Blue Star (500067) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue grew 13.3% year-over-year to ₹3,378 crore, but margins declined due to commodity price escalation, rupee depreciation, and delayed summer onset.

• EBITDA margin dropped to 5.2% from 6.7% and profit before tax fell 24% to ₹126 crore.

• Earnings per share decreased to ₹4.99 from ₹5.88 year-over-year.

• Board approved unaudited financial results and appointed Mr. Nikhilesh Panchal as Independent Director for five years.

• Exceptional income of ₹9.17 crore recognized from property sale in Q1 FY27.

Financial highlights

• Consolidated revenue rose to ₹3,378 crore from ₹2,982 crore year-over-year.

• PBT before exceptional items fell 23.7% to ₹125.6 crore from ₹164.6 crore.

• Net profit for Q1 FY27 was ₹102.51 crore, compared to ₹120.82 crore in Q1 FY26.

• Net cash position improved to ₹900 crore, up from ₹371 crore last year.

• Carried forward order book increased 13.5% to ₹7,764 crore.

Outlook and guidance

• Margin recovery expected in H2 FY27, targeting over 6.5% operating margin for Segment 2 for the full year.

• Strong order bookings in data centers and factories signal continued growth prospects.

• Data center MEP projects expected to contribute ₹3,000 crore in order inflow and ₹1,400 crore in revenue for FY27.

• Product portfolio rejig underway to improve competitiveness and margins, with visible impact expected from Q3 onwards.

• Expansion in the US and Europe continues despite tariff uncertainties.