Blue Star (500067) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 6.4% year-over-year to ₹2,422 crore, with EBITDA up 23% and profit before tax up 1%, despite weak summer, GST changes, and persistent rains impacting demand, especially in room air conditioners and some commercial segments.

• H1 FY26 revenue rose 5% year-over-year, but EBITDA declined 1% and profit before tax dropped 17%.

• Consolidated net profit for Q2 FY26 was ₹98.78 crore, compared to ₹96.06 crore in Q2 FY25; half-year net profit was ₹219.60 crore, down from ₹264.82 crore year-over-year.

• Maintains a diversified business model across air conditioning, refrigeration, and MEP solutions, with operations in 18+ countries.

• Inventory levels remain elevated, with liquidation a top priority before new energy efficiency norms take effect in January.

Financial highlights

• Q2 FY26 revenue: ₹2,422 crore, up 6% year-over-year; EBITDA: ₹183 crore, up 23% year-over-year; margin improved to 7.6%.

• Net profit increased 2.8% to ₹99 crore; PBT up 1.3% to ₹133 crore.

• Q2 FY26 EPS: ₹4.80, up from ₹4.67 in Q2 FY25.

• Carried forward order book as of September 30, 2025, grew 7.9% year-over-year to ₹7,120 crore.

• Net borrowings stood at ₹417 crore in H1FY26, compared to net cash of ₹185 crore in H1FY25.

Outlook and guidance

• Full-year growth is expected to be flat or slightly negative, with a possible industry decline of up to 15%.

• Margin guidance for unitary products and electromechanical segments is 7-7.5% for the year.

• H2 FY26 is expected to be better, driven by GST benefits and pre-summer demand, but high inventory and weather disruptions remain risks.

• New product launches planned ahead of Summer 2026 in the Room Air Conditioning segment.

• Long-term growth outlook remains positive, with industry CAGR estimates of 15-19%.