Blue Star reported a 3.6% increase in consolidated revenue to ₹12,402 crore for FY26, according to reports from The Hindu BusinessLine. However, net profit declined to ₹527 crore from ₹591 crore in the previous year, primarily due to a one-time exceptional charge related to new labour codes. The Mumbai-based air conditioning and refrigeration company recorded its highest-ever quarterly revenue in Q4FY26, with revenue from operations at ₹4,072 crore, up 1.3% year on year.
Q4FY26 showed strong quarterly performance with net profit rising 17.1% to ₹227 crore, aided by a reversal of ₹17.52 crore from an earlier over-provisioned gratuity and leave encashment liability, as reported by The Hindu BusinessLine. Operating profit for the quarter jumped 16.8% to ₹326 crore, with margins improving to 8% from 7%. For the full year, operating profit rose 6.2% to ₹930 crore, reflecting tighter cost controls, though profit before exceptional items slipped 3.9% to ₹742 crore.
The Electro-Mechanical Projects and Commercial Air Conditioning segment emerged as the standout performer with revenue growing 12.8% to ₹6,763 crore, driven by demand from data centres, factories and government projects, according to The Hindu BusinessLine. In contrast, the Unitary Products segment, which includes room ACs, saw revenue contract 5.1% to ₹5,332 crore after unseasonal rains hurt Summer sales in Q1FY26. The Professional Electronics and Industrial Systems segment revenue fell 12% to ₹307 crore, though margins improved sharply.
The company's order-book grew 10.5% to ₹6,923 crore, as reported by The Hindu BusinessLine. However, net cash position fell sharply to ₹175 crore from ₹640 crore, as working capital requirements rose. Earnings per share fell to ₹25.65 from ₹28.76 in the previous year. The board has recommended a dividend of ₹8.50 per share compared to ₹9 in the previous year.
Chairman and Managing Director Vir S. Advani expressed cautious optimism for FY27, noting that early Summer onset in April 2026 was already lifting room AC sales, according to The Hindu BusinessLine. He flagged rising input costs, currency volatility and West Asia supply chain risks as potential headwinds. Blue Star shares closed at ₹1,806.60 on the NSE on Wednesday, up 0.24%, giving the company a market capitalisation of approximately ₹37,113 crore.
