According to The Economic Times, Blue Star managing director B Thiagarajan expressed his hope for both seasons to perform well this year. "I pray that summer is good and monsoon is also good," Thiagarajan told ET Now, highlighting the dual challenge facing India's AC industry as it emerges from a weak FY26 base while grappling with geopolitical headwinds. The company's growth outlook hinges on a rare atmospheric double play: a blistering, sustained heatwave to trigger immediate urban sales, followed by a robust monsoon to nourish rural markets that now drive over 65% of industry sales. With temperatures crossing 40 degrees Celsius in some regions for the first time in recent days, summer has finally arrived after April rains threatened the crucial selling season.
As reported by The Economic Times, tier III, IV and V markets comprising more than two-thirds of sales, making the rural economy's health critical for sustained growth. Thiagarajan noted that "if at all there is a shortfall, it should be a minor shortfall." The managing director compared the current environment to a "T20 cricket" match where "just one or two hours can derail" outcomes. The industry faces the delicate task of passing on price increases to consumers while managing war-related concerns, with Kerala sales running below last year's levels due to the Middle East conflict impact. Early optimism comes with caveats, as the company navigates through uncertain global and domestic headwinds.
According to The Economic Times, price increases averaging 13%, with 5% from energy label changes and 8% from commodity costs, have only been partially absorbed by the market so far. Consumers may see just 3-4% higher prices in May, partially offset by a 10% GST reduction from last year. Thiagarajan explained that "enough inventory was there in the market in March itself," cushioning the immediate impact. The company stressed there is currently no demand-supply mismatch, with adequate inventory in place despite the early summer onset and the challenging pricing environment.
As reported by The Economic Times, Thiagarajan flagged ongoing concerns about raw material inflation, citing the rupee, steel, copper, aluminium and zinc prices as variables tied to global volatility. "My sense is that it will be an inflationary trend for at least six to seven months," he said. The managing director noted that consumer sentiment appears resilient so far, protected from war-related impacts, with "the government has done a great job in ensuring they are not burdened."
According to The Economic Times, the festival season outlook remains entirely dependent on how the war situation evolves and overall economic sentiment in India, leaving the second half of the year uncertain even as summer sales show promise. Thiagarajan noted that early signs "seem more positive as the weeks are rolling by," though the industry faces ongoing challenges. The company's path to a record-breaking year depends on sustained performance across both urban and rural markets, with the rural economy's health directly tied to monsoon performance becoming critical for sustained growth.
