Blue Star (500067) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 4.1% year-over-year to ₹2,982 crore, but net profit declined to ₹120.82 crore as margins compressed and EBITDA fell 16% due to weak room air conditioner sales from unseasonal rains and regulatory issues in MedTech.

• B2B businesses, especially Electro-Mechanical Projects, performed well with order book at an all-time high and double-digit growth in key segments.

• Management remains optimistic for a demand revival during the festive season and expects reasonable full-year growth.

Financial highlights

• Revenue from operations grew 4.1% year-over-year to ₹2,982 crore in Q1 FY26.

• EBITDA margin declined to 6.7% from 8.3% year-over-year; EBITDA was ₹199.99 crore.

• Profit before tax dropped 28% to ₹163 crore; net profit declined to ₹120.82 crore from ₹168.76 crore year-over-year.

• EPS decreased to ₹5.88 from ₹8.21 in Q1 FY25.

• Carry forward order book grew 12.5% year-over-year to ₹6,843 crore.

Outlook and guidance

• Management expects a demand revival during the festive season, targeting 10%-15% growth in room air conditioners for the year.

• B2B segment expected to grow around 15% for the year, with margins of 7%-7.5%.

• Unitary cooling products segment margin guidance revised to 7%-8% for FY26.

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