Blue Star LimitedQ2FY27 Results & Financial Update
Blue Star Limited: Q2FY27 consolidated results and company financials – revenue ₹2,930.95 Cr, PAT ₹123.91 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Blue Star Q2FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Blue Star Limited reported consolidated revenue from operations of INR 2930.95 crore for the second quarter ended September 30, 2026, marking a 21.0% increase compared to INR 2422.37 crore in the corresponding period of the previous year.
Net profit for Q2FY27 rose by 25.4% to INR 123.91 crore from INR 98.78 crore in Q2FY26, bolstered by an exceptional pre-tax gain of INR 23.02 crore recognized from the divestment of the MedTech business.
Operating profit (EBITDA excluding other income) expanded by 10.5% year-over-year to INR 202.58 crore, although the operating margin moderated to 6.91% from 7.57% due to persistent cost pressures.
An extended summer season and delayed monsoon drove robust consumer demand for room air conditioning units, boosting unitary product segment volumes and revenues.
Profitability across operating segments remained constrained as continuous escalation in raw material costs could not be fully passed on through end-product price increases.
Other income improved to INR 15.79 crore from INR 10.01 crore in Q2FY26, supported by higher treasury surplus levels during the quarter.
The company strengthened its balance sheet position, ending the quarter with net cash of INR 289.43 crore compared to net borrowings of INR 417.06 crore as of September 30, 2025.
01 · Business model
What does Blue Star do?
Blue Star Limited is a prominent Indian multinational operating in electro-mechanical projects, commercial air conditioning systems, unitary cooling products, and professional electronics and industrial systems.
The company generates its primary revenue through the design, manufacturing, installation, and maintenance of central and commercial air conditioning equipment, room air conditioners, and commercial refrigeration units.
It serves diverse customer categories including residential buyers, commercial establishments, healthcare facilities, educational institutions, industrial complexes, and large enterprise infrastructure projects.
Blue Star operates an extensive manufacturing footprint, sales network, and international presence across the Middle East, Africa, Southeast Asia, and North America via subsidiaries and joint ventures.
02 · Historical context
What shaped the business before this quarter
On August 31, 2026, wholly owned subsidiary Blue Star Engineering & Electronics Limited completed the sale of its MedTech business for a total consideration of INR 35.65 crore, generating an exceptional gain of INR 23.02 crore.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹2,930.95 Cr | ₹2,422.37 Cr | ₹3,377.92 Cr |
| Total income | ₹2,946.74 Cr | ₹2,432.38 Cr | ₹3,398.68 Cr |
| EBITDA | ₹202.58 Cr | ₹183.41 Cr | ₹174.95 Cr |
| Profit before tax | ₹157.30 Cr | ₹132.17 Cr | ₹134.59 Cr |
| Profit after tax | ₹123.91 Cr | ₹98.78 Cr | ₹102.51 Cr |
| EPS | ₹6.03 | ₹4.80 | ₹4.99 |
| EBITDA margin | 6.91% | 7.57% | 5.18% |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
An extended summer season and delayed monsoon stimulated strong retail demand for room air conditioners, driving substantial topline growth in the unitary products segment.
Segment 1, comprising electro-mechanical projects, commercial air conditioning, service, and international business, expanded revenue by 16.3% to INR 1935.99 crore.
Professional electronics and industrial systems revenue surged by 51.2% year-over-year to INR 97.30 crore, supported by manufacturing demand for industrial solutions and BFSI uptake in data security.
What drove margins
Profit margins remained compressed as material cost escalations exceeded the quantum of periodic price increases successfully passed on to customers.
Profitability in the professional electronics segment benefited from the write-back of warranty provisions following the cessation of MedTech product obligations upon divestment.
Operating margin stood at 6.91% for Q2FY27 compared to 7.57% in Q2FY26, reflecting the dilution from input cost pressures despite higher operational scale.
05 · Demand, customers & order book
Where demand is coming from
The company's carried forward order book stood at INR 7229.22 crore as of September 30, 2026, representing a marginal increase from INR 7120.44 crore a year ago.
Order inflows in the electro-mechanical projects business were spearheaded by data centre infrastructure, with strong ongoing enquiries from industrial factory segments.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Recorded revenue of INR 1935.99 crore and segment result of INR 133.15 crore; billing growth was tempered by project execution delays despite strong data centre order inquiries.
Comprising room air conditioners and commercial refrigeration, generated revenue of INR 897.66 crore and segment result of INR 20.74 crore, impacted by unabsorbed material cost inflation.
Achieved revenue of INR 97.30 crore and segment result of INR 23.10 crore, driven by industrial solutions and the MedTech business divestment gain.
Geography and market mix
In the United States, heat pump supplies continued despite supply chain challenges, with product testing underway with additional OEMs ahead of anticipated tariff normalization.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Management is actively rationalizing the product portfolio through the introduction of differentiated, cost-optimized models to alleviate margin pressures.
Projects, capex and execution
Capital expenditure and capital work-in-progress were maintained in alignment with manufacturing capacity requirements and facility expansion plans.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Divestment of the MedTech business allows the group to concentrate capital and management resources on core cooling and electro-mechanical operations.
Launched next-generation VRF and ducted systems during the quarter to strengthen market leadership in commercial air conditioning.
09 · Reported developments
What changed operationally
Extended summer weather conditions catalyzed strong consumer takeaway for room air conditioners and unitary cooling products.
Completed the strategic divestment of the MedTech business, realizing an exceptional pre-tax gain of INR 23.02 crore.
10 · Pressure points & risks
What is not going smoothly
Billing growth in electro-mechanical projects experienced temporary headwinds due to project execution delays.
Inability to fully pass on input cost increases kept segment operating margins under pressure across cooling lines.
11 · Items worth noticing
The line items that can distort a quick read
Recognition of INR 23.02 crore pre-tax gain on the sale of the MedTech business and INR 9.17 crore profit on the sale of property during the half-year period.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital employed decreased to INR 3200.36 crore as of September 30, 2026, compared to INR 3530.88 crore a year earlier due to normalized working capital levels.
Net cash generated from operating activities for the half year ended September 30, 2026, was INR 414.44 crore.
Capital allocation & funding
Finance costs for Q2FY27 were steady at INR 16.85 crore, reflecting lower average borrowing levels during the period.
13 · Management guidance & targets
What management is targeting from here
Management expressed confidence in sustaining revenue growth momentum through the second half of fiscal 2027.
Strategic priorities for H2FY27 include driving calibrated price revisions, accelerating product cost optimization, and improving operational efficiencies.
14 · Beyond the numbers
What changed beyond the numbers
Reported update
MedTech Business Sale
Blue Star Engineering & Electronics Limited completed the sale of its MedTech business on August 31, 2026, for a total consideration of INR 35.65 crore.
Reported update
Property Sale Gain
Blue Star Limited recognized an exceptional profit of INR 9.17 crore on the sale of property during the half year ended September 30, 2026.
15 · Previous-quarter changes
What changed since the previous quarter
Revenue from operations contracted sequentially from INR 3377.92 crore in Q1FY27 to INR 2930.95 crore in Q2FY27, reflecting seasonal moderation following the peak summer quarter.
Net profit increased sequentially from INR 102.51 crore in Q1FY27 to INR 123.91 crore in Q2FY27, aided by exceptional gains and operational adjustments.
16 · Key Q&A
The quarter, answered directly
What does Blue Star do?
Blue Star Limited is a prominent Indian multinational operating in electro-mechanical projects, commercial air conditioning systems, unitary cooling products, and professional electronics and industrial systems.
What is the clearest takeaway from Q2FY27?
Blue Star Limited reported consolidated revenue from operations of INR 2930.95 crore for the second quarter ended September 30, 2026, marking a 21.0% increase compared to INR 2422.37 crore in the corresponding period of the previous year.
What drove revenue or demand?
An extended summer season and delayed monsoon stimulated strong retail demand for room air conditioners, driving substantial topline growth in the unitary products segment.
What mattered most for margins or profitability?
Profit margins remained compressed as material cost escalations exceeded the quantum of periodic price increases successfully passed on to customers.
What changed operationally beyond the headline numbers?
Management is actively rationalizing the product portfolio through the introduction of differentiated, cost-optimized models to alleviate margin pressures.
What is management guiding or targeting from here?
Management expressed confidence in sustaining revenue growth momentum through the second half of fiscal 2027.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Festive Season Demand Progression: Observe consumer demand trends for room air conditioners and commercial refrigeration through the ongoing festive season.
- 02
Order Book Conversion: Track the conversion of the INR 7229.22 crore order book into billings, particularly data centre MEP project execution progress.
- 03
Margin Recovery Trajectory: Monitor the effectiveness of cost optimization initiatives and price revisions in mitigating raw material cost pressures.
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