditioning Systems (EMPS) segments recorded muted 1% revenue growth during the quarter.
The standout performance came from the UCP segment margin, which expanded 200 basis points YoY to 10.4%, marking its highest level since Q1FY20 and surpassing estimates of 8%. This strong margin performance was driven by cost rationalisation measures and deferment of discretionary spending. However, gross margin contracted sharply by 165 basis points to 21.5%, impacted by rising commodity prices, though the company offset some pressure through tighter cost controls with employee costs and other expenses declining as a percentage of sales.
The company's board recommended a final dividend of ₹8.5 per share of ₹2 each for FY26, with the record date set for July 17, 2026. Despite the strong profit performance, Blue Star shares declined 1.37% to ₹1,783 on the NSE following the results announcement. Chairman & Managing Director Vir S Advani noted that fiscal 2026 was challenging but concluded positively, with the onset of summer from mid-April 2026 leading to steady pickup in consumer AC sales, indicating improving market momentum for FY27.
According to the latest management commentary, Advani expressed cautious optimism about FY27 outlook, stating the company remains optimistic about the upcoming fiscal year. The management highlighted that the summer season onset from mid-April 2026 has led to steady pickup in consumer AC sales, indicating positive market momentum. For FY26, revenue grew 4% YoY to ₹12,402 crore, while EBITDA rose 6% to ₹931 crore with EBITDA margin improving marginally to 7.5%.
