Blue Star reported a 3.6% increase in consolidated revenue from operations, reaching ₹12,402 crore for FY26, though net profit fell to ₹527 crore from ₹591 crore the previous year, primarily affected by a one-time charge related to new labor codes. The Mumbai-based air conditioning and refrigeration company achieved its highest-ever quarterly revenue in Q4FY26, with operations revenue at ₹4,072 crore, a 1.3% year-on-year increase. The quarterly net profit rose 17.1% to ₹227 crore, aided by a reversal of ₹17.52 crore from over-provisioned gratuity and leave encashment liabilities. Operating profit for the quarter increased by 16.8% to ₹326 crore, improving margins to 8% (up from 7%).
For the entire fiscal year, operating profit (PBIDTA excluding other income) rose by 6.2% to ₹930 crore, attributable to enhanced cost controls. However, profit before exceptional items and tax declined by 3.9% to ₹742 crore. The company recognized ₹38.83 crore as an exceptional item under the new labor code provisions, which negatively impacted the bottom line. Earnings per share decreased to ₹25.65 from ₹28.76. The board proposed a dividend of ₹8.50 per share, down from ₹9.
The Electro-Mechanical Projects and Commercial Air Conditioning segment was a key driver with a 12.8% revenue increase to ₹6,763 crore, fueled by demand from data centers, factories, and government projects. In contrast, the Unitary Products segment, which includes room air conditioners, experienced a 5.1% revenue decline to ₹5,332 crore due to unseasonal rains affecting summer sales in Q1FY26. The Professional Electronics and Industrial Systems segment also saw a revenue drop of 12% to ₹307 crore, despite a significant margin improvement.
The company’s order book grew by 10.5% to ₹6,923 crore. However, the net cash position sharply decreased to ₹175 crore from ₹640 crore, as working capital requirements increased.
Chairman and Managing Director Vir S. Advani noted that early summer weather in April 2026 is already boosting room air conditioner sales, while cautiously expressing optimism for FY27 amidst rising input costs, currency volatility, and supply chain risks from West Asia.
Blue Star shares closed at ₹1,806.60 on the NSE on Wednesday, reflecting a gain of 0.24% and giving the company a market capitalization of approximately ₹37,113 crore.
Published on May 6, 2026.
