Blue Star (500067) investor relations material

Executive summary

• Q1 FY26 revenue grew 4.1% year-over-year to ₹2,982 crore, but profitability declined with EBITDA down 16% and net profit falling to ₹120.82 crore from ₹168.76 crore, mainly due to weak room air conditioner demand from unseasonal rains and margin contraction.

• B2B businesses, especially Electro-Mechanical Projects, performed well with order books at all-time highs and double-digit growth, while Unitary Products and MedTech faced headwinds from weather and regulatory issues.

• Management remains optimistic for full-year double-digit growth, expecting demand revival during the festive season and continued investments in R&D, manufacturing, and digitalization.

Financial highlights

• Revenue from operations was ₹2,982 crore in Q1 FY26, up 4.1% year-over-year; consolidated EBITDA margin declined to 6.7% from 8.3% and net profit margin dropped to 4.03% from 5.84%.

• Profit before tax before exceptional items dropped 27.8% to ₹163 crore; EPS decreased to ₹5.88 from ₹8.21 in Q1 FY25.

• Net cash position as of June 30, 2025, was ₹370.9 crore, down from ₹1,042.9 crore a year earlier.

• Standalone revenue for the quarter was ₹2,846.63 crore, with net profit at ₹108.56 crore.

• Total consolidated income for Q1 FY26 was ₹2,998.32 crore, up from ₹2,889.14 crore year-over-year.

Outlook and guidance

• Management targets double-digit full-year growth, with 10–15% growth for room air conditioners and 15% for electromechanical projects, and expects demand revival during the festive season.

• Margins for unitary products are expected at 7–8% for the year, with segment one margins at 7–7.5%.

• Ongoing investments in R&D, manufacturing, and sustainable operations to support long-term growth.

• Focus on strengthening presence in the USA and Europe.

• Segmental seasonality and market conditions highlighted as key factors for future performance.