Blue Star Q2 FY27 Results: Net Profit Rises 25.4% to ?123.91 Crore, Revenue Up 21%

Key Takeaways

Blue Star reported a 25.4% year-on-year increase in consolidated net profit to ?123.91 crore for the quarter ended September 30, 2026.

Revenue from operations rose 21% to ?2,930.95 crore, supported by growth across the company's business segments.

The company's carried-forward order book stood at ?7,229.22 crore, although higher material costs affected profitability in its air-conditioning businesses.

Blue Star Limited reported consolidated net profit of ?123.91 crore for the second quarter of FY27, an increase of 25.4% from ?98.78 crore in the corresponding quarter last year. Revenue from operations grew 21% year-on-year to ?2,930.95 crore from ?2,422.37 crore.

The air-conditioning and refrigeration manufacturer disclosed the figures in its investor presentation submitted to the stock exchanges on October 30, 2026.

Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding other income, increased 10.5% to ?202.58 crore from ?183.41 crore a year earlier. The quarterly net profit included an exceptional gain of ?23.02 crore from the sale of the company's MedTech business.

Earnings per share increased to ?6.03 from ?4.80 in Q2 FY26.

Blue Star Q2 FY27: Segment Performance

The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment recorded revenue of ?1,935.99 crore, up 16.3% from ?1,664.21 crore a year earlier.

Despite the revenue increase, segment profit declined 9.5% to ?133.15 crore. The segment's operating margin narrowed to 6.9% from 8.8%.

Blue Star attributed the pressure to project execution delays and higher material costs that could not be fully passed on to customers. Product sales grew during the quarter, and supplies of heat pumps to the US continued despite logistics and supply-chain challenges.

The Unitary Products segment, which includes room air conditioners and commercial refrigeration products, registered revenue of ?897.66 crore. This represented growth of 29.4% from ?693.81 crore in the previous year.

An extended summer supported demand for room air conditioners. Profitability, however, moved in the opposite direction.

Segment profit fell 51.4% to ?20.74 crore from ?42.72 crore, while the operating margin declined to 2.3% from 6.2%. The company said periodic price increases were insufficient to recover the full rise in material costs.

In commercial refrigeration, demand began recovering in categories including deep freezers, bottled-water dispensers and storage-water coolers.

Industrial Solutions Business Records Higher Profit

Revenue from the Professional Equipment and Industrial Solutions segment increased 51.2% to ?97.30 crore from ?64.35 crore.

Segment profit rose to ?23.10 crore from ?6.17 crore, taking the operating margin to 23.7% from 9.6%.

The improvement partly reflected the reversal of warranty provisions following the completion of Blue Star's MedTech business sale on August 31, 2026. The Industrial Solutions business also benefited from demand from manufacturing and testing industries.

Blue Star H1 FY27 Performance and Order Book

For the six months ended September 30, 2026, Blue Star reported consolidated revenue of ?6,308.87 crore, up 16.7% from ?5,404.62 crore in H1 FY26.

Half-year net profit increased to ?226.42 crore from ?219.60 crore. This included exceptional gains totalling ?32.19 crore, comprising ?23.02 crore from the MedTech business sale and ?9.17 crore from a property sale.

EBITDA excluding other income stood at ?377.53 crore, compared with ?383.41 crore in the corresponding period last year.

The company's carried-forward order book was ?7,229.22 crore. It also reported a net cash position of ?289.43 crore at the end of September 2026, compared with net borrowings of ?417.06 crore a year earlier.

Blue Star's quarterly performance reflected higher revenue across all three operating segments, although cost pressures continued to affect margins in its core cooling businesses.