Blue Star shares rose approximately 5% intraday on Wednesday following the company's announcement of a new range of room air conditioners for the 2026 summer season. According to reports from Moneycontrol, the stock touched an intraday high of ₹1,984 per share on the NSE, representing a 5.1% gain. The stock later settled at ₹1,940 per share, up 2.79% for the session. The latest surge comes as heatwave conditions grip parts of India, with temperatures crossing 40 degrees Celsius in several cities, including Rajkot and Surendranagar, which recorded the highest temperature at 41 degrees Celsius this week. As per The Times of India, nearly 150 million households in India are expected to be able to afford ACs in the future, indicating significant headroom for penetration.
Blue Star has signalled a likely increase in air-conditioner prices, citing changes in energy-efficiency labelling norms from January 2026 and rising commodity costs. As per The Times of India, commodity price increases alone have added about 8.5% to material costs. The energy label revision means that even on a like-to-like basis—such as comparing a 2025 five-star AC with a 2026 five-star model—prices are expected to rise by at least 5%, and in some cases 5%–8%. Combined with these factors, AC prices could increase by around 13%–15%. However, the 10% GST reduction partly offsets this increase, meaning consumers may effectively pay about 5% more than last year. Leading players Voltas, Blue Star, LG, among other AC makers announced price hikes in the 5%-15% range across models, passing on high costs of key raw materials including copper, a weaker rupee, increase in freight costs and new energy-efficiency norms.
The company announced the launch of a new range of room air conditioners on Tuesday, aimed at strengthening its presence in the residential and commercial cooling segments. As reported by Moneycontrol, with the latest addition, Blue Star's portfolio now includes 125 room air-conditioner models, including a flagship premium range catering to different customer needs and usage environments. The new range includes flagship models such as 'super energy-efficient ACs', 'heavy duty ACs', 'hot and cold ACs' and 'ACs with anti-virus technology'. The company launched this comprehensive range specifically designed for the upcoming 2026 summer season, with the portfolio compliance with updated BEE standards and leverages Blue Star's scalable manufacturing capacity of 1.4–1.8 million units. With a network spanning 900 towns and 10,000 outlets, the company aims to strengthen its presence in India's growing cooling market.
2025 turned out to be a failed summer, and the industry may end the current fiscal 5%–7.5% lower than FY25, according to The Times of India. However, Blue Star expects a strong rebound, with FY27 likely to see about 25% value growth and 20% volume growth over FY25. Compared with FY26, volume growth is expected at 25% and value growth at around 30%. The company's current market share stands at about 14.2%–14.3%, and the company aims to increase it to 14.5–14.75%. Blue Star's current production capacity is about 1.4 million units, scalable to 1.8 million units.
Blue Star plans a total capex of ₹200 crore to ₹210 crore, including ₹40 crore for its Himachal Pradesh plant and ₹30 crore for the Sri City facility in Andhra Pradesh, mainly for automation, maintenance, and upgrades. According to The Times of India, about ₹70 crore will be invested in R&D, while ₹60 crore to ₹70 crore is expected to be spent on marketing and advertising. In line with its plan to gain market share, the company aims for 25% volume growth and around 30% revenue growth in FY27.
