Air-conditioning and commercial refrigeration major Blue Star Ltd delivered impressive fourth-quarter results, with consolidated net profit rising 17% year-on-year to ₹227 crore compared with ₹194 crore in the same period last year. According to reports from CNBC TV18, the net profit came in above the CNBC-TV18 poll estimate of ₹173 crore. Operating profit (PBIDTA excluding other income) grew 16.8% to ₹326.25 crore, representing 8% of revenue against 7% in Q4FY25. EBITDA increased 16.6% year-on-year to ₹325.2 crore, with margin improving to 8% compared with 6.9% a year ago, surpassing the poll estimate of 6.6%.
Revenue for the quarter rose 1.3% year-on-year to ₹4,072 crore, compared with ₹4,019 crore in the same period last year, though it missed CNBC-TV18 poll estimates of ₹4,276 crore. As reported by CNBC TV18, the Room Air Conditioner segment was affected during summer 2025 due to unseasonal rains, though demand recovered towards the end of the year, helping the company record its highest-ever quarterly revenue in Q4FY26. Growth in Projects, Commercial Air Conditioning and International Business also supported overall performance. For the full financial year FY26, revenue from operations increased to ₹12,401.99 crore from ₹11,967.65 crore in FY25, reflecting 3.6% growth. The company has capitalised on rising temperatures and growing demand for energy-efficient cooling solutions, leveraging its strong brand presence and innovative product offerings.
The company noted that pursuant to Labour Codes notification and ICAI guidance, it had earlier recognised an estimated incremental impact of gratuity and leave encashment of ₹56.35 crore up to December 31, 2025, as an exceptional item. According to CNBC TV18, in Q4FY26, this was reassessed at ₹38.83 crore, resulting in a reversal of ₹17.52 crore in the quarter. Finance costs for the quarter rose to ₹23.06 crore from ₹18.75 crore in Q4FY25, while other income, including treasury income, stood at ₹23.95 crore compared with ₹23.99 crore a year earlier. Tax expense increased to ₹72.91 crore from ₹54.82 crore.
For the full financial year FY26, operating profit rose 6.2% to ₹930.41 crore, or 7.5% of revenue, from ₹875.92 crore, or 7.3% of revenue, in FY25. As reported by CNBC TV18, net profit for the year fell to ₹527.33 crore from ₹591.28 crore, with margins at 4.3% compared with 4.9% in FY25. Other income declined 17.5% to ₹61.91 crore, while finance cost increased to ₹72.14 crore from ₹48.80 crore, mainly due to higher borrowing for working capital requirements. Net cash balance as of March 31, 2026, was ₹175.45 crore compared with ₹640.35 crore a year earlier, while carried forward order book grew 10.5% to ₹6,923 crore. The company's focus on improving operational efficiency and optimising costs has positively impacted its profitability.
Blue Star has recommended a final dividend of ₹8.5 per equity share of ₹2 each for the financial year ended March 31, 2026. According to CNBC TV18, the dividend, as recommended by the Board of Directors and subject to approval at the AGM, will be paid or dispatched after August 6, 2026, to eligible shareholders whose names appear in the Register of Members or Beneficial Owners as on the record date. The company has fixed Friday, July 17, 2026, as the record date for determining eligibility for the final dividend. Shares of Blue Star Ltd ended at ₹1,807.35, up by ₹4.95, or 0.27%, on the BSE following the results announcement. The strong Q4 FY26 results have several implications for Blue Star's investors, with the company's record order book of ₹6,263 crore indicating robust demand across various sectors including infrastructure, healthcare, and commercial real estate.
